Claims Examples
Property Damage: Forgetfulness Results in a Big Price Tag
A surveyor was working on an airport runway. When he left for lunch, he left his tripod and prism standing upright on the side of the runway. A small Falcon 900 airplane came in for landing and the right wing clipped the equipment. The surveying equipment dented the wing. Although there were no injuries, repairs to the plane and other expenses, such as down time, parts, and labor, totaled more than $114,000.
This claim illustrates the importance of having an established risk management program. Much like procedures that should be followed whenever design professionals visit a construction site, procedures should be established and followed whenever staff is engaged in employment activities, professional or otherwise. A policy of securing equipment used on a job site before leaving might have prevented this claim.
Premises & Operations Liability: A Slippery Floor Spells Trouble
A visitor walks into a design professional's office lobby, slips on the marble flooring after a rainstorm and breaks her ankle. The injured woman files a claim for her medical expenses resulting from her broken ankle. This example illustrates the importance of maintaining safe building premises, which includes placing proper warning signs for hazards, and paying prompt attention to hazardous situations that may increase the likelihood of an accident.
Commercial general liability does not cover the insured or the insured's employees. Such claims will likely be covered by workers' compensation insurance.
Business Operations: An Explosive Situation Reviewed
A manufacturer accidentally flushes flammable liquids into a city's sewer system. An explosion in the sewer results. City streets are torn up, utility services are suspended, and dozens of businesses in the vicinity of the explosion must close because access to the neighborhood has been cut off. The businesses have sustained a loss of use of that property, even though the explosion did not damage the property of these businesses. The manufacturer's CGL will cover claims of this kind, just as it will claims of direct physical injury.
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