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| December 2007, Volume 12 |
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SECTION V—DEFINITIONS Each word or phrase shown in quotation marks in the policy is defined in this section. A list of the 22 defined words or phrases follows, in alphabetical order. 1. "Advertisement" is a notice that is broadcast or published to the general public or to a specific market segment about the goods, products or services of the insured, for the purpose of attracting customers or supporters.
2. "Auto" is a land motor vehicle, trailer or semi-trailer designed for travel on public roads, including any attached machinery or equipment, but this definition does not include vehicles otherwise defined as "mobile equipment." The definition in the 12 04 edition also includes mobile equipment or any land vehicle subject to compulsory or financial responsibility laws or similar motor vehicle requirements. This moves this type of mobile equipment out of the liability coverage of the CGL policy and to the auto policy. Example: The laws in Mary’s state require that ATVs be registered and comply with financial responsibility laws. She travels off road from her business to a neighbor’s home and strikes and kills the neighbor’s llama. The value of the llama is $5,000 but there is no coverage under the CGL policy for the loss. In addition, since Mary had not listed the ATV on her auto policy, there is no coverage for this loss under the auto policy either. 3. "Bodily injury" is bodily injury, sickness or disease, including death from any of these, experienced by a person. 4. "Coverage territory"
5. "Employee" includes a "leased worker," but does not include a "temporary worker." 6. "Executive officer" is a position of officer of the insured, created by the by-laws, charter or similar document of the insured. 7. "Hostile fire" is a fire that becomes uncontrollable or breaks out from where it was intended to be. 8. "Impaired property" is tangible property, excluding any product or work of the insured, that has lost full or partial use because: a. it contains a product or work of the insured that is either known or thought to be defective, deficient, inadequate or dangerous and if that property can be restored by repair, replacement, adjustment, or removal of the product or work of the insured; or if b. the insured has failed to fulfill the terms of a contract or agreement and the property can be restored by the insured fulfilling the terms of that contract or agreement. 9. "Insured contract" is: a. a contract for a lease of premises, except for that part of any contract that agrees to indemnify for fire damage to any premises that is leased, rented or temporarily occupied by the insured; b. a sidetrack agreement; Please refer to the discussion on sidetrack agreements that appears earlier in this analysis. c. any easement or license agreement, except in connection with construction or demolition operations on or within 50 feet of a railroad; d. an obligation required by ordinance to indemnify a municipality, except when in connection with work for a municipality; e. an elevator maintenance agreement; f. that part of any contract or agreement relating to the insured’s business (including an indemnification contract with a municipality for work performed for that municipality), where the insured assumes the tort liability of another party to pay for "bodily injury" or "property damage" to a third party. Tort liability is the liability imposed by law, with or without a contract or agreement. (1) Any part of any contract or agreement that indemnifies a railroad for losses that result from construction or demolition within 50 feet of any railroad property, or that affects any railroad bridge, trestle, track, road-bed, tunnel, underpass or crossing is not covered. (2) Any part of any contract that indemnifies an architect, engineer or surveyor for losses resulting from preparing, approving or failure to prepare or approve maps, shop drawings, opinions, reports, surveys, field orders, change orders, or drawings and specifications is not covered. The giving or failing to give directions or instructions, if that is the main cause of injury or damage is also not covered. (3) If the insured is an engineer, architect or surveyor, any loss due to liability assumed by the insured for his rendering or failure to render the professional services indicated above, as well as the additional services of supervisory, inspection, architectural or activities, is not covered. 10. "Leased worker" is any person leased to the insured by agreement with a labor-leasing firm in which the person is to perform the duties relating to the conduct of the insured’s business but this definition does not include any "temporary workers." 11. "Loading or unloading" a. Once accepted by the insured, it is property handled or moved onto or into any aircraft, watercraft, or "auto"; b. Property while on or in any aircraft, watercraft or "auto"; c. Until delivered, it is property handled or moved off of or from any aircraft, watercraft or "auto." However, the movement of property by mechanical devices other than a hand truck or those attached to the aircraft, watercraft or "auto" is not covered. 