DEFINITIONS IN PLAIN ENGLISH

Commercial General Liability (CGL)  Basically if you are negligent you can be legally liable for injuries to other people or damage to their property.  This policy particularly suited to business operations providing broad coverage for claims made for bodily injury or damage to property of others for which the insured may become legally liable and which arise out of business operations.  Claim handling and adjusting expenses, cost of legal defense and prejudgment interest are normally payable in addition to the liability limits.

Tenant's Legal Liability (TLL) This coverage protects you against legal liability for damage to premises you lease or rent caused by the perils insured.

Non Owned Auto (NOA)  A policy which protects the insured against Third Party claims arising out of some other person using their automobiles in the business of the insured.

Personal and Advertising Injury It’s the same concept as slander and libel.  Basically anything derogatory aimed at a third party (either by saying it or writing it) which would cause the third party to lose their good name or lose financially in some way.

Each Occurrence Limit  The limit of liability stated in the declarations as applicable to "each occurrence" is the limit of the company's liability for all damages, direct and consequential, because of all bodily injury, property damage or damage sustained by one or more persons or organizations as the result of any one occurrence.  Bodily injury and property damage arising out of continuous or repeated exposure to substantially the same general conditions ... shall be considered as the result of one and the same occurrence.

Aggregate Liability Limit  Firstly an insurance policy Limit is the most money the policy will pay out in the event of a claim.  For example, when a $2 million policy pays out $2 million in damages on your behalf, it has reached its "limit" and will pay no more.

When a policy reaches it limit the insurance company's obligation to defend you or pay for your legal defense may also end.

When people think of an insurance policy's Limit, they normally focus on the "Each Occurrence Limit" as indicated above.

The "Aggregate Limit" is the most the policy will pay as a result of all occurrences during the policy term (usually one year).  In other words, the Aggregate Limit is like an annual cap on policy payments.

General Liability Aggregate Limit This would be the total amount of liability coverage offered from the CGL, Personal/Advertising Limit, Tenants Legal Liability, and Non-Owned Automobile Liability

Higher Limits:  To protect your business against catastrophic claims, you may need more than $2 million per occurrence in protection.  This can be achieved by buying higher limits or by purchasing an "Umbrella" Liability policy.

Umbrella Liability:  An insured desiring Liability limits in excess of the primary General Liability 2,000,000 Per Occurrence policy can purchase an Umbrella Liability policy.  Commercial Umbrella policies are available in $1,000,000. increments and normally cost less than the primary General Liability layer.  If an insured desired a $5,000,000. Per Occurrence limit, the purchase of a $3,000,000. Umbrella policy would be required.  The primary $2,000,000. Per Occurrence General Liability policy plus the $3,000,000. Umbrella would bring the insured's Per Occurrence limit to $5,000,000.

Umbrella Aggregate limits equal the Umbrella policy's Per Occurrence limits.  In other words, a $3,000,000. Per Occurrence Umbrella policy has a $3,000,000. Aggregate limit.  The policy's maximum obligation during the policy term is $3,000,000.

Negligence  When the insured does not use the degree of care expected from a prudent and reasonable person.

Deductible  The amount the insured must pay, per claim, towards the total amount of the claim.