The insuring clause in a commercial policy of liability
insurance will typically provide cover for "liability for any
claim... in connection with (or similar words such as "'in
respect of" or "arising from" or "in the
conduct of") the insured business".
This article looks at a series of recent legal decisions that
have focused on two of the main triggers of cover in such insuring
clauses:
- The identification of the types of claim covered
- The concept of connection to the insured business.
COMPENSATION
In commercial liability policies, the cover provided in the main
insuring clause is generally restricted to claims for compensation.
This limitation is most commonly found in the definition of
"claim". In some policies it may be contained in the
insuring clause itself or in the definition of the "loss"
covered. Two recent cases provide some guidance as to the way in
which this limitation may operate in practice.
