Summary: The American Association of Insurance Services (AAIS) businessowners liability section contains five subsections: coverage L—bodily injury liability and property damage liability, coverage M— medical payments (although technically not a liability coverage, it is common practice to place medical payments coverage here), coverage O— fire legal liability, and coverage P— personal and advertising injury.

In this article, we examine the coverages for medical payments, personal and advertising injury, fire legal liability, the conditions governing loss settlement and payment, and the nuclear energy liability exclusion. For a discussion of bodily injury and property damage liability, see AAIS Businesssowners—Liability.

Topics covered:

Coverage M—medical payments

Coverage O—fire legal liability

Coverage P—personal and advertising injury

Supplemental payments

Loss settlement conditions and limits of insurance

Additional conditions

Nuclear energy liability exclusion

Coverage M—Medical Payments

The insuring agreement for medical payments coverage promises that the insurer will pay for bodily injury (as defined) caused by an accident on premises that are owned by or rented to the named insured, on ways adjacent or next to those premises, or at any location, but only if the injury arises from the insured's operations. The basic limit for this coverage is $5,000 per person. The insurer pays the “reasonable and necessary expenses for”: