| Commercial General Liability Update | |||
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New definitions "Advertisement" definition change "Advertisement" means a notice that is broadcast or published to the general public or specific market segments about your goods, products or services for the purpose of attracting customers or supporters. The definition of "advertisement" has been modified to include notices published on the Internet or by other electronic means and also clarifies that the coverage pertains only to advertising material, not to other material (such as articles or opinion letters). The definition now reads: For the purposes of this definition: a. Notices that are published include material placed on the Internet or on similar electronic means of communication, and b. Regarding Websites, only that part of a Website that is about your goods, products or services for the purposes of attracting customers or supporters is considered an advertisement. The "personal and advertising injury" definition has been revised to include coverage for slander or libel and invasion of privacy suits arising from Internet or other electronic publications. Coverage Territory changes "E-commerce" The Coverage Territory definition for "e-commerce" has changed, and now allows coverage for worldwide offenses. A coverage enhancement is to be found in the redefinition of Coverage Territory. ISO has provided limited worldwide coverage for "personal and advertising injury" offenses that take place through the Internet or similar electronic means of communication. The suit must be brought within the U.S. (including its territories and possessions), Puerto Rico (U.S.), and Canada. "International waters" The Coverage Territory definition of "international waters" has also been changed. The definition now reads: b. International waters or airspace, but only if the injury or damage occurs in the course of travel or transportation between any places included in a. above; ... Clients involved in shipping goods by water or air will need to review their exposures in this area. The prior forms referred to shipping "to or from" (the U.S., its territories and possessions, Puerto Rico and Canada). The language has been clarified that the travel or transportation must be "between" those same described territories. Additional language for Property Damage definition "Electronic data" The question of coverage for causing damage to data has been answered by a revised definition of "property damage": For the purposes of this insurance, "electronic data" is not tangible property. The re-definition continues with an explanation of electronic data: As used in this definition, electronic data means information, facts, or programs stored as or on, created or used on, or transmitted to or from computer software, including systems and applications, software, hard or floppy disks, CD-ROMS, tapes, drives, cells, data processing devices or any other media which are used with electronically controlled equipment. An excluded loss example: The insured is accused of sending a virus to another party's computer, causing damage or erasure of data. The change intends to clarify ISO's position that the policy does not cover this type of loss. |
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Not only are policy forms, clauses, rules and court decisions constantly changing, but forms vary from company to company and state to state. This material is intended as a general guideline and might not apply to a specific situation. The authors, LunchTimeCE, Inc., CEfreedom, and Insurance Skills Center, and any organization for whom this course is administered will have neither liability nor responsibility to any person or entity with respect to any loss or damage alleged to be caused directly or indirectly as a result of information contained in this course.
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