An Endorsement changes the base policy. With some policies and contracts, “Addendum” is used when additional coverages or provisions apply. “Exclusions” will apply if certain exclusions are added to the policy (in addition to those listed within the documents). “Amendment” is an addition to a contract or policy that changes the wording of the agreement. The definition of Endorsement is act of giving sanction or support to the document – confirmation – approval.
Endorsements are necessary in insurance contracts as insurance is regulated by 50 states and (now) the Federal Government. While the Insurance Service Office has presented standardized wording which most of the States have accepted, because of local situations or politics, there will be certain changes, additions or changes to the contract, either by adding some coverage or changing coverage – seldom is a coverage removed unless it is replaced by coverage equal or more liberal than the original coverage.
The following Endorsements are those most prevalent in the industry and some will pertain to Claims-Made forms only and others to Occurrence Forms. This will be so indicated on the Endorsement. All Endorsements contain a statement similar to the following, at the beginning of each Endorsement: “THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.” The Policy Number to which the Endorsement applies appears at the very top of the Endorsement and the type of policy and policy form number also appears at the top.
Certain important and specific parts of the Endorsement will be written in Italics for emphasis.
This endorsement modifies insurance provided under the following:
COMMERCIAL GENERAL LIABILITY COVERAGE FORM
(CLAIMS‑MADE VERSION)
Premium (The premium applicable to this supplemental form is given)
The Supplemental Extended Reporting Period Endorsement has been discussed earlier under the Claims-Made Form. The Endorsement provides for such extended reporting period and the Limits of Insurance are placed to apply to claims first received and recorded during the Supplemental period. Definitions of the Supplemental General Aggregate Limits and Products-Completed Operations Aggregate Limit are defined. Also, the Excess Insurance provisions are changed by this Endorsement to reflect the additional coverage-reporting period. The Endorsement would appear similar to the following:
A. A Supplemental Extended Reporting Period Endorsement is provided, as described in EXTENDED REPORTING PERIODS (Section V).
B. A Supplemental General Aggregate Limit and a Supplemental Products‑ Completed Operations Aggregate Limit apply, as set forth in paragraphs C. and D. below, to claims first received and recorded during the Supplemental Extended Reporting Period. These limits are equal, respectively, to the General Aggregate Limit and the Products‑ Completed Operations Aggregate Limit, if any, entered on the Declarations in effect at the end of the policy period.
C. Paragraph 2. of LIMITS OF INSURANCE (Section III) is replaced by the following:
2. The General Aggregate Limit is the most the insurer will pay for the sum of:
a. Medical expenses under Coverage C;
b. Damages under Coverage A, except damages because of "bodily injury" and property damage" included in the "products‑completed operations hazard"; and
c. Damages under Coverage B.
However, the General Aggregate Limit does not apply to damages for claims first received and recorded during the Supplemental Extended Reporting Period.
The Supplemental General Aggregate Limit is the most the insurer will pay for the sum of damages under:
a. Coverage A, except damages because of "bodily injury" and "property damage" included in the "products‑completed operations hazard"; and
b. Coverage B, for claims first received and recorded during the Supplemental Extended Reporting Period.
D. Paragraph 3. of LIMITS OF INSURANCE (Section III) is replaced by the following:
3. The Products‑ Completed Operations Aggregate Limit is the most the insurer will pay under Coverage A for damages because of "bodily injury" or "property damage" included in the "products‑completed operations hazard", except damages for claims first received and recorded during the Supplemental Extended Reporting Period.
The Supplemental Products‑ Completed Operations Aggregate Limit is the most the insurer will pay under Coverage A for damages because of "bodily injury" or "property damage" included in the "products ‑completed operations hazard" for claims first received and recorded during the Supplemental Extended Reporting Period.
E. LIMITS OF INSURANCE (Section III), as amended by paragraphs C. and D. above, is otherwise unchanged and applies in its entirety.
