CG DS 01–COMMERCIAL GENERAL LIABILITY DECLARATIONS

(April 2019)

INTRODUCTION

Each insurance company develops and modifies its own version of the advisory Insurance Services Office (ISO)
CG DS 01–Commercial General Liability Declarations to meet its specific needs and purposes. It includes descriptive and inclusive language that clearly identifies the risk and coverage information that relates to specific sections in the coverage form. It also includes rating and premium information that informs the named insured of the exact premium charges made as well as the rates that will be used when developing the final premium.

GENERAL INFORMATION

This section includes the following information:

• Policy number
• Insurance company name
• Producer name
• Named insured

Note: The order in which multiple named insured are listed matters. The first named insured has duties and responsibilities that are not shared with the other named insured. It must pay the premium and will receive any return premium. It is also the only insured that will receive notice of cancellation. If that first named insured is deleted from the policy, the second named insured will automatically move up the list to be the first named insured.

• Mailing address

• Policy period expressed as month, day, and year commencing at 12:01 a.m. at the policy mailing address

AGREEMENT

In this section, the insurance company agrees to provide the named insured with insurance in the coverage form that applies, subject to its terms and conditions and the premium being paid.

LIMITS OF INSURANCE

The limits of insurance are the most paid, regardless of the number of insureds, claims made, suits brought, or persons or organizations that make claims or bring suits. This section includes the following information:

• Each Occurrence Limit

Note: This is the most paid for the total of damages under Coverage A–Bodily Injury and Property Damage Liability, Damage to Premises Rented to You and Medical Payments. It is subject to the Aggregate Limits.

Example: Randall's Rapid Rim-Fire Cartridges and Shooting Range has a Commercial General Liability Coverage Form with a $1,000,000 Each Occurrence Limit. The ammunition magazine explodes while the range is packed with shooters, injuring 25 of them. The total value of their claims is $3,000,000. The coverage form pays only the $1,000,000 Each Occurrence Limit, subject to the General Aggregate Limit. Randall must respond to the remaining $2,000,000 in claims from other insurance or his own financial resources.

• Damage to Premises Rented to You Limit (any one premises)

Note: This is the most paid under Coverage A for damages because of property damage to any premises rented to the named insured or, in case of fire, that the named insured rents or temporarily occupies with the owner's permission. It is subject to the Each Occurrence Limit.

Example: The Damage to Premises Rented to You Limit is $50,000. Randall's cartridge-packing operation burns down a location he rents at a different location. The total loss amounts to $150,000. Randall's Damage to Premises Rented to You coverage responds for its $50,000 limit. Randall must respond to the remaining $100,000 of the loss from his own resources.

• Medical Expense Limit (any one person)

Note: This is the most paid under Coverage C for all medical expenses because of bodily injury that any one person sustains. It is subject to the Each Occurrence Limit.

• Personal and Advertising Injury Limit (any one person or organization)

Note: This is the most paid under Coverage B for the total of all damages because of all personal and advertising injury that any one person or organization sustains. It is subject to the General Aggregate Limit.

Example: Princely Mansions has a $1,000,000 Personal and Advertising Injury Limit and a $2,000,000 Aggregate Limit. Phyllis, the owner, is furious because her customers are not loyal and refuse to pay on time. She takes out an ad that identifies each such customer. Many of them sue her for defamation of character. Phyllis is covered for up to $1,000,000 for each person’s claim but the most paid is the $2,000,000 General Aggregate Limit.

• General Aggregate Limit

Note: This is the most paid for the total of damages under Coverage A, damages under Coverage B, and medical expenses under Coverage C. This does not include damages that arise out of bodily injury or property damage included in the products/completed operations hazard.

Example: Princely Mansions has a problem. Phyllis’ rant cost $750,000 in personal injury loss payments. In addition, five slip and falls have caused $25,000 in medical expenses. Those slip and falls also resulted in lawsuits with payments of $1,000,000. This means $1,775,000 of the General Aggregate Limit is already used up which means that only $225,000 remains to pay any additional claims that may arise.

• Products/Completed Operations Aggregate Limit

Note: This is the most paid under Coverage A for damages because of bodily injury or property damage included in the products/completed operations hazard.

Example: Randall has Commercial General Liability Coverage with a $3,000,000 Products/Completed Operations Aggregate Limit. He incurs 8 separate products liability claims during the policy period for injuries to his customers that arise out of use of his products. The total amount of the 8 claims is $4,000,000. The $3,000,000 Products/Completed Operations Aggregate Limit is the most paid for these claims. Randall is responsible for the remaining $1,000,000.

RETROACTIVE DATE

This provision applies only to CG 00 02–Commercial General Liability Coverage Form–Claims-Made Basis. Insurance does not apply to any bodily injury, property damage, or personal and advertising injury loss that occurs before the retroactive date entered in the space provided. If no retroactive date applies, the word "None" must be entered. If neither the word “None” or a date is entered, the retroactive date is the same as the policy effective date.

DESCRIPTION OF BUSINESS

The information in this area of the form serves two purposes. The form of business identifies the type of entity that applies to the named insured. The type of entity is referred to in Section II–Who Is an Insured. The listed forms of business are:

• Individual
• Partnership
• Joint Venture
• Trust
• Limited Liability Company
• Organization other than the above. This includes a corporation.

Note: If there is more than one named insured, there may be more than one form of business.

The second part of this section provides space for a description of the business to be entered. This is for information and identification purposes only and has no direct impact on the coverage provided.

ALL PREMISES YOU OWN, RENT OR OCCUPY

The location number and location information for all premises the named insured owns, rents, or occupies is entered in the spaces provided. If more space is needed, the schedule continues on a separate endorsement. The location number is used for quick reference as well as for rating purposes.

Note: Coverage is not restricted to only the locations listed.

CLASSIFICATION AND PREMIUM

The actual rating information for the coverage provided is entered in this section. The accuracy of this information is very important when any classification is subject to audit. The named insured can use the information to anticipate changes at audit due to changes in the estimated premium base. Information in this section may be entered on a separate schedule because of space limitations. The following information is included in this section:

• Location number(s)
• Classification description(s)
• Classification description(s)’ corresponding code number(s)
• Premium base(s)
• Premises/Operations rate(s)
• Products/Completed Operations rate(s)
• Premises/Operations advance premium(s)
• Products/Completed Operations advance premium(s)
• State or other taxes that apply
• Total premium subject to audit (if auditable)
• The premium is payable at inception or at each anniversary if the policy period is more than one year and the premium is paid in annual installments
• Audit period is selected as annually, semi-annually, quarterly, or monthly (if applicable)

ENDORSEMENTS

This section includes endorsements included when the policy is issued. Subsequent endorsements issued after inception obviously cannot be listed but are included by inference.

STATEMENT

The section states that the declarations, the common policy conditions, the coverage form (or forms), and any endorsements complete the policy number referred to above.

COUNTERSIGNATURE

This section has spaces for the authorized representative's countersignature and date. The insurance company's officers' facsimile signatures may also be in this section, on the coverage form’s first page, or elsewhere at its option.