COMPARE: AAIS CU 0002–COMMERCIAL UMBRELLA LIABILITY COVERAGE 09 10 EDITION TO ISO CU 00 01–COMMERCIAL LIABILITY UMBRELLA COVERAGE FORM 04 13 EDITION

(October 2020)

This comparison outlines and highlights the similarities and differences between the American Association of Insurance Services (AAIS) CU 0002–Commercial Umbrella Liability Coverage 09 10 Edition and the Insurance Services Office (ISO) CU 00 01–Commercial Liability Umbrella Coverage 04 13 Edition. In order to provide an easy to read side-by-side comparison, the descriptions and comparisons are much less detailed than in the respective coverage forms analyses.

Related Articles:

CU 0002–Commercial Umbrella Liability Coverage Analysis

CU 00 01–Commercial Liability Umbrella Coverage Form Analysis

Note: This comparison follows the AAIS coverage form order and format.

AAIS AND ISO COMMERCIAL UMBRELLA LIABILITY COVERAGE COMPARISON
Section	AAIS CU 0002 09 10 Edition	ISO CU 00 01 04 13 Edition
Table of Contents	Explains how this policy is organized and assists locating certain items	No corresponding section
Introduction	Explains that there is a state-specific endorsement and that there may be others. Refers to definitions for words and phrases that have special meaning	Similar. On the declarations Same Refers to Section II–Who Is An Insured. Suggests reading the coverage form
Agreement	Explains that the coverage provided is subject to various terms and the named insured paying the premium	No corresponding section in the coverage form but is provided on the declarations
Definitions	Located at the beginning of the policy	Located at the end of the coverage form
You and your	The named insured person or persons, organization, or entity on the declarations	Similar. In the introduction. More detail under Section II–Who Is An Insured
You and your	Newly acquired entities for up to 90 days	Same. In the introduction. More detail under Section II–Who Is An Insured
We, us, and our	The insurance company that provides coverage	Same
Advertisement	Any type of public notice or announcement that offers the named insured's merchandise or services to the public	Similar
Auto	A land motor vehicle, trailer, or semi-trailer for public road use. In addition, vehicles subject to financial responsibility laws. Excludes mobile equipment	Similar
Bodily injury	Bodily harm, sickness, or disease of a person, including death. Excludes mental or emotional injury, suffering, or distress that does not result from the bodily injury	Same

Section	AAIS CU 0002 09 10 Edition	ISO CU 00 01 04 13 Edition
Claims-made	Liability insurance that pays for only claims made during the policy term and on or after the retroactive date	Not a defined term
Coverage territory	The world except jurisdictions, nations, or countries subject to United States economic sanctions or embargoes	Same
Covered auto	Autos that underlying insurance covers for liability	Similar
Covered contract	Specific defined contracts. Subject to certain limitations	Refers to it as insured contract. Same except it does not restrict the following: Physical damage to rental cars Architect, engineer, or surveyor indemnity for action or supervision
Damages	Monetary compensation for persons or parties that sustain injury	Not a defined term
Declarations	Pages labeled declarations, supplemental declarations, or schedules	Not a defined term
Designated insured	Certain individuals in the definition of insured and employees authorized to handle claims	Not a defined term. However, designated insured as used in the insuring agreement is similar.
Employee	Includes leased workers but not temporary workers	Same
Executive officer	Person who holds an officer position that one of the named insured's governing documents created	Same
Impaired property	Property neither damaged nor useful	Same
Indemnitee	Under a contract or agreement, a person or organization for whom an insured has assumed liability for damages due to bodily injury or property damage	Not a defined term
Insured (Other than Auto)	Based on the named insured's type of business entity	Not a defined term. Addressed under Section II–Who Is An Insured. Same
Insured (Auto)	Based on underlying coverage	Subject to six specific criteria. Does not refer to underlying
Leased worker	A person the named insured leases from a labor leasing business to perform duties related to the named insured's business subject to a contract or agreement. It does not include temporary workers.	Same
Limit	The amount of coverage that applies	Not a defined term
Loading or unloading	Property moved to, on, and from an auto	Similar
Mobile equipment	Extensive list of equipment	Same
Occurrence	An accident, including continuous or repeated exposure to similar conditions	Similar but uses "substantially" in place of "similar" and "general harmful" precedes the word "conditions"
Personal and advertising injury	Injury due to certain offenses	Similar

