Nebraska Liability Insurance

Commercial General Liability (CGL)

CGL Coverage Overview

Commercial General Liability insurance protects businesses from claims arising from:

Coverage A - Bodily Injury & Property Damage

Covers claims from third parties for:

• Injuries on business premises (slip and fall)
• Injuries from business operations
• Damage to third-party property
• Products liability claims
• Completed operations liability

Defense Coverage:

• Insurer provides legal defense
• Defense costs in addition to policy limits (most forms)
• Duty to defend broader than duty to indemnify

Coverage B - Personal and Advertising Injury

Covers claims for:

Coverage C - Medical Payments

• No-fault coverage for minor injuries
• Pays regardless of business liability
• Typically $5,000 - $10,000 per person
• Good customer relations tool
• Does not apply to employees

CGL Exclusions

Standard CGL policies exclude:

CGL Policy Limits

Exam Tip: CGL policies have multiple limits. The general aggregate is the maximum the policy pays for all covered claims during the policy period.

Nebraska Workers' Compensation

Coverage Requirements

Nebraska Workers' Compensation Act (NRS Chapter 48) requires:

Mandatory Coverage

Workers' comp is mandatory in Nebraska for:

• All employers with one or more employees
• Full-time, part-time, and seasonal workers
• Family members who are employees
• Out-of-state employers with Nebraska operations

Exemptions from Coverage

Benefits Provided

Compensation Rates

Employer Obligations

Nebraska employers must:

1. Obtain workers' comp coverage (insurance or self-insurance)
2. Post notice of coverage in workplace
3. Report injuries to insurer promptly
4. Not retaliate against employees who file claims
5. Maintain required payroll records

Penalties for Non-Compliance

Exam Tip: Nebraska requires workers' compensation for employers with ONE or more employees (with limited exceptions). This is more stringent than some states.

Professional Liability Insurance

Errors and Omissions (E&O) Coverage

Professional liability protects against claims arising from:

• Professional negligence
• Errors in professional services
• Omissions in professional advice
• Failure to perform professional duties

Professions Needing E&O Coverage

E&O Policy Features

Insurance Producer E&O

Nebraska insurance producers should maintain E&O coverage for:

• Failure to procure requested coverage
• Errors in applications or quotes
• Failure to advise on coverage gaps
• Delayed claims reporting
• Misrepresentation of coverage

Umbrella and Excess Liability

Umbrella Liability Insurance

Umbrella policies provide:

• Coverage above underlying policy limits
• Broader coverage than underlying policies
• Drop-down coverage for some excluded claims
• Single policy covering multiple exposures

Excess Liability Insurance

Excess policies provide:

• Additional limits above underlying policies
• Same coverage terms as underlying (follows form)
• No broader coverage (difference from umbrella)
• Pure excess over specified underlying limits

When Umbrella/Excess is Needed

Underlying Insurance Requirements

Umbrella policies typically require minimum underlying limits:

Nebraska-Specific Liability Considerations

Agricultural Liability

Nebraska's agricultural economy creates unique liability exposures:

Severe Weather Liability

After severe weather events:

• Debris removal liability
• Temporary repair contractor oversight
• Additional living expense administration
• Claim handling compliance

Pollution Liability

Agricultural and industrial operations may need:

• Environmental impairment liability
• Underground storage tank coverage
• Pollution legal liability
• Site-specific environmental coverage