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Indemnity vs. Liability Policies

Indemnity policies

In indemnity policies, an insured's cause of action against an insurer arises when the insured suffers a money loss in order to discharge his liability (e.g., he pays a judgment). Thus, a...

Automobile Insurance Options

Standard automobile insurance policies provide both required and optional coverages. In most states, auto policies must contain liability insurance that provides for payment of damages caused by the policyholder. Coverage for damages to the...

Drop Down of Excess Coverage If the Primary Insurer Becomes Insolvent

Although insolvency of an insurer may be considered a relatively rare event, the effect of such insolvencies on policyholders can be substantial. Most jurisdictions have insurance guaranty associations that will provide some coverage in place of...

The Employers Liability Exclusion to the CGL Policy

There are numerous exclusions to the coverage provided to businesses in a comprehensive general liability or CGL policy. Exclusion E -- Employers Liability -- in the standard form CGL policy results in a lack of coverage under...

The Meaning of an Insurance Binder

A binder in the insurance industry is a temporary agreement of the insurance company to provide coverage while it seeks to issue a policy based upon the representations made in the application for insurance. The binder may be issued by an...