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Small Business Large Expense – US Tort Claims

A new study from the U.S. Chamber of Commerce shows that small businesses paid $105.4B in 2008 for tort costs, with a third of it ( more than $33 BILLION, that is $33,000,000,000 !) out of their own pockets. According to the report, small businesses paid 81% of business tort liability costs but took in only 22% of revenue. The study, Tort Liability Costs for Small Businesses, also found that small businesses ($10M or less in annual revenue) paid, collectively, $35.6B of these costs out-of-pocket rather than through insurance. The study was conducted for the Chamber’s Institute for Legal Reform… Read More »Small Business Large Expense – US Tort Claims

U.S. Suspicious Claims Up 136 Percent

The number of hail loss claims filed with insurers increased by 61%. At the same time, the number of claims referred for suspected fraud increased by 136%, according to a National Insurance Crime Bureau report that examines both hail loss claims and hail loss questionable claims  for the period Jan. 1, 2006 through March 31, 2010. During this period, TX was the top state in both hail loss claims and hail loss claims. The top 10 states represented 75% of the total number of hail losses and 82% of the questionable claims.

“Your Work” Exclusion on CGL Policy

Insurance isn’t a warranty. It doesn’t replace faulty work or products, but it does cover the Bodily Injury (BI) and Property Damage (PD) caused by the faulty work or product. The exclusion of faulty work often referred to as “your work”. One of the most contested provisions of the commercial general liability (CGL) policy is the provision excluding coverage for property damage to the insured’s completed work. In 1986 Insurance Services Office, Inc. (ISO), revised the standard CGL policy form to include an exception to this exclusion if a subcontractor performed the work for the insured. This revision has become… Read More »“Your Work” Exclusion on CGL Policy