Standard commercial general liability policies

Bodily injury

What constitutes bodily injury under a standard CGL policy?

Under civil liability insurance, which is comparable to a CGL policy in Brazil, bodily injury generally means physical injury caused to a person’s body, excluding psychological or mental harm, unless otherwise set forth in the agreed conditions. In some insurance products, coverage for bodily injury encompasses death and disability.

Property damage

What constitutes property damage under a standard CGL policy?

Under civil liability insurance, which is comparable to a CGL policy in Brazil, property damage generally means physical harm, deterioration or destruction caused to tangible property or assets. Different provisions apply to inclusion or exclusion of financial losses to the concept of property damage.

Occurrences

What constitutes an occurrence under a standard CGL policy?

An occurrence under civil liability insurance generally refers to the occurrence of a harmful act or fact for which the insurer is liable under the corresponding coverage (eg, bodily injury, moral damage and property damage to a third party). Policies may vary from all-risks coverage to specific nominated risks policies.

How is the number of covered occurrences determined?

Each insurance policy establishes the number and limitation of covered occurrences. Most of the policies provide for the maximum amount of coverage stipulated in the insurance contract, and certain others may also include the number of occurrences covered.

It is also possible to consider ancillary occurrences and multiple claims deriving from the same occurrence (eg, the 72 hours clause).

Coverage

What event or events trigger insurance coverage?

The events triggering insurance coverage are those specifically described in the terms and conditions of the insurance policy.

How is insurance coverage allocated across multiple insurance policies?

Multiple insurance policies covering the same interest may be concurrent or in excess. If the policies are silent on it, a concurrence regime shall apply.

Except for life, which may be insured by multiple policies concomitantly on the same basis, other interests may only be insured once, and, in some cases, with an express additional percentage (eg, purchase cost plus 20 per cent value).

Law stated date

Correct on

Give the date on which the information above is accurate.

December 2019