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17.11 Other Coverage and Options

Ohio Commercial Insurance Joint Underwriting Association​

The Ohio Commercial Insurance Joint Underwriting Association (OCIJUA) is a nonprofit, unincorporated association that helps place commercial insurance risks in Ohio, including commercial liability and commercial multi-peril coverage. Membership includes all insurers authorized to write direct liability insurance in Ohio. The association is administered by a Board of Governors under the supervision of the Superintendent of Insurance.

An applicant may qualify for coverage through the Ohio Commercial Insurance Joint Underwriting Association (OCIJUA) if they provide evidence of three coverage denials from insurers, demonstrating that the Ohio Commercial Market Assistance Plan was unable to obtain coverage. The request must be submitted in writing by a licensed Ohio insurance agent or broker.

Policies are issued for a 1-year policy term.

The Ohio Commercial Insurance Joint Underwriting Association (OCIJUA) must submit all policy forms to the Superintendent of Insurance for approval at least 30 days before they are used. A policy form is deemed approved if the Superintendent does not disapprove it within the 30-day review period. All member insurers participate in the Association in proportion to the direct liability premiums each insurer writes compared with the total direct liability premiums written by all Association members.

Specialty Liability Insurance​

Identity Fraud Expense Coverage​

In addition to the Identity Fraud Expense Coverage Endorsement available for Homeowners policies, similar identity fraud endorsements are also available for commercial insurance policies.

The Identity Fraud Expense Coverage Endorsement can be added to a Businessowners (BOP) policy to provide an Additional Coverage for expenses the named insured incurs as a direct result of identity fraud. Identity fraud is the knowing transfer or use of a business's means of identification without lawful authority and with the intent to commit an unlawful act that violates federal law or is a felony under another applicable jurisdiction. Covered expenses include:

  • Advertising and public relations expenses
  • Notary fees
  • The cost of credit reports
  • Lost income up to $250 per day, subject to a maximum of $10,000
  • Loan application fees
  • Reasonable attorney fees
  • Long-distance telephone charges

The Identity Fraud Expense Coverage Endorsement provides:

  • A $25,000 Identity Fraud Expense Aggregate Limit for the total of all covered expenses first discovered during the policy period.
  • A separate $5,000 aggregate limit for advertising expenses incurred to restore the business's reputation following an identity fraud event.

These limits are in addition to and do not reduce any other limits provided under the Businessowners (BOP) policy.

Coverage under the Identity Fraud Expense Coverage Endorsement is subject to a $250 deductible.

Aviation Insurance​

Aircraft Hull and Liability​

Basic Aircraft Hull and Liability insurance protects against physical loss and liability exposures associated with aircraft operations, including:

  • Hull (Physical Damage): Covers physical loss of or damage to the aircraft.
  • Owners, Operators, Passengers, Baggage, and Cargo: Provides liability coverage for covered claims involving persons or property on the aircraft.
  • Medical Payments: Covers medical expenses for passengers, pilots, and crew members.
  • Third-Party Liability: Covers liability for bodily injury or property damage to persons or property outside the aircraft.

Hull coverage may be written on either a named perils or open perils basis. Coverage is typically divided between losses occurring:

  • While the aircraft is in motion
  • While the aircraft is not in motion

If the aircraft is repairable, the stated (agreed) value of the aircraft is used to determine whether the loss is treated as a repairable loss or a total loss.

Aviation insurance includes an implied warranty that:

  • The aircraft is airworthy and fit to transport passengers or cargo.
  • The pilot is properly licensed and approved to operate the aircraft.

Drone Coverage​

The two most common types of drone insurance are:

  • Drone Liability Insurance: Covers third-party bodily injury and property damage claims arising from drone operations.
  • Hull Insurance: Covers physical loss of or damage to the drone itself.

Commercial General Liability Insurance​

Contingent Liability Exposure​

The primary commercial liability exposures businesses face include:

  • Premises and operations
  • Products
  • Completed operations
  • Contractual liability

Some businesses also have contingent liability exposure. Contingent liability is liability that may arise from an uncertain future event. In insurance, it most commonly applies when a business is vicariously liable for the acts or omissions of another party, such as an independent contractor or subcontractor.

An independent contractor is an individual or business hired under contract to perform work or services for another party. An independent contractor may hire a subcontractor, who is a specialized individual or business engaged to complete a specific portion of the contractor's work.

Owners and Contractors Protective (OCP) Liability​

Owners and Contractors Protective (OCP) Liability insurance protects a project owner or general contractor when they are held legally liable for the actions of a contractor they hired, such as a subcontractor. Although the project owner or general contractor is the named insured, the hired contractor is responsible for purchasing the policy.

