The standard comprehensive general liability policy insures a business against liability arising from personal injury or property damage suffered by a third party. Various exclusions are included in the CGL policy, including Exclusion J -- Damage to Property, that are designed to limit coverage to third party injury or damage.
The aviation industry is highly regulated. Exclusions in aviation insurance policies relating to violation of such regulation have raised special issues.
Business interruption insurance is a form of property insurance that reimburses a business for losses that arise due to damage to the property of the business that reduces the ability of the business to continue its operations. Contingent business interruption insurance is also available to provide coverage for business continuation losses occurring to a business when property of another business is damaged or destroyed.
Insurance agents act on behalf of one or more insurance companies. That relationship between the insurance agent and the insurance company provides authority for the agent to act for and bind the insurance company. Insurance brokers, on the other hand, represent insurance purchasers rather than insurance companies even though insurance brokers may receive their commissions from insurance companies. Insurance brokers do not have authority under principal-agent or employer-employee theories to bind the insurance companies that provide the policies insuring companies or individuals.
Reinsurance is the process by which an insurance company shares the risk that it assumes when it issues an insurance policy. For example, an insurance company that issues a $1 million life insurance policy may reinsure or have other insurers assume $900,000 of the risk. The insurance company issuing the policy thus "cedes" most of the risk to one or more reinsurers.
