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a.Ownership and maintenance of the premises- liability due to a condition in or arising from the premises itself. For example, a wet floor in a store could cause someone to slip and fall.
b.Conduct of business operations- liability due to business operations. For example, McDonald’swas successfully sued when a woman burned herself after she spilled an extremely hot cup of coffee on herself. 2.Product liability is the legal liability for products of manufacturers, wholesaler or retailers to people who incur bodily injuries or property damage from a defective product. It arises from the following: a.Negligence- damage or injury that is a result of defective products b.Breach of warranty-the product does not do what it is intended to do. The warranty is implied when the product is purchased c.Strict liability-a manufacturing defect that causes injury or damage even when the product does what it is supposed to do. For example, a product catches fire due to a design modification 3.Completed Operationscovers faulty work performed away from the premises after the work or operation is completed. This coverage is used by plumbers, electricians, and contractors for their own business operations and also for work they perform as installers4.Contingent Liabilityarises from work done by independent contractors and covers the company who subcontracted the work 5.Contractual Liabilitycovers situations where a business firm assumes a legal liability of another party in a written or oral contract. For example, a tenant assumes legal liability when renting the entire building. A hold-harmless clausewritten into a contract releases one party from all legal liability such as when the owner of rented equipment is not held liable if the equipment causes a loss. -General Liability coverage has much exclusion that is often covered by comprehensive general liability coverage. The exclusions can generally be covered by separate policies: 1.Advertising injury or personal injuryor personal and advertising injurycoverage deals with slander, libel, persecution, defamation of character, false arrest, detention or imprisonment (when, for example, a retailer wrongly accuses someone of shoplifting), malicious prosecution, violation of the right of privacy, and unlawful entry or eviction. 2.Environmental liabilitycovers pollution from smoke, acid, fumes, toxic chemicals, waste materials, and underground storage tanks. The parties responsible are obligated to clean up and if they don’t, the government can clean it up and sue the parties responsible for the pollution. Policies often distinguish between gradual pollution, which occurs over many years, and sudden pollution3.Fire Legal Liabilityoccurs when a fire causes a loss to another party’s property. It is neededbecause there is generally fire exclusion for property in the care, custody, or control of the insured when, for example, premises are rented. If a tenant or an employee of a tenant causes a fire, the