F. The first paragraph of paragraph 4.b. of COMMERCIAL GENERAL LIABILITY CONDITIONS (Section IV) is replaced by the following:
4. Other insurance.
b. Excess insurance
This insurance is excess over any of the other insurance, whether primary, excess, contingent or on any other basis:
(1) That is effective prior to the beginning of the policy period shown in the Declarations of this insurance and applies to "bodily injury" or "property damage" on other than a claims‑made basis, if:
(a) No Retroactive Date is shown in the Declarations of this insurance; or
(b) The other insurance has a policy period, which continues after the Retroactive Date shown in the Declarations of this insurance;
(2) That is Fire, Extended Coverage, Builders' Risk, Installation Risk or similar coverage for "your work";
(3) That is Fire Insurance for premises rented to you;
(4) If the loss arises out of the maintenance or use of aircraft, "autos" or watercraft to the extent not subject to exclusion g. of Coverage A (Section 1); or
(5) Whose policy period begins or continues after the Supplemental Extended Reporting Period begins.
G. This endorsement will not take effect unless the additional premium for it, as set forth in Section V, is paid when due. If that premium is paid when due, this endorsement may not be cancelled.
CONSUMER APPLICATION
Sam owned a ‘Petting Zoo”, and was insured with a claims-made Commercial General Liability policy. Because of high claims, his insurance company refused to renew the liability policy on expiry date of 1/1/98.
On November 1, 1998, a zebra in the petting zoo causes bodily harm to three children. The parents of one child filed a claim during the 60 day extended reporting period. Sam is very concerned that other claims may arise because of this incident. Sam should immediately request a Supplemental Extended Reporting Period Endorsement, and he would be advised to be sure that the request for the Endorsement arrives at the Home Office of the insurance company within 60 days of the expiration of the policy, i.e. prior to 3/1/1998.
This Endorsement excludes certain specified accident, products, work or location from coverage under the base policy to which the Endorsement is attached. It will also identify the specific accidents, etc. that will be covered under the Extended Reporting Periods.
This endorsement modifies insurance provided under the following:
COMMERCIAL GENERAL LIABILITY COVERAGE FORM
(CLAIMS‑MADE VERSION)
SCHEDULE
Date of Accident Location of Accident Description of Accident
"Location" Address Description of "Location"
"Your Product"
(or "Your Work" Date of (Manufacture, Sale,
Description) Distribution, Disposal,
or Completion)
(Specify Date and one of
above acts)
A. COVERAGE A ‑ BODILY INJURY AND PROPERTY DAMAGE LIABILITY (Section I ‑ Coverages) does not apply to "bodily injury" or property damage" arising out of:
1. The accidents or "locations", if any, described above; or
2. The products or work, if any, described above, if the "bodily injury" or "property damage" is included in the "products‑completed operations hazard"; even if other causes contribute to or aggravate the "bodily injury" or "property damage".
B. Extended Reporting Periods
The following applies when this Endorsement takes effect, but only if:
1. This insurance is a renewal of an immediately preceding policy issued by us providing claims‑made coverage for Bodily Injury and Property Damage Liability; and
2. That coverage applies to "bodily injury" and “property damage" arising out of any of the accident(s), products, work or "location(s)" described above.
In this case, the insurer will provide an Extended Reporting Period under that preceding policy, but only for such "bodily injury" and "property damage" that occurred before the end of the policy period of that preceding policy (but not before any applicable Retroactive Date).
The insurer will issue the Amendment of Section V ‑ Extended Reporting Periods for Specific Accidents, Products, Work or Locations endorsement on that preceding policy, amending paragraphs 1. and 2. of EXTENDED REPORTING PERIODS (Section V) accordingly. The Extended Reporting Period will then be as set forth in that Section.
C. For the purposes of this endorsement, the following definition is added to
DEFINITIONS (Section VI):
"Location" means premises involving the same or connecting lots, or premises whose connection is interrupted only by a street, roadway, waterway or right‑of‑way of a railroad.
