Coverage  The claim for bodily injury or property damage that occurs on an insured premises or from the ownership, use or maintenance of the premises is covered under Coverage A of the commercial general liability policy or under a homeowners or farm policy.  If there was an accidental injury or property damage during the policy term, coverage issues will usually be limited to exclusions.

Liability  The insured would generally be liable for accidents caused by hazardous conditions on the premises or by the negligent conducting of any operations.  The doctrine of strict liability may be applied to extra hazardous activities. * A defense for claims based on a hazardous defect on the premises is lack of notice.  The insured must show that they had no actual or constructive notice. *  When the hazardous condition is open and obvious the comparative fault of the claimant may be raised.  *  In California and other jurisdictions, there is a defense based upon the triviality of the defect (Ursino v. Big Boy Restaurants (1987) 192 Cal. App. 3d 394). *  In some legal jurisdictions, the status of the claimant as an invitee, business invitee or trespasser affects the duty owed by the owner.

Damages  Damages must be either bodily injury or property damage, or be directly related to bodily injury or property damage.  These terms are defined in the policy.

Resolution  Achieving good rapport with the claimant or claimant's attorney is often beneficial.  Litigation is indicated in cases where there is significant disagreement on both liability and damages.  If litigation begins informal discovery may still proceed.  Settlements soon before trial and after substantial formal discovery cannot usually be justified on a cost-benefit basis.  The decision to try a case may create additional risk to the insured and the carrier.  These risks require careful analysis.

STATUTES OF LIMITATIONS