CISR Commercial Casualty 1 Exam
Review 100% Accurate.
Define Liability - ANSWERThe state of being bound or obliged in law to do, pay, or
make something good. Legal responsibility
Common Law - ANSWERSet of legal rules used in the US to resolve civil (not
criminal) disputes in court.
EX) a customer slipping and falling on wet floor not marked with a sign. This would
be a civil dispute in court
Business Liabilities - ANSWERObligations carried by a business at any one time
Premises Liability - ANSWERLiability tied to a specific location. Businesses are liable
if someone is injured on their property
Operations Liability - ANSWERExposures that typically occur away from the
premises. These exposures are typically from activities such as performing
construction, processing, or providing services on someone else's property
Products Liability - ANSWERExposures caused by defects in a products design,
manufacturing, or failure to explain the safe use to customers.
EX) A manufacturer forgetting to put a choking hazard sticker on a small toy
Completed Operations Liability - ANSWERExposure arising from injury/damage
caused by defective or improper workmanship after the job has been completed.
EX) An oil change company not putting the correct oil in a customer's car, resulting in
the car being damaged
Automobile Liability - ANSWERExposure arising out of injury/damage due to the
ownership, maintenance, or use of an auto.
EX) if an employee causes a wreck driving a company car, both the employer and
the employee will be held liable for the damages
Conveyance Liability - ANSWERExposure arising from the use of mobile equipment.
This could be from a company using a barge to transport products, machinery
moving gravel, etc. and causing damage/injury
Employment Liability - ANSWERLiability arising from having employees. This could
be for many reasons including: a onetime work-related injury, workplace harassment,
repetitive movement resulting in injury due to work, etc.
Liquor Liability - ANSWERLiability arising out of the selling, serving, and/or
consumption of alcohol. This could be a bar that serves alcohol as part of their
operations, or even a company Christmas party where alcohol is available to
employees
, Environmental Impairment Liability - ANSWERLiability arising when the operations or
products of a business cause environmental harm.
EX) A gas tank leaking gas into the soil
Pollutant - ANSWERAny material that is not where it is supposed to be
Professional Liability - ANSWERLiability arising out of services provided by an
industry professional.
EX) An accountant providing false advice to a customer, resulting in the customer
having IRS fines
Bailee Liability - ANSWERLiability arising from being in possession of another's
property.
EX) A jewelry store keeps a customer's watch overnight, and it is stolen from the
store. The jewelry store will be held liable
Liability Trigger - ANSWEROccurrence or accident that causes a tort or civil wrong.
In other words, and event that results in damage/injury because of actions or
inactions of another party
Direct Liabiltiy - ANSWERLiability as a result of one's own conduct
Contingent (Vicarious) Liability - ANSWERLiability of one party based on the liability
of another.
This could be from the following relationships:
Employer/Employee
Principal/Agent
Owner/Manager
Owner/Contractor
Contractor/Subcontractor
Tort - ANSWERA civil wrong recognized in court. There are the following types of
torts:
Negligence
Intentional Torts
Strict/Absolute Liability
Negligence - ANSWERThere must be a duty to others
There must be a breach of the duty
There must be injury/damage
There must be a proximate cause between breach of duty and damages
An accidental act
Intentional Tort - ANSWERA voluntary act done intentionally, resulting in
injury/damage to another.
Libel/Slander
Wrongful entry/eviction
Assault/battery
Wrongful detention
Review 100% Accurate.
Define Liability - ANSWERThe state of being bound or obliged in law to do, pay, or
make something good. Legal responsibility
Common Law - ANSWERSet of legal rules used in the US to resolve civil (not
criminal) disputes in court.
EX) a customer slipping and falling on wet floor not marked with a sign. This would
be a civil dispute in court
Business Liabilities - ANSWERObligations carried by a business at any one time
Premises Liability - ANSWERLiability tied to a specific location. Businesses are liable
if someone is injured on their property
Operations Liability - ANSWERExposures that typically occur away from the
premises. These exposures are typically from activities such as performing
construction, processing, or providing services on someone else's property
Products Liability - ANSWERExposures caused by defects in a products design,
manufacturing, or failure to explain the safe use to customers.
EX) A manufacturer forgetting to put a choking hazard sticker on a small toy
Completed Operations Liability - ANSWERExposure arising from injury/damage
caused by defective or improper workmanship after the job has been completed.
EX) An oil change company not putting the correct oil in a customer's car, resulting in
the car being damaged
Automobile Liability - ANSWERExposure arising out of injury/damage due to the
ownership, maintenance, or use of an auto.
EX) if an employee causes a wreck driving a company car, both the employer and
the employee will be held liable for the damages
Conveyance Liability - ANSWERExposure arising from the use of mobile equipment.
This could be from a company using a barge to transport products, machinery
moving gravel, etc. and causing damage/injury
Employment Liability - ANSWERLiability arising from having employees. This could
be for many reasons including: a onetime work-related injury, workplace harassment,
repetitive movement resulting in injury due to work, etc.
Liquor Liability - ANSWERLiability arising out of the selling, serving, and/or
consumption of alcohol. This could be a bar that serves alcohol as part of their
operations, or even a company Christmas party where alcohol is available to
employees
, Environmental Impairment Liability - ANSWERLiability arising when the operations or
products of a business cause environmental harm.
EX) A gas tank leaking gas into the soil
Pollutant - ANSWERAny material that is not where it is supposed to be
Professional Liability - ANSWERLiability arising out of services provided by an
industry professional.
EX) An accountant providing false advice to a customer, resulting in the customer
having IRS fines
Bailee Liability - ANSWERLiability arising from being in possession of another's
property.
EX) A jewelry store keeps a customer's watch overnight, and it is stolen from the
store. The jewelry store will be held liable
Liability Trigger - ANSWEROccurrence or accident that causes a tort or civil wrong.
In other words, and event that results in damage/injury because of actions or
inactions of another party
Direct Liabiltiy - ANSWERLiability as a result of one's own conduct
Contingent (Vicarious) Liability - ANSWERLiability of one party based on the liability
of another.
This could be from the following relationships:
Employer/Employee
Principal/Agent
Owner/Manager
Owner/Contractor
Contractor/Subcontractor
Tort - ANSWERA civil wrong recognized in court. There are the following types of
torts:
Negligence
Intentional Torts
Strict/Absolute Liability
Negligence - ANSWERThere must be a duty to others
There must be a breach of the duty
There must be injury/damage
There must be a proximate cause between breach of duty and damages
An accidental act
Intentional Tort - ANSWERA voluntary act done intentionally, resulting in
injury/damage to another.
Libel/Slander
Wrongful entry/eviction
Assault/battery
Wrongful detention
