ProductsCompleted Operations Coverage Created by Major adjusters 1

Products/Completed Operations Coverage Created by Major adjusters 1

Products and Completed Operations Coverage • Will only pay if your product (you the toy maker) causes damage to your customer’s home • Products and Completed Operations Coverage covers the following losses due to: • products that you distributes • Products that you manufacture • Products that you purchase Created by Major adjusters 2

Products-Completed Operations Aggregate: • The maximum amount the policy will pay to satisfy claims regarding Products and Completed Operations only. • This is the max an insurer will pay for claims due to losses caused by your products and services • General aggregate limit: • • Coverage A: Premises and Operations Liability Coverage B: Personal and Advertising Injury Coverage C: Medical Payments to Others Damage to Premises Rented by You Created by Major adjusters 3

Per Occurrence Limit • For example, consider a CGL with a General Aggregate limit of $1, 000, and a per occurrence limit at $250, 000. If an individual makes a claim against the insured for $350, 000 arising out of a single occurrence, the most the CGL will pay to satisfy that particular claim is $250, 000, or the per occurrence limit. • A per occurrence limit is subject to the aggregate limit that precedes it. The CGL will pay any number of individual claims up to the per occurrence limit for each claim, until the aggregate limit is exhausted. Created by Major adjusters 4

3 Occurrence sub-limits • The Personal and Advertising Injury, Medical Payments, and Damages Done to Premises Rented coverages • Medical Payments is no-fault coverage for reasonable medical expenses. • If a shelf collapses on two customers, there will be a limit to how much is paid for medical expenses for each person. Whatever is paid to one of them will be taken out of the per occurrence limit, so there might not be enough to cover the expenses of both customers. Created by Major adjusters 5

Like home owners liability policies, Products/Completed Operations Coverage covers which of the following? : • BAP/PIP • Coverage E/F • CPP/CGL • None of the Above Hint *Covers Bodily Injury and Property damage Created by Major adjusters 6

Products and Completed Operations Aggregate General Aggregate Per Occurrence Limit Personal & Advertising Injury Limit Medical Payments Limit Created by Major adjusters Premises Rented by You 7

• Ron's Furniture has a CGL policy with a General Aggregate limit of: • $1, 000, and • per occurrence limit of $250, 000. • Its Products Aggregate limit is also $1, 000 with a per occurrence limit of $250, 000. • • • Occurrence on Premises Injured customer sues for injury in store Insurer pays for legal defense Customer is awarded $450000 Insurance pays only $250000 Ron’s Furniture would pay remained $750, 000 left in General aggregate Created by Major adjusters 8

• Ron's Furniture has a CGL policy with a General Aggregate limit of: • $1, 000, and • per occurrence limit of $250, 000. • Its Products Aggregate limit is also $1, 000 with a per occurrence limit of $250, 000. • • • Injury due to product Injured customer sues due to faulty stool Insurer pays for legal defense Customer is awarded $450000 Completed Operations pays only $250000 Ron’s Furniture would pay remained $750, 000 left in products-completed operations aggregate Created by Major adjusters 9