1. Forms
2. DL
3. DL-34-12

What the Form Is

The DL 34 12 Personal Injury Coverage (Aggregate Limit of Liability) is an endorsement typically added to a Dwelling Policy. Its primary function is to provide liability coverage for "personal injury" offenses committed by the insured. Unlike bodily injury or property damage, personal injury in this context refers to a specific list of offenses, including:

• False arrest, detention, or imprisonment
• Malicious prosecution
• Libel, slander, or defamation of character
• Invasion of privacy
• Wrongful eviction or wrongful entry

A key feature of this endorsement is the "Aggregate Limit of Liability," which means the total amount the insurer will pay for all covered personal injury claims during a policy period is capped at the amount shown in the policy declarations.

Classes of Business It Applies To

This endorsement is primarily used in personal lines insurance, specifically with Dwelling Policies (e.g., DP 00 01, DP 00 02, DP 00 03). It is particularly relevant for individuals who own and rent out residential properties (e.g., landlords of 1-4 family dwellings). These insureds have a higher exposure to personal injury claims from tenants or prospective tenants.

Real-world example: A landlord insured under a Dwelling Policy with the DL 34 12 endorsement might face a lawsuit from a tenant alleging wrongful eviction. This endorsement could provide coverage for the legal defense and any settlement or judgment, up to the aggregate limit.

Special Considerations

• Aggregate Limit: The presence of an aggregate limit is a crucial aspect of this form. This means that once the total payments for all personal injury claims within a single policy period reach this limit, no further coverage for personal injury will be available under this endorsement for that policy period. This differs from endorsements like the DL 24 82, which provides personal injury coverage without an aggregate limit.
• Defined Offenses: Coverage is strictly limited to the types of personal injury offenses specifically listed in the endorsement. Claims arising from other types of actions, even if perceived as injurious, would not be covered unless they fall within these definitions.
• Intentional Acts: While personal injury offenses can involve intentional actions (e.g., slander), policy exclusions related to intentional acts causing bodily injury or property damage may apply differently here. The specifics of the underlying policy and the nature of the act are important.

Key Information for Agents and Underwriters

• Needs Assessment: Agents should discuss this coverage with clients who have rental exposures or other situations where personal injury claims are more likely. Explaining the types of offenses covered and the function of the aggregate limit is essential.
• Risk Assessment: Underwriters should evaluate the insured's potential for personal injury claims. For landlords, this might involve considering their tenant screening practices, eviction procedures, and history of landlord-tenant disputes. The requested aggregate limit should be commensurate with the perceived risk.
• Comparison to Other Forms: It's important for both agents and underwriters to understand the difference between DL 34 12 and other personal injury endorsements, particularly DL 24 82 (which does not have an aggregate limit). The choice of endorsement will depend on the insured's needs and the insurer's underwriting appetite.
• Coverage Gaps: Agents should ensure clients understand that this endorsement does not cover bodily injury or property damage liability, which are typically addressed under other sections of the policy or separate liability policies.