Sales or Service Organizations

What Does GL Code 47367 Cover?

ISO GL class code 47367 covers businesses primarily engaged in sales or service activities where the primary exposure is not related to manufacturing, construction, or direct physical handling of goods. This class typically applies to organizations that provide intangible services or act as intermediaries in sales processes, with their liability stemming from professional advice, administrative errors, or general business operations rather than physical products or extensive on-site work. It classifies entities whose revenue basis is primarily gross receipts from these service-oriented operations.

Who Uses This Class Code?

This code is utilized by a broad range of businesses including marketing agencies, business consultants, advertising firms, employment agencies, and call centers. It also applies to sales representatives, brokers (excluding real estate or insurance, which have specific codes), and other organizations that facilitate transactions or provide expertise without significant physical risk. Specific examples include telemarketing companies, management consulting firms, and event planning services.

Common GL Claims for This Class

Common claims for sales and service organizations include allegations of professional negligence or errors in advice, such as a consultant providing flawed recommendations leading to client financial loss. Other frequent claims involve personal and advertising injury, like defamation or copyright infringement arising from marketing campaigns or sales pitches.

Coverage Tips for Code 47367

• Ensure your General Liability policy includes Personal and Advertising Injury coverage, as sales and service organizations are highly susceptible to claims arising from libel, slander, or copyright infringement.
• Review your policy for Errors and Omissions (E&O) coverage, also known as Professional Liability, which is crucial for protecting against claims of negligence or inadequate service delivery, a common exposure for service-based businesses.
• For organizations with remote or traveling sales staff in Florida, verify that your policy provides coverage for operations conducted off-premises and in various jurisdictions within the state.
• If your organization uses independent contractors or third-party vendors, always require them to carry their own General Liability insurance and name your business as an Additional Insured to mitigate vicarious liability.