When a policy has been renewed, certain specific accidents, products, work or location are excluded from future coverage and are “moved” to the Extended Reporting Period. In order to determine which of the accidents, etc., are “moved” they are listed on this Endorsement and treated accordingly.
This endorsement modifies insurance provided under the following:
COMMERCIAL GENERAL LIABILITY COVERAGE FORM
(CLAIMS‑MADE VERSION)
PRODUCTS‑ COMPLETED OPERATIONS LIABILITY COVERAGE FORM
(CLAIMS‑MADE VERSION)
SCHEDULE
Date of Accident Location of Accident Description of Accident
"Location" Address Description of "Location"
"Your Product"
(or "Your Work" Date of (Manufacture, Sale,
Description) Distribution, Disposal,
or Completion)
(Specify Date and one of
above acts)
The insurer has issued a renewal of this insurance excluding "bodily injury" and "property damage" arising out of the accident(s), products, work or "location(s)" described above. When that renewal takes effect, this insurance is amended as follows:
A. Paragraph 1. of EXTENDED REPORTING PERIODS (Section V) is replaced by the following:
1. One or more Extended Reporting Periods are provided as set forth below.
B. Paragraph 2. of EXTENDED REPORTING PERIODS (Section V) is replaced by the following:
2. Extended Reporting Periods do not extend the policy period or change the scope of coverage provided. They apply only to claims for "bodily injury" or "property damage" that occurred before the end of the policy period (but not before the Retroactive Date, if any, shown in the Declarations), and only if such "bodily injury" or "property damage":
a. Arose out of the accident(s) or "location (s)", if any, described above; or
b. Arose out of the products or work, if any described above and is included in the products ‑ completed operations hazard".
Once in effect, Extended Reporting Periods may not be cancelled.
C. Paragraphs 3., 4., 5. and 6. of EXTENDED REPORTING PERIODS (Section V) remain unchanged. But the Supplemental Extended Reporting Period endorsement referred to in paragraphs 5. and 6. will be the Supplemental Extended Reporting Period Endorsement for Specific Accidents, Products, Work or Locations.
D. For the purposes of this endorsement, the following definition is added to DEFINITIONS (SECTION VI):
"Location" means premises involving the same or connecting lots, or premises whose connection is interrupted only by a street, roadway, waterway or right‑of‑way of a railroad.
This Endorsement provides the Supplemental Extended Reporting Period Endorsement to the Claims-Made Form. This form is similar to the previous Supplemental Reporting Period Endorsements, but is for Specific Accidents, Products, Work or Location. If the general format is to be used, the previously Endorsement is used, but if there are specific accidents, etc., involved, then this format is used.
COMMERCIAL GENERAL LIABILITY COVERAGE FORM
(CLAIMS‑MADE VERSION)
SCHEDULE
A. The Supplemental Extended Reporting Period Endorsement described in EXTENDED REPORTING PERIODS (Section V), as amended by the Amendment of Section V ‑ Extended Reporting Periods for Specific Accidents, Products, Work or Locations endorsement, is provided.
B. A Supplemental General Aggregate Limit and a Supplemental Products‑ Completed Operations Aggregate Limit apply, as set forth in paragraphs C. and D. below, to claims first received and recorded during the Supplemental Extended Reporting Period. These limits are equal, respectively, to the General Aggregate Limit and the Products‑ Completed Operations Aggregate Limit, if any, entered on the Declarations in effect at the end of the policy period.
C. Paragraph 2. of LIMITS OF INSURANCE (Section III) is replaced by the following:
2. The General Aggregate Limit is the most the insurer will pay for the sum of:
a. Medical expenses under Coverage C;
b. Damages under Coverage A, except damages because of "bodily injury" and property damage" included in the products ‑completed operations hazard"; and
c. Damages under Coverage B.
However, the General Aggregate Limit does not apply to damages for claims first received and recorded during the Supplemental Extended Reporting Period.
