The rest of the casualty section covers lines with their own logic. These are the facts exams return to.
Workers' compensation and employers liability
- Workers' compensation is no-fault: the employee shows only that the injury arose out of and in the course of employment, and benefits replace the right to sue the employer (CDI, Workers' Compensation guide).
- Employers liability, Part Two, protects the employer where an injury is not subject to the compensation laws, including third-party-over suits. The premium is estimated from payroll and finalized on actual payroll after expiration (State Fund sample policy; CDI).
Crime coverage (ISO CR 00 22)
- Employee theft pays whether or not the employee is identified.
- Theft is any unlawful taking; robbery requires bodily harm or threat; safe burglary requires marks of forcible entry.
- A discovery form pays loss discovered during the policy term, however long ago it happened.
Bonds
Contract bonds (bid, performance and payment) guarantee a specific contract, and a payment bond pays suppliers and subcontractors. A fidelity bond protects an employer against employee dishonesty. The obligee is the party protected; the principal is the party bound to perform (SBA, Surety bonds; CDI, Glossary).
Umbrella and excess
Pays above the underlying limits once they are exhausted, and can drop down for some losses the underlying policies do not cover; the self-insured retention applies only to those losses (ISO CU 00 01).
Professional liability and D&O
- Professional liability is usually claims-made: a retroactive date limits how far back covered acts reach, and a hammer clause caps the insurer if the insured refuses a recommended settlement. Tail coverage comes from the old insurer; prior acts (nose) coverage from the new one (specimen policy; Texas Department of Insurance).
- Directors and officers Coverage A pays an individual director or officer whom the organization has not indemnified (specimen D&O policy).
Practice property and casualty insurance questions for your state, with explanations and timed mock exams.