AAIS Commercial Liability Coverage (Broad Form Coverage) Form GL-200, Ed. 1.0 Declarations

AAIS COMMERCIAL LIABILITY COVERAGE FORM DECLARATIONS

(December 2018)

 

INTRODUCTION

Every insurance company develops or modifies and uses its own version of the Commercial Liability Coverage Declarations. The American Association of Insurance Services (AAIS) developed an advisory Commercial Liability Coverage Declarations for use with the GL-200–Commercial Liability Coverage Form. Most insurance companies use it as a template to develop their own declarations.

The AAIS advisory declarations form is made up of nine sections.

Section 1- Insurance Company and Producer Information

  • The name and mailing address of the insurance company providing the coverage appears in this section.
  • The same information for the producing agent also appears in this section.

Section 2–Named Insured and Policy Number

  • The full legal name of the insured appears in this section. If there is not enough space to list every named insured entity, only the first named insured may be shown in this section with the remaining named insureds listed on a separate endorsement.
  • The full and complete policy number that applies to the coverages provided is also shown in this section.

Section 3–Mailing Address, Policy Period and Business Description

  • The full and complete mailing address of the first named insured is shown in the space provided. It should be as complete as possible and include the post office box number, if one applies, in addition to the nine-digit ZIP Code.

Note: This is the address that is used to mail information about the policy and for mailing cancellations, so must be kept current.

  • The policy coverage period is also shown in the space provided. This includes the coverage inception or effective date and the expiration date. An important entry on the form states that coverage begins and ends at 12:01 a.m., standard time, at the mailing address.

 

Example: Timothy Kilns has locations in New York, Colorado and California. Its mailing address is in California. The policy inception and expiration is as of 12:01 am in California. If a loss occurs at the New York location at 1:00 AM, EST the prior policy must respond to that loss because the policy does not start until 12:01 AM California time which is 3:01 AM in New York.

mail box
  • Entries are required in the space provided to show an appropriate but brief description of the nature of the insured's business or the operations conducted.

Section 4–Type of Business and Location of Insured Premises 

  • The type of business entity must be shown in this section. The types of entities that can be listed are Individual, Partnership, Joint Venture or Limited Liability Company. If the entity is other than one of these, the "Other" entry must be checked, and a description of the entity involved made in the space provided.

Note: If more than one named insured is shown in Section 2, more than one of these business entities may apply and be checked.

If Limited Liability Company is selected, endorsement GL-914-Limited Liability Company must be attached because a limit liability company is not described within the GL-200.

  • An entry also appears in this section that states that all known exposures as of the policy inception date are identified below. The below is not very specific but could be referring to the location list requested next.
  • The locations of all premises owned, rented, occupied or controlled by the insured as of the policy inception date are listed and described in the spaces provided. If there is not enough space to list every location, additional locations that cannot fit in the space are listed on a separate endorsement.

Note: Locations that are not listed may or may not be covered. If the information was intentionally not provided to the insurance company coverage may be denied because of the Misrepresentation Condition. However, if the location was not listed due to a clerical error, coverage may still apply.

Section 5–Limits of Liability

 The limits are shown in the spaces provided:

  • Each Occurrence Limit
  • Coverage P Limit for Personal Injury Liability and Advertising Injury Liability
  • Medical Payments Limit which applies per person
  • General Aggregate Limit for other than Products/Completed Work
  • Aggregate Limit for Products/Completed Work
  • Fire Legal Liability Limit which applies per occurrence

A space is provided to check that Products/Completed Work is not covered. If a check is made in the space provided, the Each Occurrence Limit does not apply to this excluded coverage and there should be no limit in the Aggregate Limit for Products/Completed Work.

Spaces are also provided to show the premium charges made separately for Non-Owned Auto Liability Coverage and Hired Auto Liability Coverage if coverage is provided.

Section 6–Classifications

This Section is the rating section of the declaration. The entries required are:

  • Classification/Description
  • Class Code
  • Rating Basis
  • Rate
  • Premium
  • Deposit Premium

Section 7–Endorsements

Endorsements attached as of the policy inception date are listed in the space provided by form number and title.

Section 8–Countersignature and Countersignature Date

  • The resident agent of the state in which coverage is provided signs his or her name in the space provided.
  • The date that the countersignature is done is entered in the space provided.

Section 9–Company Officers’ Signatures Section

The actual or facsimile signatures of the officer or officers of the insurance company providing coverage are shown in the spaces provided in this section.