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15.8 Section II Exclusions

Exclusions Applicable to Business Liability Coverage

Most exclusions that apply to Business Liability coverage are standard exclusions commonly found in commercial liability policies. These include:

ExclusionExclusionExclusion
Expected or intended injuryContractual liabilityLiquor liability
Workers’ CompensationEmployers LiabilityPollution
Criminal actsTransportation of mobile equipmentProfessional services
Damage to the insured’s propertyDamage to Your ProductDamage to Your Work
Damage to impaired property or property not physically injuredRecall of products, work, or impaired propertyDamages arising out of the loss of electronic data
Use of an aircraft, auto, or watercraft, including damages during loading or unloadingRecording and distribution of material or information in violation of the lawWar

The expected or intended injury exclusion does not apply to bodily injury resulting from the use of reasonable force to protect persons or property.

The contractual liability exclusion does not apply to liability the insured assumes under an insured contract.

Personal and Advertising Injury

The policy excludes coverage for personal and advertising injury that:

  • Is caused by an insured who knows the act will violate another person's rights.
  • Arises from oral or written material published by or at the direction of an insured who knows it is false.
  • Arises from liability assumed under a contract or agreement, unless the liability would exist even without the contract.
  • Arises from a breach of contract.
  • Arises from the failure of goods, products, or services to conform to statements of quality or performance made in an advertisement.
  • Arises from an incorrect statement of the price of goods, products, or services in an advertisement.
  • Arises from an electronic chatroom or bulletin board the insured owns, hosts, or controls.
  • Is committed by an insured whose business is advertising, broadcasting, publishing, or web design.

Exception

Like the Commercial General Liability (CGL) policy, the Businessowners Policy (BOP) includes an exception for the insured's fire damage legal liability, subject to a separate limit of insurance. This exception provides coverage for property damage caused by fire or explosion to property the insured rents.

Exclusions Applicable to Medical Expenses Coverage

Medical Payments coverage does not apply to bodily injury:

  • Sustained by any insured, except a volunteer worker.
  • Sustained by a tenant in the portion of the premises the tenant rents.
  • Sustained by a person hired to perform work for the insured or the insured's tenant, such as an independent contractor.
  • For which benefits are payable under Workers' Compensation or a similar law.
  • Sustained while participating in physical exercise or athletic activities.
  • Included within the products-completed operations hazard.
  • Otherwise excluded under Business Liability coverage.

Nuclear Energy Liability Exclusion

Section II does not provide coverage for:

  • Bodily injury or property damage covered by the insured's Nuclear Energy Liability policy.
  • Bodily injury or property damage resulting from nuclear material for which the insured is entitled to indemnification by the United States government.
  • Bodily injury, medical expenses, or property damage resulting from nuclear material and arising out of the operation of a nuclear facility by the insured.