The Supplemental General Aggregate Limit is the most the insurer will pay for the sum of damages under:
a. Coverage A, except damages because of "bodily injury" or "property damage" included in the "products‑ completed operations hazard"; and
b. Coverage B,
for claims first received and recorded during the Supplemental Extended Reporting Period.
D. Paragraph 3. of LIMITS OF INSURANCE (Section III) is replaced by the following:
3. The Products‑ Completed Operations Aggregate Limit is the most the insurer will pay under Coverage A for damages because of "bodily injury" or "property damage" included in the "products ‑ completed operations hazard", except damages for claims first received and recorded during the Supplemental Extended Reporting Period.
The Supplemental Products‑ Completed Operations Aggregate Limit is the most the insurer will pay under Coverage A for damages because of "bodily injury" or "property damage" included in the "products‑ completed operations hazard" and for claims first received and recorded during the Supplemental Extended Reporting Period.
E. LIMITS OF INSURANCE (Section III) as amended by paragraphs C. and D. above, is otherwise unchanged and applies in its entirety.
F. The first paragraph of paragraph 4.b. of COMMERCIAL GENERAL LIABILITY CONDITIONS (Section IV) is replaced by the following:
4. Other Insurance
b. Excess Insurance
This insurance is excess over any of the other insurance, whether primary, excess, contingent or on any other basis:
(1) That is effective prior to the beginning of the policy period shown in the Declarations of this insurance and applies to "bodily injury" or "property damage" on other than a claims‑made basis, if:
(a) No Retroactive Date is shown in the Declarations of this insurance; or
(b) The other insurance has a policy period, which continues after the Retroactive Date shown in the Declarations of this insurance;
(2) That is Fire, Extended Coverage, Builders' Risk, Installation Risk or similar coverage for "your work";
(3) That is Fire Insurance for premises rented to you;
(4) If the loss arises out of the maintenance or use of aircraft, "autos" or watercraft to the extent not subject to exclusion g. of Coverage A (Section 1); or
(5) Whose policy period begins or continues after the Supplemental Extended Reporting Period begins.
G. This endorsement will not take effect unless the additional premium for it, as set forth in Section V, is paid when due. If that premium is paid when due, this endorsement may not be cancelled.
This Endorsement applies to both the Claims-Made and Occurrence forms and is designed to exclude employment-related practices from the Liability Policy. This can be used to reduce premiums, or if the business carries a separate liability policy covering employment related practices; this coverage could be eliminated from the commercial general policy.
This endorsement modifies insurance provided under the following:
COMMERCIAL GENERAL LIABILITY COVERAGE PART A.
A. The following exclusion is added to paragraph 2., Exclusions of COVERAGE A ‑ BODILY INJURY AND PROPERTY DAMAGE LIABILITY (Section I ‑ Coverages): This insurance does not apply to: "Bodily injury" to:
(1) A person arising out of any:
(a) Refusal to employ that person;
(b) Termination of that person's employment; or
(c) Employment‑ related practices, policies, acts or omissions, such as coercion, demotion, evaluation, reassignment, discipline, defamation, harassment, humiliation or discrimination directed at that person; or
(2) The spouse, child, parent, brother or sister of that person as a consequence of "bodily injury" to that person at whom any of the employment‑ related practices described in paragraphs (a), (b), or (c) above is directed.
This exclusion applies:
(1) Whether the insured may be liable as an employer or in any other capacity; and
(2) To any obligation to share damages with or repay someone else who must pay damages because of the injury.
B. The following exclusion is added to paragraph 2., Exclusions of COVERAGE B ‑ PERSONAL AND ADVERTISING INJURY LIABILITY (Section I ‑ Coverages):
This insurance does not apply to:
"Personal injury" to:
(1) A person arising out of any:
(a) Refusal to employ that person;
(b) Termination of that person's employment; or
(c) Employment‑ related practices, policies, acts or omissions, such as coercion, demotion, evaluation, reassignment, discipline, defamation, harassment, humiliation or discrimination directed at that person; or
(2) The spouse, child, parent, brother or sister of that person as a consequence of "personal injury" to that person at whom any of the employment‑ related practices described in paragraphs (a), (b), or (c) above is directed.
