Insurance Law Lesson 1: The Type of Policy Makes a Difference

There is no one-size-fits-all in insurance. Each person and entity faces specific risks. Different types of policies address the different types of risks.

Some types of insurance are required by law. Some have terms that are required by. Some are highly regulated (like health insurance) and some are basically free market contracts.

The laws pertaining to a worker’s compensation policy can be quite different from those pertaining to a standard commercial general liability (called “CGL”) policy.

Moreover, many types of insurance have common terms from policy to policy. By telling me that we are dealing with CGL, I can tell you with 99% certainty that there is an exclusion for injury arising out of the ownership, maintenance, or use of an “auto,” boat, or airplane.

Another type of policy may have the same or similar term, but it actually means something different. Is the BI claim for “bodily injury” (liability policies) or for “business interruption” (first-party coverage)? Knowing what kind of policy puts me in the right frame to address the question.

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