The question of the month discusses the various laws (federal and state) dealing with the employer-employee relationship. For example, there is the Family and Medical Leave Act (FMLA), the Americans With Disabilities Act (ADA), and state workers compensation laws. These laws address many issues that arise due to the employer-employee relationship, such as, what number of employees must be employed before the provisions of the laws apply; who is covered by the laws; and what type of medical inquiries may an employer make?

The answers to these and a host of other questions depend on which law is applicable. For the answers and to review a chart that compares the FMLA, the ADA , and workers comp laws, link onto the designated article in the FC&S Bulletins.

The Dec Page also offers a useful brief on premises liability law by explaining the three classifications that describe the relationship between an injured party and a landowner or possessor. These classifications are: trespasser, licensee, or invitee. Each classification has its own distinctive characteristics that determine the liability exposure of a landowner for injuries occurring on his property, since the status of the injured party as a trespasser, licensee, or invitee often dictates the duty owed by the landowner to that party.

The court cases in the Dec page deal with the reservation of rights letter, ongoing operations, and the allocation methodology. The reservation of rights letter case pertains to whether this letter is subject to discovery by a claimant; a Texas appeals court addresses this issue. The ongoing operations case addresses the issue of whether ongoing operations encompass a warranty period. And finally, the allocation of liability coverage among multiple insurers is discussed and analyzed by the New Hampshire Supreme Court. This case is very educational and the reasoning of the court would be very helpful to parties that have to face the allocation question in the future.

Questions and Answers

CG 21 44, limitation of coverage to designated premises or projects, provides coverage arising out of the ownership, maintenance, or use of the designated premises. Does this coverage apply to the product of the insured that is manufactured at the premises but sold for use off-premises? See General Liability Coverage at Designated Premises. A ladder falls from the side of a truck while the employee of the insured is unloading the truck; is this a claim for the CGL form or the BAP? See Loading and Unloading Issue. A pollution claim has been made due to leakage from certain pieces of equipment: but, are these pieces of equipment considered mobile equipment as defined on the CGL form? See Pollution Claim and Mobile Equipment.

If water becomes contaminated due to the use of the insured's product, and the business of the claimant is forced to shut down, is this considered a property damage claim? See Property Damage Claim Based on Loss of Use. Is the named insured covered by his BAP when an employee, using his own car, causes an auto accident? See Business Auto Policy and Property Damage Claim.

Products-Completed Operations Coverage

Products-completed operations coverage is offered through the use of CG 00 37 12 07 and CG 00 38 12 07. CG 00 37 is the occurrence form and CG 00 38 is the claims-made version. This article offers an overview of products-completed operations coverage and of the two coverage forms. See Products-Completed Operations Coverage.

Overhead and Profit

This article was written by Mr. Edward Eshoo, Jr., a founding partner of Childress Duffy Goldblatt, Ltd. The article appeared in the October 2007 edition of Adjusting Today, and is copyrighted by Adjusters International. The article is reproduced in FC&S with permission of Adjusting Today.

The place of overhead and profit in a property insurance claim is analyzed through a review of court opinions on the subject, state insurance commissioner rulings, and the insurance industry custom and practice. For a thorough and informative discussion of overhead and profit, see Overhead & Profit.