This exclusion applies:
(1) Whether the insured may be liable as an employer or in any other capacity; and
(2) To any obligation to share damages with or repay someone else who must pay damages because of the injury.
This Amendment is provided because of recent court decisions, which have ruled that the liquor liability exclusion in the Commercial General Liability policy does not apply to nonprofit organizations that furnish alcoholic beverages. Frequently quoted is the situation where a nonprofit organization provides drinks at a fund-raising affair. The fact that they are not in the practice of providing liquor seems to make no difference to the courts. Therefore, the Amendment excludes the liquor liability if the insured serves or furnish alcoholic beverages for a charge even if the purpose of livelihood is not involved. This applies to either Claims-Made or Occurrence Forms.
This endorsement modifies insurance provided under the following:
COMMERCIAL GENERAL LIABILITY COVERAGE PART
Exclusion c. of COVERAGE A (Section I) is replaced by the following:
c. “Bodily injury" or “property damage” for which any insured may be held liable by reason of:
(1) Causing or contributing to the intoxication of any person;
(2) The furnishing of alcoholic beverages to a person under the legal drinking age or under the influence of alcohol; or
(3) Any statute, ordinance or regulation relating to the sale, gift, distribution or use of alcoholic beverages.
This exclusion applies only if you:
(1) Manufacture, sell or distribute alcoholic beverages;
(2) Serve or furnish alcoholic beverages for a charge whether or not such activity:
(a) Requires a license;
(b) Is for the purpose of financial gain or livelihood; or
(3) Serve or furnish alcoholic beverages without a charge, if a license is required for such activity.
This Amendment is provided to except specific scheduled activities, which are either listed at the top of the Endorsement, or shown in the Declarations.
This endorsement modifies insurance provided under the following:
COMMERCIAL GENERAL LIABILITY COVERAGE PART
Description of Activity (is):
SCHEDULE
(If no entry appears above, information that is required to complete this endorsement will be shown in the Declarations as applicable to this endorsement)
Exclusion c. of COVERAGE A (Section 1) is replaced by the following:
c. "Bodily injury" or "property damage" for which any insured may be held liable by reason of:
(1) Causing or contributing to the intoxication of any person;
(2) The furnishing of alcoholic beverages to a person under the legal drinking age or under the influence of alcohol; or
(3) Any statute, ordinance or regulation relating to the sale, gift, distribution or use of alcoholic beverages.
This exclusion applies only if you:
(1) Manufacture, sell or distribute alcoholic beverages;
(2) Serve or furnish alcoholic beverages for a charge whether or not such activity:
(a) Requires a license;
(b) Is for the purpose of financial gain or livelihood; or
(3) Serve or furnish alcoholic beverages without a charge, if a license is required for such activity.
However, this exclusion does not apply to "bodily injury" or "property damage" arising out of the selling, serving or furnishing of alcoholic beverages at the specific activity(ies) described above.
Within the Commercial General Liability policy there is extremely limited pollution coverage. On occasion, the insured or the insurer may want to eliminate even this small exclusion, which they can do with this Endorsement. Note: this Endorsement eliminates coverage, and the following Limited Pollution Liability Extension Endorsement provides limited coverage.
This endorsement modifies insurance provided under the following:
COMMERCIAL GENERAL LIABILITY COVERAGE PART
Exclusion f. under paragraph 2., Exclusions of COVERAGE A ‑ BODILY INJURY AND PROPERTY DAMAGE LIABILITY (Section I ‑ Coverages) is replaced by the following:
This insurance does not apply to:
f. (l.) "Bodily injury" or "property damage" which would not have occurred in whole or part but for the actual alleged or threatened discharge, dispersal, seepage, migration, release or escape of pollutants at any time.
