Insuring Agreement

If you need a CGL--CG0001 

Insuring Agreement--

  • The need for Liability
  • Bodily Injury
  • Property Damage
  • An “occurrence”--such an important Definition

    Defense--If there is any potential coverage the carrier must provide defense. This is HUGE and may be worth the premium by itself! It may come with a ‘Reservation of Rights’ (insert AIG joke here) but this is so important. The obligation to Defend ends when the limit is paid but the $$$ are outside of limits until then. 

    The Right to Settle--This often upsets the agent/broker as well as the client but the carrier has this right. They are afraid of losing or going broke winning.

  •     Which policy??--the policy in effect when the bi or pd takes place to a 3rd party. When the ‘snap/crackle/pops. Remember why we call Liability 3rd party coverage. Want More------OCCURRENCE

Want even More--here is an article about  Insurance Archaeologists that reminds us how things can go ‘way back’ and why you should not throw an occurrence policy away---EVER.

Marketplace Response--Many carriers are trying to limit the ‘stacking’ problem of occurrence policies by attaching an endorsement with  HYBRID Language -

Montrose--This was added by endorsement around 1999 and then “built                 

            in” with the 10/01 and will remain with all re-writes.  Coverage cannot be “stacked

            (carriers hope anyhow) after the event becomes KNOWN even if liability

            is not established until later policies.  This problem came out of CA and

            involved an insured call “Montrose Chemical Co.” so the name

             ‘Montrose’ has stuck! The decision itself, however, only involved the 

            requirement to Defend 

If you would like more on Montrose click here-----MONTROSE

Next Page---Coverage A Exclusions (bi & pd)