Occurrence.
A lot of time and effort has been spent deciding
what incidents liability policies would routinely
cover. The old word was Accident, but it was
too narrow and implied only sudden incidents.
Today the word occurrence is commonly found
in liability policies. The CGL reads:
"Occurrence
means an accident, including continuous or repeated
exposure to substantially the same general harmful
conditions."
Insured
contract. CGL does offer some
coverage for a few contractual liabilities.
These agreements include:
• sidetrack
• easement or license
• elevator maintenance
Example. Let's say a railroad
contracts to run a track along your warehouse
property. Plus, the railroad holds you responsible
for injury or damage from the sidetrack. That's
a sidetrack agreement.
Impaired
property. This is tangible property
that can be restored.
Example.
Some of your work is incorporated into another's
work or product. It causes that work or product
to be impaired. Under CGL, you have coverage.
That coverage is not for your work, but for
correcting the impaired property.
Realize liability
insurance does not correct your poor workmanship;
it just compensates others for your negligence.
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