Commercial general liability provides coverage for personal injury and property damage that result from business operationss. Commercial liability coverage has different coverage such as damage to bodily injury. The insurance policy allows businesses to operate despite injury claims. Although there are cases where the state laws take prevalence when determining the amount of money to be paid to the complaints, it helps to shield the business from any unforeseen circumstances. However, the policy does not consider standard coverage and therefore, in cases where the amount paid against a claim is higher than the amount insured, the extra costs are paid by the insured. The policy provisions of commercial general liability. In the interpretation of an insurance policy the determining factor is usually in the interpretation of the words used. In the court case, the analysis of language policy is based on the intent of the policy and in cases often ambiguity the plain meaning is what is usually interpreted. This is the cause of the differences that exist during the interpretation of terms relating to an insurance policy by the courts.
There are several lawsuits that have been filed against pharmaceutical manufacturers to recover from the damage caused by the opioid epidemic. In an apparent case was the one covered in the insurance journal for the increased use of highly addictive opioids’ to treat chronic pain and took a central role in the promotion of the drug. The company overemphasized the benefits of the drug while disregarding the effects of the same drug. The doctor after distancing himself from the companies manufacturing the drug claims that given the drawbacks of the drugs, they should have been described to patients with no allergic reaction to the drug. As a result, the worldwide advertisement which majorly overemphasized the benefits of the drug makes the company be at risk of being culpable for the health and social effects the drug has on the patients. The issue resulted in a lawsuit because the complaints felt that the manufacturing company was responsible for informing the users of the drugs the effects that the drugs had on the patients.
Commercial general liability policies have comprehensive coverage that deals with different kinds of opioid-related issues. The policies under the category usually cover the amount to be paid due to bodily injury caused by the continuous exposure to drugs that harmful conditions. For the case of the doctor provisions of the policy will apply depending on the definition of the occurrence of the act. The advertisements were done with no intention of causing bodily harm from resulting from the abuse of the drug. The advertisers of the drugs conducted the exercise to raise the sale of the drugs.
The bodily damages resulting from the drugs are defined from the social and health effects that the drugs have on the consumers. The economic impact of the drugs are extensively covered in the policy. Most commercial general liabilities have contained policy languages stating that fully cover for economic damages. The deliberate efforts by the company to use deceptive marketing campaign to increase the sales of the drugs are not covered under the commercial general liability policy. Their aim of the campaign was to increase the sales of the product and as such did not constitute one to would cause bodily harm to the abusers. Bodily injuries can either be overdose resulting from the use of the drug, addiction, death and disability resulting from the use of the drug.
Plaintiffs before compensation must prove that damage caused by the insured was not as a result of the accident, but they were due to the deliberate efforts of by the company. the policy language of liberty insurance states that the Insurer will pay on behalf of the “Insured” all damages’ the “Insured” becomes legally liable to pay by reason of liability imposed by law or assumed by the “Insured” under an “insured contract” for “bodily injury” or “property damage” covered by this Policy that takes place during the “policy period” and is caused by an“occurrence”.Thus, the determination of whether the coverage can be applied is usually determined by a court of law in most circumstances. Both parties the insurer and complaint are usually expected to demonstrate the whether the alleged bodily injuries are as a result of an unexpected event. According to liberty insurance an occurrence is normally used to imply that damages caused due to fortuitous event.
Opioid cases are basically covered under bodily injury and property liability which facilitates payment of any legal damages that might result from bodily injuries and damaged property. In situations where the issue is taken to court, the insurer is also under the obligation of providing legal defense on behalf of the insured. Through this the company is able to be insured against liability risks that might result from product operations for business involved in the manufacture of and either wholesale of or the retail of products. It’s therefore necessary that businesses have enough commercial liability insurance because of the increasing commercial liability law suits.
In most lawsuits regarding opioids that are presented to court, the main point of argument is usually the on the cause of the damage. Occurrence has been defined by the insurance policy languages as the one that should have been deliberate. If the causes to bodily injuries cannot be proved to be as a result of the negligence of the manufactures then the insurance cover with hold. Situations where damages caused are not intentional then the coverage does not apply. Although the interpretation of the occurrence has been interpreted different in certain occasions, commonly meaning of the occurrence is usually as of an expected act. The
Offering insurance extension is crucial in getting clients who needs to apply for coverage to damages which are not provided under the applied policy. Extended coverage creates room for other policies which are not provided in the initial policies purchased. Those willing to apply for an extension usually purchase the policy which is different from the standard policy. There are businesses which operate and the risks in their operation are likely to happen. They are also purchased by business which insures things of higher value. Therefore, considering the facts extended insurance coverage, the company should consider accepting the extension. Apart from providing extra damages to be covered by the standard policy, the likelihood of the risks occurring is usually low and therefore it can be part of helping the company settle the damages covered under the standard policy. Moreover, in cases of complainants taking legal steps extending coverage can help address issues that were not handled under the original policy. Therefore, through purchasing a policy which is an extension of the original policy insurance companies is able to cover different risks.
Provisions of extension coverage are also significant in situations when there is a law suit and it’s not covered in the standard policy that is provided to the insured. The issue in court might be interpreted differently and in situations where the policy did not cover the issue under consideration it becomes a liability to the insurer because they will obligated to pay for the damages which would otherwise have been avoided in case they could extend the coverage.
In conclusion, commercial general liability policy coverage for opioid is based on two concepts the bodily damage under consideration and the nature of the occurrence. In cases where the complaints have suffered damage due to intentional act by the insured, then the insurer pays for the losses incurred which is usually determined by the court handling the matter. The laws governing commercial general liability is what guides the interpretation of the policy language of the insurer, which is normally determined from the intention of the policy language. However, in situations where there is an ambiguity in a given section of the language policy, resulting from the use of words having either one or two words, the plain open meaning of the words takes precedence.