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 CGL policy for liability arising from an injury to an employee.

Insurance Law> General Liability Insurance> Harm Exclusions

(The CGL Policy Exclusion for Expected or Intended Injury)

Service of Process on Insurer

In order for an insured or any other party to sue an insurer, a court must obtain personal jurisdiction over the insurer. To accomplish this, an insurer must be served with process in a proper manner. There are several methods of serving an insurer.

INTERPLAY WITH CONSUMER PROTECTION STATUTES

The Federal Trade Commission Act, as amended, was one of the first laws to protect consumers from unfair and deceptive acts or practices in commerce. Additionally, most states have now adopted either the Uniform Deceptive Trade Practices Act1 or enacted similar statutes that protect consumers and other businesses from unfair and deceptive acts or practices in commerce. These consumer-oriented statutes are typically limited to the sale of goods or services and transactions for personal, family, household, and similar purposes. While there is a variance in these statutes as to what constitutes an unfair and deceptive trade act or practice, the following activities are typically prohibited under all consumer-oriented deceptive trade practice statutes: (1) passing off goods or services as those of another; (2) causing confusion or misunderstanding as to the source or approval of goods or services; (3) falsely representing that goods or services have sponsorship, approval, or benefits that they do not have; (4) disparaging the goods, services or business of another by false or misleading representations; and (5) engaging in any other conduct that creates a likelihood of confusion or of misunderstanding. Federal and state consumer-oriented laws usually allow both business competitors and consumers to sue a business or person that has engaged in a deceptive trade practice. In many states, aggrieved consumers may obtain treble damages and collect attorney's fees.

Denial of Claims

An insurer may deny a claim for a loss made by an insured in certain circumstances. However, the insurer must follow certain standards and guidelines when making such a denial.