Key Takeaways
- Commercial General Liability (CGL) protects businesses from third-party bodily injury and property damage claims
- CGL Coverage A covers bodily injury and property damage liability on an occurrence basis
- CGL Coverage B covers personal and advertising injury including libel, slander, and defamation
- Professional liability (E&O) insurance covers errors and omissions in professional services
- Umbrella policies provide additional liability limits above underlying CGL and auto policies
Iowa General Liability Insurance
Commercial General Liability (CGL)
CGL insurance protects Iowa businesses from claims arising from their operations.
Coverage A - Bodily Injury and Property Damage
| Coverage Aspect | Description |
|---|---|
| Bodily Injury | Third-party injuries on premises or from operations |
| Property Damage | Damage to others' property |
| Legal Defense | Defense costs (often in addition to limits) |
| Trigger | Occurrence-based (when injury/damage occurs) |
Coverage B - Personal and Advertising Injury
| Offense Type | Description |
|---|---|
| Libel | Written defamation |
| Slander | Spoken defamation |
| False advertising | Misleading advertising claims |
| Copyright infringement | In advertising |
| Wrongful eviction | Unlawful eviction actions |
Coverage C - Medical Payments
- No-fault coverage for minor injuries
- Pays regardless of liability
- Typically $5,000 - $10,000 per person
- Good faith gesture to prevent lawsuits
CGL Policy Limits
| Limit Type | Typical Amounts |
|---|---|
| Each Occurrence | $1,000,000 |
| General Aggregate | $2,000,000 |
| Products/Completed Operations | $2,000,000 |
| Personal/Advertising Injury | $1,000,000 |
| Damage to Rented Premises | $100,000 |
| Medical Expense | $5,000 |
Professional Liability (E&O)
For professionals providing advice or services:
| Aspect | Description |
|---|---|
| Coverage | Errors, omissions, negligence in professional services |
| Trigger | Usually claims-made (when claim is filed) |
| Tail Coverage | May be needed when switching insurers |
| Industries | Insurance agents, consultants, accountants, etc. |
Umbrella Liability
Provides additional protection above underlying policies:
- Excess coverage over CGL, auto, employers liability
- Typically starts at $1,000,000 increments
- Broader coverage may apply to claims not covered by underlying policies
- Essential for businesses with significant liability exposure
Iowa-Specific Considerations
Under Iowa's modified comparative fault system:
- Defendants 50%+ at fault: Joint and several liability for economic damages
- All defendants: Proportionate liability for non-economic damages
- Adequate liability limits help protect against catastrophic claims
Exam Tip: Remember the difference between occurrence-based CGL policies (triggered when damage occurs) and claims-made professional liability policies (triggered when claim is filed). Tail coverage is important for claims-made policies.
What type of coverage trigger does a standard Commercial General Liability (CGL) policy use?
Which CGL coverage part covers libel, slander, and defamation claims?
What is the purpose of tail coverage in professional liability insurance?
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