 |
Actual Samples of Business Insurance Cases A window business sold and installed windows in a home. The windows leaked causing damage to the home. The leaks fit the insurance policy's definition of "accident" so the damage to the home was caused by an "occurrence" and so the damage was covered by the policy. The court awarded the insured $37,655. Potomac Ins. of Ill. v. Jonson Huang, 2002 U.S. Dist. LEXIS 4710. During the painting of a building, wind blew paint onto cars. The painter notified his insurance company. The insurance company argued the deductible applied to each car damaged and would not negotiate settlement with the car owners unless the painter agreed the deductible applied to each car. The painter did not agree and the insurance company refused to handle the car claims. The painter settled the claims of the car owners and sued the insurance company for bad faith. The painter claimed he lost business because of the delay in cleaning the cars. The jury agreed and awarded actual damages of $15,552 and punitive damages of $200,000. Tadlock Painting Company v. Maryland Casualty Company, 322 S.C. 498, 473 S.E. 2d 52 (1996). TermsCommercial Lines
Insurance coverage for businesses, commercial institutions, and professional organizations, as contrasted with personal insurance. Concurrent Causation
A loss caused by two or more perils. If the policy only covers one of the perils a court may rule the entire loss is covered.Conditions
The rights and duties of the insured and the insurance company.Coverage
The protection provided in an insurance policy.Declarations (DEC) Page
The page of an insurance policy that contains the policy number, effective and expiration dates, the amount and type of coverage, and deductibles. Deductible
An amount an insured must pay before the insurance company must pay benefits.Depreciation
The decrease in the value of property due to age, obsolescence, and wear and tear.Endorsement
A writing that provides additional coverage or takes away coverage.Effective Date
The date a policy begins providing coverage.Exclusion
Insurance policy terms which deny or restrict coverage.Expiration Date
The termination date of coverage as indicated on an insurance policy.Indemnity
Compensation for a loss or payment to restore the insured to his pre-loss position. Insured
The policyholder(s) or person covered by an insurance policy.Lapse
Termination of a policy for failure to pay the premium.Liability Insurance
Coverage for an insured's legal liability resulting from injuries to other persons or damage to their property.Limits
The maximum amount the insurance company will pay for a loss.Occurrence
An event that causes bodily injury or property damage.Peril
A type of risk.Policy
The insurance contract. Replacement Cost
The amount of money it takes to replace property with new property of like kind or quality.
|