Key Takeaways
- General liability insurance protects Oregon businesses from third-party injury and property damage claims
- Workers' compensation is mandatory in Oregon for all employers with one or more employees
- Professional liability (E&O) insurance is recommended for Oregon insurance producers
- Oregon's employer liability laws are strict with penalties for non-compliance
- Commercial general liability (CGL) policies follow ISO forms with state-specific endorsements
Casualty & Liability Insurance
Commercial General Liability (CGL)
Coverage Provided:
- Bodily injury liability: Third-party injuries
- Property damage liability: Damage to others' property
- Personal and advertising injury: Libel, slander, copyright infringement
- Medical payments: No-fault medical coverage ($5,000-$10,000)
CGL Policy Structure:
- Per occurrence limit: $1,000,000 typical
- General aggregate: $2,000,000 typical
- Products/completed operations aggregate: $2,000,000
- Defense costs: In addition to limits
Oregon Workers' Compensation
Mandatory Coverage: All Oregon employers with one or more employees must carry workers' comp.
Key Features:
- No-fault system: Employees receive benefits regardless of fault
- Exclusive remedy: Generally prevents employees from suing employer
- Coverage: Medical expenses, lost wages, disability, death benefits
Benefits Provided:
| Benefit Type | Coverage |
|---|---|
| Medical Treatment | All necessary and reasonable medical care |
| Temporary Disability | 66.67% of wages (subject to max) |
| Permanent Disability | Based on impairment rating |
| Vocational Rehabilitation | Retraining for injured workers |
| Death Benefits | Payments to dependents |
Oregon Workers' Comp Administration:
- Administered by: Oregon Workers' Compensation Division
- Dispute resolution: Workers' Compensation Board
- Penalties for non-compliance: Fines, criminal charges, personal liability
Exam Tip: Oregon requires workers' comp for all employers with 1+ employees (including part-time). Some states have higher thresholds.
Professional Liability (Errors & Omissions)
Recommended for: Insurance producers, real estate agents, accountants, consultants
E&O Coverage:
- Protects against: Professional negligence claims
- Covers: Legal defense and settlements
- Claims-made basis: Claim must be made during policy period
- Prior acts coverage: For acts before policy inception (if purchased)
- Retroactive date: Critical for coverage
Why Oregon Producers Need E&O:
- Fiduciary duty: High standard of care
- Complex products: Potential for mistakes
- Client expectations: Increased litigation
- DFR requirements: May be required by some insurers
Oregon Employer Liability
Beyond workers' compensation, employers face:
Third-Party Liability:
- Customer injuries on premises
- Product liability
- Completed operations liability
Employment Practices Liability Insurance (EPLI):
- Wrongful termination claims
- Discrimination allegations
- Sexual harassment claims
- Retaliation claims
Exam Tip: Workers' comp provides "exclusive remedy" - employees generally cannot sue employer but can sue third parties who caused injury.
How many employees must an Oregon employer have before workers' compensation insurance becomes mandatory?
What percentage of wages does Oregon workers' compensation typically pay for temporary disability?
What does the "exclusive remedy" doctrine mean in Oregon workers' compensation?
Which coverage is typically written on a claims-made basis rather than occurrence basis?
Which of the following is NOT typically covered by a Commercial General Liability (CGL) policy?