FRAGMENTED RISK: AN INTRODUCTION

Author: 

Jay M. Feinman

Consider two potential paradoxes about the breadth and limits of insurance, one in property insurance and one under the Commercial General Liability (“CGL”) policy.

Most homeowners have only the vaguest sense of the extent of coverage provided by their homeowners’ insurance policy, particularly the breadth of coverage it provides. Using as an example the HO-3 policy, the most widely used policy, most homeowners would not be surprised to know that it covers physical damage to their home and its contents and their tort liability for accidents to visitors to their home. More likely they would be surprised to learn that it covers damage to their personal property “while it is anywhere in the world,” medical expenses to visitors to the home or other persons injured “by the activities of the insured” even in the absence of the homeowners’ legal liability to the visitors or other persons, and the homeowners’ liability for personal injury for accidents unrelated to the home at all. View More