Casualty & General Liability

Third-party liability coverage including bodily injury, property damage, personal and advertising injury, and professional liability claims.

Playbook Overview

Category
property casualty
Common Letter Types
acknowledgment, reservation of rights, coverage investigation, partial denial, full denial, payment, settlement, subrogation, status, closing
High Complexity Jurisdictions
california, texas, new-york

Casualty & General Liability

Casualty insurance, often referred to as liability insurance, protects the insured against legal liability for damages caused to third parties. Unlike property insurance (first-party), casualty claims involve a third-party claimant and often require complex evaluations of negligence, duty, and damages.

Key Correspondence Patterns

Third-Party Bodily Injury (BI)

  • Liability Determination — Letters communicating the carrier's position on fault.
  • Limit Exhaustion / Stowers — Critical notices when damages likely exceed policy limits.
  • Settlement Offers — Formal transmittals of settlement authority and releases.

General Liability (GL)

  • Additional Insured (AI) Tenders — Correspondence regarding defense and indemnity
obligations to third parties via contract.
  • Coverage Defenses — Reservations and denials based on exclusions like "Intentional Acts"
or "Contractual Liability."

Professional Liability (PL)

  • Errors and Omissions (E&O) — Professional liability claims.
  • Medical Malpractice — Specialized casualty claims.

Umbrella/Excess

  • Coordination with Primary Carriers — High-limit coverage oversight.

Essential Components

  • 5-Part Explainability Structure for adverse decisions.
  • Mustache Variables for automated data insertion.
  • Regulatory Notices for jurisdiction-specific compliance.

Applicable Letter Templates