The insured under a Commercial General Liability policy rents an additional warehouse. He would be covered without notice to the agent or the insurer for which of the following?
Choose one answer.
a. 90 days
b. Remainder of the policy term (correct answer)
c. 60 days
d. 30 days
In the book, on page 122... If the named insured acquires or forms another business (other than a artnership, joint venuture, or limited liability company) during the policy term, such an organization becomes a named insured for 90 days, but only as to events which occur after the acquisition. In sured status does not apply to anyone for a partnership, joint venture or limited liability company not shown as a named insured in the declarations.
Is there a difference between who is an insured as opposed to what property is insured in regards to notification to the insurer?
Tim,
This question is referring only to additional property that is added during the policy term.
If - by adding additional property - the status of the named insured changes; liability coverage would be subject to change also. For example: I own a business and decide to lease an additional warehouse. The CGL covers the additional warehouse against liability claims. However, if when I acquire the additional warehouse space, I take on a partner to help with the extra workload - I have 90 days coverage from the time I acquire the partnership and the loss must have happened after the partnership was formed.
Does this answer your question? - Jan