Standard commercial general liability policies

Bodily injury

What constitutes bodily injury under a standard CGL policy?

Any violation of anatomical integrity of flesh, organs and their functions that occur as a result of the effect of one or several external damaging factors (physical, chemical, biological, psychological) should be qualified as a bodily injury.

Property damage

What constitutes property damage under a standard CGL policy?

Property damage is understood as loss, shortage of or damage to certain property.

For example, regarding agricultural insurance, property damage may be understood as loss or shortfall of crops owing to, for instance, frosts, droughts or hailstones in a certain percentage of the expected number of crops.


What constitutes an occurrence under a standard CGL policy?

An occurrence is an event causing liability (obligation to pay indemnity) and is envisaged by the insurance agreement or by law. It may take the form of a bodily injury, damage to property or incurrence of liability.

How is the number of covered occurrences determined?

There is no generally applicable rule in this regard. The determination of the number of covered occurrences depends on the type of insurance and the specific insurance contract. In practice the number of covered occurrences is defined by the type of insurance (eg, health insurance and civil liability of the owners of the means of transport), how the insured event happened, the insured sum and the terms of agreement.

For instance, if the property that was the object of the insurance contract is destroyed, the insured will have only one indemnity payment under this policy. If the property was damaged several times, the insured may receive several indemnity payments, not exceeding the value of the type of property, agreed between parties to the contract. In addition, there are some types of insurance policies that provide for one payment only, such as life insurance.


What event or events trigger insurance coverage?

The occurrence of the insured event under the insurance policy triggers insurance coverage. The insured event is an event prescribed by the insurance contract or by law that has already occurred, and after its occurrence the insurer’s obligation to pay an insurance indemnity arises.

The insured event varies for different types of insurance. For example, as regards health insurance, the insured event would be bodily injury or sickness. With regard to civil liability insurance, the insured event will be the occurrence of tort.

In any case, the insured event will be defined according to the type of insurance, the terms of the insurance contract and the rules of law concerning this type of insurance.

How is insurance coverage allocated across multiple insurance policies?

Ukrainian law provides for the notion of co-insurance when the object of the insurance contract is insured by several insurers by concluding a single insurance contract.

To this end, the insured must notify the insurer of the existence of the other insurance agreement regarding the same subject matter. If it fails to do so, the agreement with the new insurer will be null and void.

This contract must contain the terms that determine the rights and obligations of each insurer. Under the contract, if agreed by the parties, one of the co-insurers may represent all other co-insurers in the relations with the insured, albeit remaining liable within the scope of its share.

In this case, the liability of each co-insurer depends on several factors, such as the terms of the contract between the co-insurers and the insured, the terms of the contract between co-insurers, and the share of property that is insured by the co-insurer.

Law stated date

Correct on

Give the date on which the information above is accurate.

15 January 2020