Rural Water - Quarter 3, 2017 - 43

INSURANCE

Commercial General
Liability Coverage Basics

d

BY R. CHRISTOPHER BARGER, CPCU, CIC, AIM
NATIONAL PROGRAM DIRECTOR, UTILITY SERVICES, THE CINCINNATI INSURANCE COMPANY

During my discussions with
water utility professionals, questions often
arise about commercial general liability
coverage and why certain claims aren't
covered by insurance. My answer usually
begins with the disclaimer that every claim
is different and adjusted on its own merits,
and many factors come into play that can
affect how insurance coverage may apply.
In each instance, an investigation takes
place to determine whether coverage
exists. Let's look at a realistic, hypothetical
claim scenario to see how this might apply.
On a blistering hot day, the kind where
heat waves coming off the pavement
appear to turn it to liquid, a water main
breaks and thousands of gallons of water
gush into the street. You immediately begin

emergency action protocols and your crew
expertly repairs the line in record time.
Two weeks later, a lawsuit arrives alleging
extensive water damage to expensive
landscaping-including a rare specimen of
plant-and it was caused by your utility.
The first thing you do is call your
insurance agent and ask, "Am I covered?"
That is not an easy question to answer.
Sometimes this type of claim is covered
and sometimes it isn't. Understanding
liability, negligence and how insurance
works can help reduce potential frustration
with this seemingly vague answer.
Your CGL policy is a legal contract
between you and your insurance company.
At its most basic level, your policy may
state that the insurance company, "will

pay those sums that [you] become legally
obligated to pay as damages because of
bodily injury or property damage to which
this insurance applies." To determine if your
insurance will pay for those rare plants,
your claims representative considers:
1.	 Are you legally liable? In simple cases,
this is usually determined by the claims
investigation process. In more complex
cases, courts make this decision.
2.	 Does insurance apply? This question
is usually easier to answer. Your policy
includes multiple coverage provisions
and exclusions, so any existing
coverage is included in the policy
language. If there is coverage, many
CGL policies provide for your legal
defense costs.

RURAL WATER

43



Table of Contents for the Digital Edition of Rural Water - Quarter 3, 2017

From the President
Surviving Hurricanes
Emergency Preparedness
Indiana Teamwork During a Flood Emergency
Rates and Long-Term Sustainability
Technology: Ammonia – A Growing Problem with a Practical Solution
Emergency Management: Biological Wastewater Treatment Toxicity
Insurance: Commercial General Liability Coverage Basics
A Day in the Life of a Circuit Rider
Regulatory Update
Case Study: Installing Granular Activated Carbon Today to Prevent Regulatory Issues in the Future
Cleared for Takeoff
Up the Creek: Birdfeeder Politics
Index to Advertisers/ Advertisers.com
From the CEO
Rural Water - Quarter 3, 2017 - intro
Rural Water - Quarter 3, 2017 - cover1
Rural Water - Quarter 3, 2017 - cover2
Rural Water - Quarter 3, 2017 - 3
Rural Water - Quarter 3, 2017 - 4
Rural Water - Quarter 3, 2017 - 5
Rural Water - Quarter 3, 2017 - 6
Rural Water - Quarter 3, 2017 - 7
Rural Water - Quarter 3, 2017 - 8
Rural Water - Quarter 3, 2017 - 9
Rural Water - Quarter 3, 2017 - 10
Rural Water - Quarter 3, 2017 - From the President
Rural Water - Quarter 3, 2017 - Surviving Hurricanes
Rural Water - Quarter 3, 2017 - 13
Rural Water - Quarter 3, 2017 - 14
Rural Water - Quarter 3, 2017 - 15
Rural Water - Quarter 3, 2017 - 16
Rural Water - Quarter 3, 2017 - 17
Rural Water - Quarter 3, 2017 - Emergency Preparedness
Rural Water - Quarter 3, 2017 - 19
Rural Water - Quarter 3, 2017 - 20
Rural Water - Quarter 3, 2017 - 21
Rural Water - Quarter 3, 2017 - 22
Rural Water - Quarter 3, 2017 - 23
Rural Water - Quarter 3, 2017 - 24
Rural Water - Quarter 3, 2017 - 25
Rural Water - Quarter 3, 2017 - 26
Rural Water - Quarter 3, 2017 - Indiana Teamwork During a Flood Emergency
Rural Water - Quarter 3, 2017 - 28
Rural Water - Quarter 3, 2017 - 29
Rural Water - Quarter 3, 2017 - 30
Rural Water - Quarter 3, 2017 - Rates and Long-Term Sustainability
Rural Water - Quarter 3, 2017 - 32
Rural Water - Quarter 3, 2017 - 33
Rural Water - Quarter 3, 2017 - 34
Rural Water - Quarter 3, 2017 - Technology: Ammonia – A Growing Problem with a Practical Solution
Rural Water - Quarter 3, 2017 - 36
Rural Water - Quarter 3, 2017 - 37
Rural Water - Quarter 3, 2017 - 38
Rural Water - Quarter 3, 2017 - Emergency Management: Biological Wastewater Treatment Toxicity
Rural Water - Quarter 3, 2017 - 40
Rural Water - Quarter 3, 2017 - 41
Rural Water - Quarter 3, 2017 - 42
Rural Water - Quarter 3, 2017 - Insurance: Commercial General Liability Coverage Basics
Rural Water - Quarter 3, 2017 - 44
Rural Water - Quarter 3, 2017 - A Day in the Life of a Circuit Rider
Rural Water - Quarter 3, 2017 - 46
Rural Water - Quarter 3, 2017 - Regulatory Update
Rural Water - Quarter 3, 2017 - 48
Rural Water - Quarter 3, 2017 - 49
Rural Water - Quarter 3, 2017 - 50
Rural Water - Quarter 3, 2017 - Case Study: Installing Granular Activated Carbon Today to Prevent Regulatory Issues in the Future
Rural Water - Quarter 3, 2017 - 52
Rural Water - Quarter 3, 2017 - Cleared for Takeoff
Rural Water - Quarter 3, 2017 - 54
Rural Water - Quarter 3, 2017 - Up the Creek: Birdfeeder Politics
Rural Water - Quarter 3, 2017 - 56
Rural Water - Quarter 3, 2017 - 57
Rural Water - Quarter 3, 2017 - Index to Advertisers/ Advertisers.com
Rural Water - Quarter 3, 2017 - 59
Rural Water - Quarter 3, 2017 - 60
Rural Water - Quarter 3, 2017 - From the CEO
Rural Water - Quarter 3, 2017 - 62
Rural Water - Quarter 3, 2017 - cover3
Rural Water - Quarter 3, 2017 - cover4
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