CGL Fire Damage Legal Liability Coverage vs. the CP 00 40 Legal Liability Coverage Form

CGLFire Legal

Exclusions c. through n. do not apply to damage by fire to premises while rented to you or temporarily occupied by you with permission of the owner. A separate limit of insurance applies to this coverage as described in Section III – Limits Of Insurance.

Example“…that portion of the contract for a lease ofpremises that indemnifies any person or organization for damage by fire topremises while rented to you or temporarily occupied by you with permission ofthe owner.”

SectionI – Coverage A Exclusions [Excerpt].

j.Damage to Property

“Propertydamage” to:

(1)Property you own, rent, or occupy…

(3)Property loaned to you;

(4)Personal property in the care, custody or control of the insured;

Paragraphs(1), (3), and (4) of this exclusion do not apply to”property damage” (other than damage by fire) to premises, including the contents of such premises, rented to you for a period of 7 or fewer consecutive days. A separate limit of insurance applies to Damage To PremisesRented To You as described in Section III – Limits Of Insurance.

Example

Limits of Insurance.

Section III – Limits of Insurance.

6.Subject to Paragraph 5. above, the Damage To Premises Rented To You Limit isthe most we will pay under Coverage A for damages because of “propertydamage” to any one premises, while rented to you, or in the case of damageby fire, while rented to you or temporarily occupied by you with permission ofthe owner.

(1) Rentals longer than 7consecutive days: Coverage applies to fire damage to premises (not contents). Premisescan be rented or merely “temporarily occupied with permission of the owner” –i.e., no rent was paid.

(2) Rentals less than 7consecutive days: Coverage applies for losses to rented premises and contentsby causes other than fire, which are not otherwise excluded by Coverage A.

(3) The insured is legallyliable through tort and not solely by contract.

(4) Basic coverage limit is$100,000.

LegalLiability Coverage Form (CP 00 40)

A. Coverage

We will pay those sums that you becomelegally obligated to pay as damages because of direct physical loss or damage,including loss of use, to Covered Property caused by accident and arising outof any Covered Cause of Loss. We will have the right and duty to defend any”suit” seeking those damages.

1. Covered Property And Limitations

Covered Property, as used in this CoverageForm, means tangible property of others in your care, custody or control thatis described in the Declarations or on the Legal Liability Coverage Schedule.

Special Exclusions

The followingprovisions apply only to the specified Coverage Forms.

c. Legal Liability Coverage Form

(2) The followingadditional exclusions apply to insurance under this Coverage Form:

(a) ContractualLiability

We will not defendany claim or “suit”, or pay damages that you are legally liable topay, solely by reason of your assumption of liability in a contract oragreement.

Which is better: CGL or Legal Liability Coverage Form?

Alternatives