(2) Any loss, cost or expense arising out of any:
(a) Request, demand or order that any insured or others test for, monitor, clean up, remove, contain, treat, detoxify or neutralize, or in any way respond to, or assess the effects of pollutants; or
(b) Claim or "suit" by or on behalf of a governmental authority for damages because of testing for, monitoring, cleaning up, removing, containing, treating, detoxifying or neutralizing, or in any way responding to, or assessing the effects of pollutants.
Pollutants means any solid, liquid, gaseous, or thermal irritant or contaminant including smoke, vapor, soot, fumes, acid, alkalis, chemicals and waste. Waste includes material to be recycled, reconditioned or reclaimed.
As stated earlier, this Endorsement adds a limited amount of pollution liability. It has a separate Aggregate Limit, stated on the Endorsement (along with the premium for such coverage).
This endorsement modifies insurance provided under the following:
COMMERCIAL GENERAL LIABILITY COVERAGE PART
SCHEDULE
Limited Pollution Liability Extension Aggregate Limit: _______________________
Premium $__________________________________
(If no entry appears above, information required to complete this endorsement will be shown in the Declarations as applicable to this endorsement.)
1. Exclusion f. under COVERAGE A (Section 1) is replaced by the following:
f. (1) "Bodily injury" or "property damage" arising out of the actual, alleged or threatened discharge, dispersal, seepage, migration, release or escape of pollutants:
(a) At or from any premises, site or location which is or was at any time used by or for any insured or others for the handling, storage, disposal, processing or treatment of waste;
(b) Which are or were at any time transported, handled, stored, treated, disposed of or processed as waste by or for any insured or any person or organization for whom you may be legally responsible;
(c) At or from any premises, site or location, on which any insured or any contractors or subcontractors working directly or indirectly on any insured's behalf are performing operations if the operations are to test for, monitor, clean up, remove, contain, treat, detoxify or neutralize, or in any way respond to, or assess the effects of pollutants;
(d) At or from a storage tank or other container, ducts or piping which is below or partially below the surface of the ground or water or which, at any time, has been buried under the surface of the ground or water and then subsequently exposed by erosion, excavation or any other means if the actual, alleged or threatened discharge, dispersal, seepage, migration, release or escape of pollutants arises at or from any premises, site or location:
(i) Which is or was at any time owned or occupied by, or rented or loaned to, any insured; or
(ii) Which any insured or any contractors or subcontractors working directly or indirectly on any insured's behalf are performing operations if the pollutants are brought on or to the premises, site or location in connection with such operations by such insured, contractor or subcontractor.
(2) Any loss, cost or expense arising out of any:
(a) Request, demand or order issued or made pursuant to any environmental protection or environmental liability statutes or regulations that any insured test for, monitor, clean up, remove, contain, treat, detoxify or neutralize, or in any way respond to, or assess the effects of pollutants; or
loss, cost or expense arising out of
(b) Claim or suit by or on behalf of a governmental authority for damages because of testing for, monitoring, cleaning up, removing, containing, treating, detoxifying or neutralizing or in any way responding to or assessing the effects of pollutants.
Pollutants means any solid, liquid, gaseous or thermal irritant or contaminant including smoke, vapor, soot, fumes, acids, alkalis, chemicals and waste. Waste includes material to be recycled, reconditioned or reclaimed.
II. With respect to "bodily injury" or "property damage" arising out of the actual, alleged or threatened discharge, dispersal, seepage, migration, release or escape of pollutants:
A. The "Each Occurrence Limit" shown in the Declarations does not apply.
B. Paragraph 7. of LIMITS OF INSURANCE (Section III) does not apply.
C. Paragraph 1. of LIMITS OF INSURANCE (Section III) is replaced by the following:
1. The Limits of Insurance shown in the Declarations, or in the Schedule of this endorsement, and the rules below fix the most the insurer will pay regardless of the number of:
a. Insureds;
b. Claims made or "suits" brought; or
c. Persons or organizations making claims or bringing "suits."
