Commercial Liability

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Commercial Liability

• Mack Rogers Jr. CPCU

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Course Objectives

• Understand the most common liability polices
  found in business and how they work
• Understand how these liability policies fit into
  the the overall insurance program of a business
• Understand the roles of risk manager, broker and
  insurance company in creating an insurance program

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Course Outline

• Principles of liability
• Liability loss prevention control
• Commercial General Liability ( CGL)
• CGL Part 2
• CGL Part 3
• Business automobile liability
• Garage Motor Carriers Exam

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Course Outline

• Workers Compensation
• Med. malpractice/engineers/accountant
• D O/employment practices/fiduciary
• Environmental insurance
• Marine insurance
• Aviation insurance
• Umbrella insurance Exam

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Commercial Liability

• The ability to legally lie about your injuries
  and collect large sums of money

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• Lawsuits

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Major Liability Cases

• Products
• Premises ownership
• Pollution
• Medical
• Pharmaceutical
• Other Professional
• Libel - slander

• Automobiles
• Watercraft
• Aircraft
• Employee benefits
• Construction
• Oil, Gas Energy
• Discrimination

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Legal Liability

• Legal requirement to pay damages to a third
  parties
• Found in
• Civil Law
• Criminal Law
• Based on
• Torts
• Contracts
• Statutes

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Legal Liability
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Elements of a Tort

• Legally protected right
• Wrongful invasion of that right
• Damages as a proximate or direct result of that
  invasion

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Elements of Negligence

• Legal duty owed
• Legal duty breached
• Actual damages resulted
• Proximate or close causal connection between
  the defendants actions and the plaintiffs
  injuries

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Defenses to Negligence Actions

• Refute one or more of the Elements of
  Negligence
• Contributory Negligence
• Comparative Negligence
• Assumption of Risk
• Statute of Limitations
• Immunities

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Intentional Torts

• Action against a person
• Defamation
• Invasion of privacy
• Fraud
• Bad faith
• Interference with relationships
• Misuse of legal process
• Acts against property
• Nuisance

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Strict Liability Torts

• Abnormally dangerous instrumentalities
• Ultra-hazardous activities
• Dangerously defective products

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Vicarious Liability

• Involves one person being responsible for the
  negligent acts of another, such as
• an employer being held legally liable for the
  wrongful acts of his or her employees

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Liability based on Contracts

• Breach of contract
• Hold Harmless or Indemnity Agreements

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Liability based on Statutes

• Workers Compensation
• Uniform Aeronautics Law
• Maritime Law
• Jones Act
• USLH
• Defense Base Act
• OSHA

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(No Transcript)
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Principle Liability Loss Exposures

• Premises Operations
• Products Completed Operations
• Personal injury / advertising liability
• Automobile Liability
• Work Comp Employers Liability
• Professional Liability
• Watercraft Liability
• Aircraft Liability

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Strict Liability Products

• Was the product defective when it left the
  manufacturers control?
• Was the defective condition unreasonably
  dangerous?
• Was the defect a proximate cause of injury?

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Is there negligence ? What type?

• Slip and fall in grocery store
• Mistaken identification shoplifting
• Strip search shoplifting
• Customer injured in mechanic bay
• TV Statement - nightclub sells drugs
• Insurance company refuses to settle
• Photo used without permission
• Joy riding mechanic

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Is there negligence cont.

• Asbestos dumped in park
• Shingles dropped by workmen at site
• at fault auto wreck on way to site
• Subcontractor leaves ladder

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Describe Exposure

• Bulldozer hits building next door
• Subcontractor hurt at job site
• Employee hurt at job site
• Car seat fails
• Building under construction collapses
• Building collapses after completion
• Surgeon severs nerve during operation

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Risk Management Techniques

• Prevention
• Reduction
• Insurance
• Contractual transfer
• Deductible
• Self Insurance

Fund Internally
Fund Externally
Management Techniques
Control
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Risk Management Process

• Identify loss exposures
• Analyze loss exposures
• Examine alternative techniques
• Select the best technique
• Implement the technique
• Monitor the program