Example

ABC Contracting, a general contractor, hires P's Plumbing to perform plumbing work on an office building under construction. If P's Plumbing damages the building frame or accidentally injures another worker while performing the work, ABC Contracting may be held legally liable for those actions.

To protect ABC Contracting, P's Plumbing should purchase an Owners and Contractors Protective (OCP) Liability policy, with ABC Contracting named as the insured.

Pollution Liability Coverage​

The Pollution Exclusion in the Commercial General Liability (CGL) policy excludes coverage for bodily injury or property damage arising from the actual, alleged, or threatened discharge, dispersal, seepage, migration, release, or escape of pollutants. Pollutants include any solid, liquid, gaseous, or thermal irritant or contaminant, such as:

  • Smoke
  • Vapor
  • Soot
  • Fumes
  • Acids
  • Alkalis
  • Chemicals
  • Waste

Insureds may obtain pollution coverage by purchasing a separate pollution liability policy or a pollution coverage endorsement.

Pollution Liability Coverage Form (Designated Sites)​

The Pollution Liability Coverage Form provides coverage on a Claims-Made basis. Coverage applies to compensatory damages the insured becomes legally obligated to pay because of bodily injury or property damage caused by a pollution incident originating from:

  • An insured site listed in the Declarations, or
  • A waste facility located within the coverage territory

The policy also reimburses the insured for off-site pollutant clean-up costs when the clean-up is required by governmental order or direction.

Coverage under the Pollution Liability Coverage Form is subject to:

  • An aggregate limit for all covered claims.
  • A per-pollution incident sublimit that applies to each covered pollution event.
  • A deductible, as shown in the Declarations, which applies to covered losses.

The Pollution Liability Coverage Form does not provide coverage for:

  • Property damage to the insured's own property
  • Clean-up costs for pollutants located on the insured's own premises
  • Bodily injury, property damage, or environmental damage arising from:
    • Offshore facilities
    • Acid rain
    • Oil, gas, mineral, water, or geothermal wells
    • Failure to comply with environmental laws

Pollution Liability Limited Coverage Form (Designated Sites)​

This coverage form provides the same protection as the Pollution Liability Coverage Form, except that clean-up costs are not covered unless the clean-up is required by statute or ordered by a governmental authority.

Pollution Extension Endorsement​

The Pollution Liability Coverage Endorsement removes the Pollution Exclusion from the Commercial General Liability (CGL) policy, restoring coverage for the insured's pollution liability and pollution clean-up costs. A limited version of the endorsement is also available, which restores pollution liability coverage but does not cover clean-up expenses.

Commercial Crime Endorsements​

Lessees of Safe Deposit Boxes​

This endorsement provides coverage for losses resulting from:

  • Theft, disappearance, or destruction of the insured's securities
  • Burglary, robbery, or vandalism involving the insured's other property

Coverage applies only if the securities or other property are stored in a safe deposit box or vault located within a depository premises, such as a financial institution.

This endorsement does not provide coverage for money.

Money is not covered under this endorsement.

Securities Deposited with Others​

This endorsement provides coverage for the theft, disappearance, or destruction of securities:

  • While in transit by a custodian to or from the custodian's premises
  • While inside the custodian's premises
  • While on deposit at the custodian's premises

There is no coverage for the insured's securities while they are on the insured's premises.

Safe Depository​

The Safe Deposit Box Liability Endorsement is designed for businesses other than financial institutions that provide safe deposit box services to customers.

The endorsement provides:

  • Legal liability coverage for customers' property stored in a safe deposit box or vault on the named insured's premises
  • Defense coverage against lawsuits brought by customers for damage to their property
  • Optional direct damage coverage for customers' property resulting from robbery, burglary, destruction, or damage

Bonds​

Nature of Bonds​

A bond is typically issued for a specified term, usually 1–4 years, and terminates upon expiration unless it is renewed. The bond's limit of liability is the amount stated on the bond.

Fidelity Bonds​

Fidelity bonds protect employers against losses caused by the dishonesty, fraud, or misconduct of employees. Several types of fidelity bonds are available, including individual bonds and commercial blanket bonds, to meet the needs of different businesses.

Financial institution bonds are fidelity bonds designed specifically for financial institutions, such as banks. They provide coverage for losses resulting from:

  • Employee dishonesty, including employee theft
  • Other crime losses, such as robbery
  • Funds transfer fraud and similar losses that may affect customers

Discovery bonds are fidelity bonds that cover losses discovered during the bond period, regardless of when the dishonest act occurred.