D. The following are added to LIMITS OF INSURANCE (Section III):
8. Subject to 2. or 3. above, whichever applies, the Limited Pollution Liability Extension Aggregate Limit shown in the Schedule is the most the insurer will pay for the sum of:
a. Damages under Coverage A; and
b. Medical expenses under Coverage C
because of "bodily injury" or "property damage" arising out of the actual alleged or threatened discharge, dispersal, seepage, migration, release or escape of pollutants.
Subject to 8. above, the Medical Expense Limit is the most the insurer will pay under Coverage C for all medical expenses because of "bodily injury" sustained by any one person arising out of the actual, alleged or threatened discharge, dispersal, seepage, migration, release or escape of pollutants.
This Endorsement changes the form to comply with the Claims-Made version, and the last paragraph is the one that modifies the policy.
This endorsement modifies insurance provided under the following:
COMMERCIAL GENERAL LIABILITY COVERAGE PART
(CLAIMS‑MADE VERSION)
Paragraph l.c. of COVERAGE A ‑ BODILY INJURY AND PROPERTY DAMAGE LIABILITY (Section I ‑Coverages) is replaced by the following:
1. Insuring Agreement
c. A claim by a person or organization seeking damages will be deemed to have been made at the earlier of the following times:
(1) When notice of such claim is received and recorded by any insured or by us, whichever comes first; or
(2) When the insurer make settlement in accordance with paragraph l.a. above.
All claims for damages because of "bodily injury" to the same person, including damages claimed by any person or organization for care, loss of services, or death resulting at any time from the "bodily injury", will be deemed to have been made at the time the first of those claims is made against any insured.
The Commercial General Liability Policy covers a broad range of liability coverages. In some situations, the insured may want to restrict the coverages because they feel there is no exposure, or the exposure is very slight, for possible liability claims; they have additional coverage specifically covering those exposures; or they may simply want to lower their premiums.
Products Completed Operations Hazard – This particular Endorsement eliminates all Bodily Injury or Property Damage coverage for the Products Completed Operations Hazards.
Medical Payments – Medical Payments (Coverage C) is eliminated by this Endorsement.
Personal Injury and Advertising Injury – This Endorsement will eliminate this coverage (Coverage B).
Advertising injury – Advertising injury only is eliminated from the coverage.
Contractual Liability Limit – This Endorsement actually replaces coverage – it replaces broad form coverage with a limited contractual coverage that applies only to leasing of premises, “sidetrack” and easement agreements, and other contracts that may be so specified.
Fire Damage Legal Liability – This Endorsement eliminates fire damage legal liability coverage.
Pollution Liability Coverage Extension – This Endorsement will eliminate the bodily injury and property damage portions of the pollution exclusion, but will retain the exclusion for clean-up costs.
Injury for Leased Workers – This Endorsement provides employers’ liability coverage for leased and temporary workers. This is accomplished by changing the definition of “employee” used in the exclusion.
Definition of Products-Completed Operations Hazard – This Endorsement eliminates the need for bodily injury or property damage to occur away from the insured’s premises. This is accomplished by changing the definition.
Liquor Liability – This Endorsement provides liquor liability coverage by eliminating the exclusion for liquor liability.
Watercraft – This provides coverage for watercraft (boats) which are excluded in the Aircraft, Auto and Watercraft exclusion.
Various Professional and Business liability coverages are discussed in the next chapter. Because of the wide variety of coverages are available, there are numerous Endorsements that are necessary to exclude professional liability exposures from the Commercial General Liability policy. Even though these exposures are generally excluded, these endorsements provide specific exposures.
