BROCHURE: UNDERSTANDING THE ISO PRODUCTS/COMPLETED OPERATIONS LIABILITY COVERAGE FORMS

(July 2018)

When a person is injured because of your products or services, you don't have any control over the ultimate cost of that injury. The person injured may be a young child, a blue-collar worker, a surgeon or a homeless person. The cost of the injury may be comparatively minor or run into the millions of dollars, depending on the person and the extent of his or her injuries. Do you have sufficient assets to pay such a loss? And if you do, should they be used to do so? If not, the Insurance Services Office (ISO) Products/Completed Operations Liability Coverage Forms are designed to help you protect your assets.

Consult the policy for definitions and limitations. The terms of this brochure do not represent contract terms. The policy is subject to company underwriting practices.

WHAT IS COVERED

The ISO Products/Completed Operations Liability Coverage Forms protect your assets by insuring your legal obligations due to damages that result from bodily injury or property damage arising from your products or completed operations. This coverage includes the costs related to lawsuits and other legal proceedings. The limits of insurance selected should be sufficient to handle serious injuries and the loss of earnings of the injured party. However, the coverage provided is subject to certain exclusions, conditions and definitions.

WHAT IS NOT COVERED

Every insurance coverage form or policy has certain exclusions and limitations. This is because the coverages are either needed by only specific types of businesses or the risk or exposure to loss is not considered insurable. Some of the Products/Completed Operations Bodily Injury and Property Damage Liability Exclusions are:

• Expected or intended injury
• Contractual liability
• Liquor Liability
• Workers Compensation and similar laws
• Employers Liability
• War
• Damage to certain types of property
• Damage to your product
• Damage to your work
• Damage to impaired property or property not physically injured
• Recall of products, work or impaired property
• Electronic data

Always review the coverage form carefully for other limitations and exclusion details.

CONDITIONS

Conditions are obligations you owe the insurance company as well as obligations the insurance company owes you when a loss occurs. The conditions in the ISO Products/Completed Operations Liability Coverage Forms are:

• Bankruptcy
• Duties in the event of occurrence, claim or suit
• Legal action against us
• Other insurance
• Premium audit
• Representations
• Separation of insureds
• Transfer of rights of recovery against others to us
• When we do not renew

ENDORSEMENTS

The ISO Products/Completed Operations Liability Coverage Forms provide very broad coverage. Many endorsements are available to use with these coverage forms that broaden, limit or exclude coverage.

Note to subscribers:

Related Article: ISO Products/Completed Operations Liability Coverage Forms Endorsements Checklist

REPRINT PERMISSION

PF&M subscribers in any manual or electronic form are permitted to reprint any portion of this brochure for their commercial insurance customers. Other uses require permission from The Rough Notes Company, Inc.