The article of the month in the Dec Page pertains to contractual liability exposure. In terms of insurable liability, there are several ways that the insured can become legally obligated to pay damages: through negligence; through statute; and through assuming liability. Assumed liability, including assuming the liability of another, is the subject of this article. The discussion about contractual liability exposures offers information on the legal basis of contractual liability, along with data on insured contracts and contractual liability insurance.

The court cases in the Dec Page come from two United States District Courts, the Pennsylvania Supreme Court, and the Alabama Supreme Court.

The first case deals with the trigger of coverage for business interruption coverage. The U.S. District Court for the Northern District of Indiana had to decide if the insured did, in fact, suffer business interruption after a theft loss occurred. The District Court in Florida discussed whether legionella bacteria was a pollutant and whether the pollution exclusion in the general liability policy applied to a wrongful death claim; the court also ruled on whether a spa tub can be a structure in the context of the policy language. The Supreme Court of Pennsylvania issued a ruling on the validity of the workers compensation exclusion in the underinsured motorists coverage section of the auto policy; the issue was whether such an exclusion violated public policy. In the final case, the Alabama Supreme Court dealt with the question of faulty workmanship and whether it constitutes an occurrence.

Questions and Answers

Are auto parts used as decoration art work or auto parts? See Auto Parts as Art Work. If an insured damages his property trying to protect it, is there coverage? See Unintentional Damage. Are underground water lines considered to be part of the dwelling? See Water Lines as Structures Attached to the Dwelling.

When settlement is actual cash value, is depreciation subtracted before or after application of the deductible? See Deductible Calculation. When an insureds medical marijuana plants are stolen, are they considered personal property or trees, shrubs, and plants? See Theft of Medical Marijuana Plants.

Fiduciary E&O Review

For an updated discussion of fiduciary errors and omissions liability exposures based on ERISA provisions, see Fiduciary EO Review.

Spoilage Coverage

The Spoilage Coverage form, CP 04 40 06 07, can be used to modify the Building and Personal Property Coverage form and the Condominium Commercial Unit-owners Coverage form. It provides coverage for perishable stock due to breakdown or contamination or power outage, as indicated on the declarations. To see an update of this article, go to Spoilage Coverage.