Liability Claims 101

Claim Examples (non entertainment related)

Commercial General Liability insurance protects business owners against claims regarding Bodily Injury, Property Damage, and Personal and Advertising Injury.

Bodily Injury Example 1

Krista owns a hair salon and mops the floors before the business opens.  After she finishes mopping her ceramic floor they remain damp and she forgets to put up her ‘wet floors sign’ to warn customers of the wet and slippery conditions.  That morning a customer enters her place of business and slips and breaks their leg.  Her customer’s broken leg is a perfect example of a customer’s bodily injury claim against Krista’s hair salon.  Krista’s customer can now sue for damages, medical costs, and pain and suffering.  Coverage would extend in this example if Krista had purchased General Liability Insurance.

Property Damage by Auto Example 1

Mike owns a purified water delivery service that provides purified water to several companies in the area.  One day one of the drivers for the company was making a delivery to one of their customers and backs his truck up too far and hits the corner of the building.  The truck causes severe property damage to the brick on the exterior of the building.  Mike’s Company is now liable for the damages caused to the building by his truck.  Mikes liability insurance policy would protect him from these types of damages caused by his company’s negligence.  Coverage would extend in this case if Mike’s company had purchased Commercial Auto Insurance.

Advertising Injury Example 1

Steve owns an awning company in the Pittsburgh area.  He decides to place an ad in the local newspaper to see if he can strum of some business and compete with some of the other awning companies in the area.  In Steve’s ad he accidentally and unintentionally placed a picture that could resemble a ‘body part’ to some viewers.   Steve’s company received complaints and lawsuits due to the delicate nature of the photo.  Steve’s awning company may face an advertising claim if someone in the public finds the picture offensive enough to seek damages.  If Steve’s awning business has purchased the correct liability insurance it will protect his company from this advertising claim.

Bodily Injury Example 2

A local hardware store has just completed restocking their plumbing department.  A customer by the name of Kirk visits the hardware store to purchase some new plumbing for his bathroom remodeling project.  A couple of pipes in this aisle fell off the shelves on to the floor right in Kirks walking path.  Kirk did not see the pipes in which he stepped on one of them and caused him to flip backward and landing on his back.  Kirk suffered a lower back injury and filed a lawsuit against the hardware store for his injuries.  The hardware store did have liability insurance in place which covered Kirk’s medical expenses as well as his pain and suffering.

Property Damage Example 2

Alex owns his own company that specializes in remodeling kitchens.  After arriving at a new job site, one of Alex’s employees decided to get a glass of drinking water from the sink that had no drain hooked up and failed to turn off the water after filling his glass.  Unfortunately the water ended up over flowing on to the floor and continued to seep into the finished basement causing damage to the floors and walls of both the kitchen and basement.  The homeowner sued Alex’s company for $75,000 in damages caused by the negligence of Alex’s employee.  If Alex purchased the correct liability insurance this $75,000 claim would be covered under his policy.

Are You Covered?

Most insurance companies specifically exclude certain losses. Be sure to get informed by clicking some of the examples of common exclusions.

  • Flood
  • Mine Subsidence
  • Valuable Items and Property
  • Sewer or Sump Pump Back Up
  • Home Day Care or Business

Holman & James LLC
700 River Avenue, Suite 433
Pittsburgh, PA 15212
P: 412-323-2300 | F: 412-202-4400

EST. 1957