3.2 Ohio General Liability Insurance

Fault Allocation in Liability Claims

Ohio's general-liability environment is governed by tort reform statutes that limit how much a defendant pays and when. A producer selling commercial general liability (CGL), professional liability, or umbrella coverage must understand these rules because they drive policy-limit recommendations.

Modified comparative negligence (recap for liability)

The same ORC 2315.33 rule from auto applies to all negligence claims: a plaintiff recovers only if their fault is 50% or less, and the award is reduced by their share. A plaintiff 51%+ at fault recovers nothing.

Modified joint and several liability (ORC 2307.22)

Ohio abolished pure joint-and-several liability. The rule now depends on the type of damages and the defendant's percentage of fault:

Key trap: Non-economic damages are always several, no matter how high a defendant's fault. Only a defendant more than 50% at fault can be saddled with another party's unpaid economic damages.

Caps on non-economic damages

For most non-catastrophic tort claims, Ohio caps non-economic damages at the greater of $250,000 or three times economic loss, not to exceed $350,000 per plaintiff or $500,000 per occurrence. The cap is lifted for permanent, substantial physical deformity or loss of a limb/organ. There is generally no cap on economic damages.

Commercial General Liability (CGL)

Ohio CGL policies follow Insurance Services Office (ISO) standard forms and must clearly disclose:

• Trigger basis — occurrence vs. claims-made (claims-made requires a retroactive date and extended reporting/"tail" disclosure)
• Coverage territory and per-occurrence + aggregate limits
• Duty to defend — defense costs are typically OUTSIDE the limit (in addition to it)
• Standard exclusions (pollution, professional services, expected/intended injury)

Rate regulation — file and use

Ohio is a "file and use" state for most commercial casualty lines: insurers file rates with the Ohio Department of Insurance (ODI) and may use them immediately, subject to later review. Rates must be actuarially supported and may not be excessive, inadequate, or unfairly discriminatory.

Occurrence vs. claims-made — a producer's recommendation

The trigger choice has real consequences. An occurrence policy responds to bodily injury or property damage that happens during the policy period, no matter when the claim is reported — ideal for long-tail exposures like construction defects. A claims-made policy responds only if the claim is both made and reported during the policy period (or its tail), and only for injuries after the retroactive date. A contractor who lets a claims-made policy lapse without buying an extended reporting period (tail) can be left uninsured for past work. Producers must explain this gap before a client switches carriers or retires.

Negligence Per Se

Ohio recognizes negligence per se ("negligence in itself"). When a defendant violates a statute or safety regulation enacted to protect a class of persons, the violation conclusively establishes the breach-of-duty element — the jury need not weigh what a reasonable person would have done.

What still must be proven

• Causation — the violation actually caused the harm
• Damages — the plaintiff suffered a compensable loss
• The plaintiff is within the class the statute protects, and the harm is the type the statute guards against

Typical examples

Products Liability

Ohio's Product Liability Act (ORC 2307.71 et seq.) recognizes three theories:

Statute of repose

Ohio imposes a 10-year statute of repose: most product claims are barred 10 years after the product was delivered to its first purchaser, regardless of when the injury occurs. (A separate 2-year statute of limitations runs from the date of injury.) Defenses include the sophisticated-user doctrine and compliance with mandatory government standards.

Premises Liability

The duty a landowner owes depends on the entrant's status:

Recreational User Statute

Ohio's Recreational User Statute (ORC 1533.18–.181) shields landowners who allow free recreational use of their land: the owner owes no duty to keep the premises safe or to warn of dangers, provided no fee is charged. The shield is lost for willful or malicious failure to warn.

Why these rules drive coverage decisions

Entrant-status and statutory immunities directly shape a CGL underwriter's appetite and a producer's limit recommendation. A retail business open to the public owes the invitee standard to every customer, so slip-and-fall frequency is high and higher premises limits are warranted. A farm or hunting-lease owner benefits from the Recreational User Statute but loses that protection the moment a fee is charged — converting guests into invitees and sharply raising exposure. Producers should ask whether any payment, even a nominal one, changes the entrant's status.

Umbrella coverage and the damages caps

Because Ohio caps non-economic damages but leaves economic damages (medical bills, lost earnings, future care) uncapped, the catastrophic exposure on a liability claim is usually economic loss. A commercial umbrella or excess policy sitting above the CGL is the standard tool to cover seven-figure economic awards. A producer who understands that the cap does not limit economic damages can explain to a client why a $1 million CGL limit may be inadequate for a serious-injury claim, justifying the umbrella sale.