1. Products/Completed Operations Coverage
Created by Major adjusters

2. Products and Completed Operations Coverage
Will only pay if your product (you the toy maker) causes damage to your customer’s home
Products and Completed Operations Coverage covers the following losses due to:
products that you distributes
Products that you manufacture
Products that you purchase
Created by Major adjusters

3. Products-Completed Operations Aggregate:
The maximum amount the policy will pay to satisfy claims regarding Products and Completed Operations only.
This is the max an insurer will pay for claims due to losses caused by your products and services
General aggregate limit:
Coverage A: Premises and Operations Liability
Coverage B: Personal and Advertising Injury
Coverage C: Medical Payments to Others
Damage to Premises Rented by You
Created by Major adjusters

4. Created by Major adjusters
Per Occurrence Limit
For example, consider a CGL with a General Aggregate limit of $1,000,000, and a per occurrence limit at $250,000. If an individual makes a claim against the insured for $350,000 arising out of a single occurrence, the most the CGL will pay to satisfy that particular claim is $250,000, or the per occurrence limit.
A per occurrence limit is subject to the aggregate limit that precedes it. The CGL will pay any number of individual claims up to the per occurrence limit for each claim, until the aggregate limit is exhausted.
Created by Major adjusters

5. 3 Occurrence sub-limits
The Personal and Advertising Injury, Medical Payments, and Damages Done to Premises Rented coverages
Medical Payments is no-fault coverage for reasonable medical expenses.
If a shelf collapses on two customers, there will be a limit to how much is paid for medical expenses for each person. Whatever is paid to one of them will be taken out of the per occurrence limit, so there might not be enough to cover the expenses of both customers.
Created by Major adjusters

6. Created by Major adjusters
Like home owners liability policies, Products/Completed Operations Coverage covers which of the following?:
BAP/PIP
Coverage E/F
CPP/CGL
None of the Above
Hint *Covers Bodily Injury and Property damage
Created by Major adjusters

7. General Aggregate Per Occurrence Limit Per Occurrence Limit
Products and Completed Operations Aggregate
Per Occurrence Limit
General Aggregate
Per Occurrence Limit
The Products and Completed Operations Aggregate and the General Aggregate are two large tanks, which stand full at the beginning of the policy period. Each of these has pipes flowing to a separate per occurrence tank.
The per occurrence tank from the General Aggregate tank leads to the smaller Personal and Advertising Injury, Medical Payments, and Damage Done to Rented Premises tanks. Whatever flows out of these tanks to injured parties comes out of the larger tanks, and reduces the amount available for other claims.
Personal & Advertising Injury Limit
Medical Payments Limit
Premises Rented by You
Created by Major adjusters

8. Created by Major adjusters
Ron's Furniture has a CGL policy with a General Aggregate limit of:
$1,000,000, and
per occurrence limit of $250,000.
Its Products Aggregate limit is also $1,000,000 with a per occurrence limit of $250,000.
Occurrence on Premises
Injured customer sues for injury in store
Insurer pays for legal defense
Customer is awarded $450000
Insurance pays only $250000
Ron’s Furniture would pay remained
$750,000 left in General aggregate
A customer is injured by falling equipment in the store and sues Ron‘s Furniture for $500,000 to cover the cost of needed surgery. The “occurrence” took place on the premises of Ron’s Furniture, so his Coverage A -Premises and Operations coverage pays for legal expenses. The court sides with the claimant and awards her $450,000 in damages. Since Ron’s Furniture has a per occurrence limit of $250,000 on its CGL, the insurer would indemnify Ron for $250,000, and Ron’s Furniture would have to pay the rest. In addition, the General Aggregate Limit would be reduced to $750,000 for the remainder of the policy period.
Created by Major adjusters

9. Created by Major adjusters
Ron's Furniture has a CGL policy with a General Aggregate limit of:
$1,000,000, and
per occurrence limit of $250,000.
Its Products Aggregate limit is also $1,000,000 with a per occurrence limit of $250,000.
Injury due to product
Injured customer sues due to faulty stool
Insurer pays for legal defense
Customer is awarded $450000
Completed Operations pays only $250000
Ron’s Furniture would pay remained
$750,000 left in products-completed operations aggregate
Now, suppose a customer purchased a wooden bar stool manufactured by Ron’s Furniture. She takes the stool home, and a week later the bar stool collapses under her, causing injuries to her back. She sues for $450,000 in damages. We’d go through the exact same process in this scenario, but this time Ron’s Products and Completed Operations coverage would respond, because the “occurrence” transpired off the business premises, and the product was in the hands of a third party. Since, the case boils down to an issue of strict liability, Ron’s Furniture loses the case. His Products and Completed Operations Aggregate covers up to $250,000 of the judgment against Ron's Furniture, so that Aggregate is reduced by the amount of the claim. However, because the General Aggregate was not affected by this claim, that "tank" would remain at $1 million.
Created by Major adjusters