Section	AAIS CU 0002 09 10 Edition		ISO CU 00 01 04 13 Edition
Pollutant	Any solid, liquid, gaseous, thermal, or radioactive irritant or contaminant. Includes visible and invisible electrical, magnetic, or electromagnetic particles and fields		Similar. Does not refer to visible or invisible electrical, magnetic, or electromagnetic particles and fields
Products	Goods or merchandise the named insured manufactures, sells, handles, disposes of, or distributes		Referred to as Your Product. Similar
Products/completed work hazard	Bodily injury or property damage from products or completed work		Referred to as Products-Completed Operations Hazard. Similar but less exhaustive
Property damage	Damage or destruction of or loss of use of tangible property. Includes loss, cost, or expense related to pollutants with respect to owning, maintaining, or using covered autos.		Similar but limits pollution coverage with respect to covered autos to the extent of underlying coverage. Specifically lists property that Electronic Data includes
Recreational vehicle	A golf cart, snowmobile, or land motor vehicle designed for recreational use off public roads		Not a defined term
Retained limit	Either the self-insured retention or the available limits of underlying insurance on the declarations		Similar
Self-insured retention	The dollar amount the insured pays before this insurance triggers when underlying coverage is not provided		Similar
Silica	All forms of silicon dioxide, silica mixed with other compounds, and silica dust mixed with other dust particles		Not a defined term
Suit	Suits include alternative dispute or arbitration proceedings		Same
Temporary worker	Temporary substitute, seasonal, or short-term worker		Same
Terms	The provisions, limitations, exclusions, conditions, and definitions that apply to this policy		Not a defined term. Essentially included by inference in the coverage form's opening sentence
Underlying insurance	Liability coverages listed on the schedule of underlying insurance. Includes replacement policies		Similar. Does not include replacement policies
Underlying insurer	Insurance companies that issue underlying insurance coverage forms or policies		Same
Volunteer worker	A person who donates his or her time or services.		Same
Your work	Work or operations plus materials, warnings, and warranties		Same
Pollution cost or expense	Not a defined term. Used with the exclusion		Any loss, cost, or expense that arises from any requirement for the named insured to respond to the effects of pollutants
Ultimate net loss		Not a defined term		The term used in the Limits section. It means legally obligated damages less recoveries.

Section	AAIS CU 0002 09 10 Edition	ISO CU 00 01 04 13 Edition
Commercial Umbrella Liability Coverages		Section I–Coverages
	Coverage L–Bodily Injury Liability and Property Damage Liability	Coverage A–Bodily Injury and Property Damage Liability
Insuring Agreement	Pays covered damages the insured is legally obligated to pay in excess of the retained limit	Similar but refers to the ultimate net loss
	The right and duty to defend against suits when underlying insurance does not apply or its limits are exhausted.	Similar
	The company can participate with the insured or the underlying carrier to defend.	Similar
	Duty to defend includes the right to investigate and settle claims or suits.	Similar
	The amount paid for damages is limited as described under How Much We Pay.	Similar but refers to ultimate net loss as Section III–Limits of Insurance describes
	Payment of limits ends the duty to defend	Similar
	No other obligation or liability unless provided for under Supplemental Payments	Similar. Refers to Supplementary Payments–Coverages A and B
	Coverage applies to only bodily injury or property damage from occurrences that take place in the coverage territory. The bodily injury and property damage must take place during the policy period and not be part of previous losses that took place before this coverage’s inception date. Those losses are the previous carrier’s responsibility.	Similar
	The coverage provided for bodily injury or property damage includes continuation, resumption of, or change in such injury or damage after this policy period ends.	Similar
	Bodily injury damages include those claimed for care, loss of services, or death that results from the bodily injury.	Similar
	The most paid on behalf of an additional insured covered by underlying insurance due to a requirement in a contract or agreement is the amount required in the contract or agreement. This is reduced by amounts that underlying insurance pays.	Similar. Referred to in Section II–Who Is An Insured
	Injury or damage covered by underlying insurance may be subject to a separate limit. This insurance applies only if that limit is on the Schedule Of Underlying Insurance.	Addresses retained limits and sub-limits in underlying insurance and how this insurance applies in those cases

Section	AAIS CU 0002 09 10 Edition	ISO CU 00 01 04 13 Edition
Exclusions
Expected or intentional acts	Excluded	Excluded
Contractual Liability	Excluded, except for covered contracts	Similar, except refers to them as insured contracts
ERISA violations	Excluded	Excluded
Workers compensation or similar laws	Excluded	Excluded
Employed master of a vessel or crew member	Excluded	No corresponding exclusion
Owning or maintaining an auto that is not a covered auto	Excluded	Excluded
Automobile no-fault, uninsured motorists, underinsured motorists, or first party property damage, personal injury protection, or auto medical payments coverage	Excluded	Excluded
Pollution	Similar to most underlying pollution exclusions	Absolute exclusion but broadens to match underlying coverage on following-form basis. Makes it similar
Pollution cleanup expense	Excluded	Excluded
War	Excluded	Excluded
Aircraft	Excluded, unless underlying coverage insures aircraft	Excluded, unless underlying coverage insures aircraft. Broadens to match underlying coverage on following-form basis
Watercraft	Excluded, unless underlying coverage insures watercraft	Excluded, unless underlying coverage insures bodily injury or property damage that arises from virtually any activity that involves watercraft. Subject to specific exceptions and unless underlying coverage insures watercraft. Broadens to match underlying coverage on following-form basis
Liquor liability (Applies to only liquor related businesses)	Excluded, unless there is underlying liquor liability coverage	Excluded, unless there is underlying liquor liability coverage. Broadens to match underlying coverage on following-form basis
Employer’s liability	Excluded, unless there is underlying employer's liability coverage	Excluded, unless there is underlying employer's liability coverage. Broadens to match underlying coverage on following-form basis
Professional services	Excluded	Excluded. Lists examples. Also, excludes claims that allege negligence or other wrongdoing