Designated Professional Services
Inspection, Appraisal and Survey Companies
Products and Professional Services
Druggists
Optical and Hearing Aid Businesses
Blood Banks
Engineers, Architects or Surveyors Professional Liabilities
Health or Cosmetic Services
Specified Health or Cosmetic Services
Professional Liability Exclusion
Computer Software
Electronic Data Processing
Health or Exercise Clubs
STUDY QUESTIONS
1. An________________ changes the base insurance policy.
A. Amendment
B. Addition
C. Endorsement
D. Exclusion
2. An Endorsement to the CGL policy, which provides for an additional reporting period is
A. Supplemental Extended Reporting Period Endorsement.
B. Claims Made Form.
C. Changes in Commercial General Liability Coverage Form insuring Agreement
D. Supplemental Time Extension Endorsement.
3. Blair Mfg. has three locations. For financial reasons they decide that they do not need to continue their CGL at the location in Phoenix. Therefore, the CGL policy would contain
A. a Supplemental Extended Reporting Period Endorsement.
B. Extended Reporting Form for Specific Accidents, Work or Location Endorsement.
C. Exclusion of Specific Accidents, Products, Work or Location Endorsement.
D. Two-thirds Coverage Endorsement.
4. Berlin Produce Co. hires many newly arrived immigrants and also a large number of disabled persons. Because of the increased possibilities of lawsuits for harassment, discrimination, demotion, etc., the Human Resources Manager convinced the company that they needed to carry a separate policy covering employment practices. Berlin also carries a CGL insurance policy and other commercial coverages. The management agreed that they should purchase this employment practices insurance, but the budget was tight. What could they do?
A. They should carry both anyway as the cost of one lawsuit could pay for all the insurance.
B. They should hire a new Human Resources Manager, one who will make sure that no
lawsuit arises out of employment practices.
C. They could hire the best employment attorneys in the area, just in case.
D. They could have their CGL changed with the Employment Related Practices Exclusion Endorsement. This would reduce the premium on the CGL and they could put the savings towards the new special policy.
5. Creative Artists is a non-profit organization that works with down-and-out artists and artists families. They have been threatened a couple of times with lawsuits, so they purchase a CGL policy. Twice a year, their principal fundraising activity is an art exhibit where alcoholic drinks are served. Which of the following is true?
A. Since it is a non-profit, there is no liquor liability hazards with non-profits.
B. The CGL will exclude all liquor liability.
C. They would probably get an Amendment of Liquor Liability, which excludes liquor liability because of the fundraising activity.
D. The CGL would not be issued, or would be cancelled if they were not aware of the type of fundraising used by the nonprofit organization.
6. Beams Leather Co. purchases a CGL policy. They are concerned about the pollution they might generate in some of their processing, even though they have a good record and keep tight control on any possible pollutants. They find that the limits in the CGL policy for pollution is very small. What can they do?
A. There is not much they can do. Companies are not crying for pollution policies.
B. They can increase the amount by using a Limited Pollution Liability Extension Endorsement.
C. They can use a Total Pollution Exclusion Endorsement to increase pollution coverage.
D. They can have the CGL policy endorsed to include whatever amount Beams wants for pollution damage liability.
7. CGL policies can have endorsements to restrict coverage. Which Endorsement does this?
A. Contractual Liability Limit.
B. Pollution Liability Coverage Extension.
C. Liquor Liability.
D. Watercraft.
8. In order to exclude certain professional liability coverages, certain endorsements provide specific exposure to be excluded. Which of the following is NOT such an Endorsement? A. Engineers, Architects or Surveyors Professional Liabilities.
B. Computer Software.
C. Health Clubs.
D. Manufacturing concerns
9. When a policy is renewed, certain specified accidents are excluded from further coverage, and are moved to the Extended Reporting Period. This Endorsement would be
A. Changes in Commercial General Liability Coverage Form Insuring Agreement.
B. Renewal Restrictions for Extended Reporting Endorsement.
C. Extended Reporting Periods for Specific Accidents, Products, Works or Location.
D. Exclusion of Specific Accidents, Products, etc.
10. The Supplemental Extended Reporting Period Endorsement is used with
A. the Claims-Made CGL policy.
B. the Claims-Reported CGL policy.
C. any version of the CGL policy.
D. only Commercial Property Policy.