Commercial General Liability (CGL) Continued Coverage A - Bodily Injury and Property Damage Liability Coverage B - Personal and Advertising Injury Liability Coverage C - Medical Payments Limits Triggers - Occurrence vs. Claims Made Extended Reporting Periods Additional CGL Provisions

Limits of Insurance General Aggregate Limit Most insurer will pay in total for: Coverage A except products-completed operations Coverage B and Coverage C Products-Completed Operations Aggregate Each Occurrence Limit Coverage A and Coverage C Personal and Advertising Injury Limit Fire Damage Limit Medical Expense Limit Coverage C - per person

Example of CGL Limits General Aggregate Limit $1,000,000 Products and Completed Operations Limit 1,000,000 Per Occurrence Limit for Coverages A and C 500,000 Personal and Advertising Injury Limit 500,000 Fire Damage Limit 100,000 Medical Expense Limit (per person) 25,000

Triggers Occurrence Bodily injury or property damage must occur during the policy period Claims-Made Claim must be first made during the policy period or extended reporting period Injury or damage must not have occurred before the policy’s retroactive date (if any) or after the end of the policy period

Extended Reporting Periods Basic Extended Reporting Period (BERP) Automatic if policy is canceled or not renewed Renewal has later retroactive date or is occurrence policy Covers claims reported within 5 years if occurrence reported within 60 days of end of policy period Supplemental Extended Reporting Period (SERP) Must be purchased within 60 days of end of policy period Extends reporting period for unknown occurrences indefinitely and for known occurrences if claim develops after 5 years Cost can be up to 200% of policy premium Reinstates policy aggregate limits

Claims-Made Examples Policy Effective 1/1/93-12/31/93 Retroactive Date 1/1/93 Premium $40,000 Policy Limits $500,000 per occurrence $500,000 aggregate Policy not renewed No new policy is available Insured purchases SERP for $80,000 in January 1994

Customer injured on 7/10/93 Claim filed 2/15/94 Claim settled for $200,000 on 6/14/95 $200,000 covered under BERP Customer injured on 8/15/93 Incident reported to insurer on 12/18/93 Claim filed 6/10/97 Claim settled for $400,000 on 2/28/99 $300,000 covered under BERP Customer injured on 5/1/93 Incident not known by insured until claim filed on 8/1/99 Claim settled for $700,000 on 3/10/02 $500,000 covered under SERP

Additional CGL Provisions Exclusion of specific accidents, products, work or locations Laser beam endorsement Special claims-made conditions Notice of an occurrence is not notice of a claim Coverage is excess over occurrence policy with earlier effective date Insured’s right to claim information Claims-made versus occurrence premiums