12. "Mobile equipment" is any of the following types of land vehicles including attached machinery or equipment: a. Bulldozers, farm machinery, forklifts and other vehicles designed primarily for off-road use; b. Vehicles used only on or next to the insured owned or rented premises; c. Vehicles that move only on crawler treads; d. Vehicles used to provide mobility for permanently mounted power cranes, shovels, loaders, diggers and drills, and road construction or resurfacing equipment such as graders, scrapers or rollers, whether or not the vehicle is self-propelled; e. Vehicles not previously described and not self-propelled but used to provide mobility for permanently attached equipment, such as cherry pickers or similar devices used to raise or lower workers or equipment such as air compressors, pumps and generators, including spraying, welding, building cleaning, geophysical exploration, lighting and well servicing equipment; f. Vehicles not previously described and used for purposes other than transporting persons or cargo. Self-propelled vehicles with permanently attached equipment, such as that designed for snow removal, road maintenance (not construction or resurfacing) or street cleaning, cherry pickers or similar devices mounted on automobile or truck chassis and used to raise or lower workers or equipment and air compressors, pumps and generators, including spraying, welding, building cleaning, geophysical exploration, lighting and well servicing equipment are considered "autos." The 12 04 edition of the CGL policy removes from eligibility all land vehicles subject to an individual state’s financial or compulsory responsibility laws or similar motor vehicle rules. These are now considered autos instead of mobile equipment and coverage for such vehicles must be provided in the auto policy. 13. "Occurrence" is an accident, which includes continuous or repeated exposure to the same harmful condition. 14. "Personal and advertising injury" is injury, including consequential "bodily injury," arising out of one or more offenses consisting of: a. False arrest, detention or imprisonment; b. Malicious prosecution; c. Wrongful eviction from, wrongful entry into or invasion of the right of private occupancy of a room, dwelling or premises that a person occupies, committed by or on behalf of its owner, landlord or lessor; d. Oral or written publication of material that slanders or libels a person or organization or disparages a person's or organization's goods, products or services. This can take place in any form of communication, including the Internet and other electronic forms of communication; e. Oral or written publication of material that violates a person's right of privacy. This violation can take place in any form of communication, including the Internet and other electronic forms of communication; f. The use of somebody else's advertising idea in the insured’s "advertisement"; or g. Infringing on the copyright, trade dress or slogan of another in the insured’s "advertisement." 15. "Pollutants" are any solid, liquid, gaseous or thermal irritant or contaminant, including smoke, vapor, soot, fumes, acids, alkalis, chemicals and waste. Waste includes materials to be recycled, reconditioned or reclaimed. 16. "Products/completed operations hazard" a. Includes all "bodily injury" and "property damage" that occurs away from any premises owned by or rented to the insured that results from the product or work of the insured. It does not include those products still in the insured’s physical possession or work that has not yet been completed or abandoned. b. Work is considered completed when either all the work called for in the insured’s contract has been completed, all of the work at one site has been completed (if the contract calls for work at more than one site) or that part of work done at a site has been put to its intended use by any party other than a contractor or subcontractor still working on the same project. Work is considered completed, even if it may still need service, maintenance, correction, repair or replacement. c. Excluded items are: (1) Transportation of property, unless injury or damage is caused by a condition in or on a vehicle not owned or operated by any insured, and is created by the "loading or unloading" of that vehicle by any insured; (2) Existence of tools, uninstalled equipment or abandoned or unused materials; or (3) Products or operations for which the classification listed in the declarations or policy schedule states that the products/completed operations are subject to the general aggregate limit. 17. "Property damage" is both the physical injury to tangible property, including all resulting loss of use of that property, as well as the loss of use of tangible property that has not been physically injured. Loss of use is considered to have occurred at the time of the injury or "occurrence" that caused it. Electronic data is not tangible property. Electronic data includes information, facts or programs stored or used by the computer. Anything that could be considered computer software such as hard and floppy disks, CD-Roms, or any media is not tangible property. This is extremely important and limiting and its importance cannot be overemphasized. If the named insured somehow passes a computer virus to the computer of another party and that virus destroys important data on that computer, there could have been some argument for coverage in the past. With this definition, that argument no longer applies. 18. "Suit" is a civil proceeding that alleges damages for injury or offenses covered by this insurance. Arbitration or other alternative dispute resolution methods, where such damages are claimed and to which the insured must submit with insurer consent, qualify as a "suit." 19. "Temporary worker" is any person who is furnished to the insured as a substitute for a permanent "employee" on leave or in order to meet a seasonal need or a short-term workload situation. 20. "Volunteer worker" acts at the named insured's direction and within the scope of duties set by the named insured but is not paid by the named insured or anyone else. 21. "Your product" is: a. Any goods, products (other than real property) that are manufactured, sold, handled, distributed or disposed of by the insured, others trading under the insured’s name or any party whose business or assets have been acquired by the insured. This includes containers (excluding vehicles), materials, parts or equipment furnished in connection with such goods or products. b. Also included are: (1). Warranties or representations made with respect to the fitness, quality, durability, performance, or use of the product; (2). Providing of or failure to provide adequate warnings or instructions. c. Vending machines or other property rented to or located for the use of others but not sold are not included. 22. "Your work" is:
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