Section	AAIS CU 0002 09 10 Edition	ISO CU 00 01 04 13 Edition
Employment-related practices	Excluded	Excluded
Fellow employee auto	Excluded	No corresponding exclusion
Racing autos, mobile equipment, and recreational vehicles	Excluded	Excluded. Does not mention recreational vehicles
Property damage to owned, occupied or rented property	Excluded	Excluded
Property damage to property transported on autos	Excluded, with exception	Excluded. Similar exception
Property damage to sold or abandoned property	Excluded, with exception	Excluded. Similar exception
Property damage to loaned property	Excluded, with exception	Excluded. Similar exception
Property Damage to property in care, custody or control	Excluded, with exception	Excluded. Similar exception
Property damage to property that arises from work	Excluded, with exception	Excluded. Similar exception
Property damage due to insured’s faulty work	Excluded, with exception	Excluded. Similar exception
Property damage to products	Excluded	Excluded
Property damage to work that arises from it	Excluded, with exception	Excluded. Similar exception
Property damage to impaired property	Excluded, with exception	Excluded. Similar exception
Product recall expenses	Excluded	Excluded
Personal and advertising injury	Excluded	Excluded
Electronic data	Excluded	Only property damage excluded. Broadens to match underlying coverage on following-form basis
Violations of laws concerning communicating or distributing material or information	Excluded	Excluded
Lead	Excluded	No corresponding exclusion
Silica	Excluded	No corresponding exclusion
Asbestos	Excluded	No corresponding exclusion

Section	AAIS CU 0002 09 10 Edition	ISO CU 00 01 04 13 Edition
	Coverage P–Personal and Advertising Injury Liability	Coverage B–Personal and Advertising Injury Liability
Insuring Agreement
	Pays covered damages the insured is legally obligated to pay in excess of the retained limit	Similar, but refers to the ultimate net loss
	Right and duty to defend the insured against suits seeking such damages when underlying insurance does not apply or its limits are exhausted.	Similar
	Can participate with the insured or the underlying carrier to defend	Similar
	Duty to defend comes with the right to investigate and settle claims or suits	Similar
	The amount paid for damages is limited as described under How Much We Pay	Similar but refers to ultimate net loss as Section III–Limits of Insurance describes
	Payment of limits ends duty to defend	Similar. Refers to Supplementary Payments–Coverages A and B
	No other obligation or liability except as Supplemental Payments provides	Similar. Refers to Supplementary Payments–Coverages A and B
	Coverage applies to only personal and advertising injury offenses that take place in the coverage territory and during the policy period	Similar
Exclusions
Pollution	Excluded	Excluded
Pollution testing expense	Excluded	No corresponding exclusion
War	Excluded	Excluded
Professional services	Excluded	Excluded. Lists examples. Also excludes claims that allege negligence or other wrongdoing
Employment-related services	Excluded	Excluded
Intentional acts	Excluded	Excluded
Criminal acts	Excluded	Excluded
Prior publication or knowingly false information	Excluded	Excluded. Uses two separate exclusions
Breach of contract	Excluded	Excluded
Quality or performance	Excluded	Excluded
In the advertising, broadcasting, publishing, or telecasting business	Excluded	Excluded
Wrong description of prices	Excluded	Excluded

Section	AAIS CU 0002 09 10 Edition	ISO CU 00 01 04 13 Edition
Contractual liability	Excluded	Excluded, except for liability for false arrest, detention, or imprisonment assumed in a contract or agreement
Infringement of copyright, patent, trademark, or trade secret	Excluded	Excluded
Electronic chatrooms or bulletin boards	Excludes electronic chat rooms, social networking and gripe sites, blogs, bulletin boards and other forums it has authority to manage or update	Excludes only electronic bulletin boards and chatrooms that the named insured controls
Misleading use of another’s name in electronic media	Excluded	Excluded
Violations of laws concerning communicating or distributing material or information	Excluded	Excluded
Lead	Excluded	No corresponding exclusion
Silica	Excluded	No corresponding exclusion
Asbestos	Excluded	No corresponding exclusion
Supplemental Payments		Supplementary Payments–Coverages A and B
The insurance company pays for all items listed in this section if it has the duty to defend. All payments are outside the limit of insurance.	Yes	Yes
What Must be Done in Case of Loss		Section IV–Conditions–3. Duties in the Event of Occurrence Offense, Claim, or Suit
Cooperation	The named insured must cooperate with underlying carriers. All insureds must cooperate with the umbrella carrier.	Similar. Does not mention underlying carrier
Notice	The named insured must promptly notify the insurance company of an occurrence or offense that might become a claim and provide details.	Same
Voluntary payments	Voluntary payments the insured makes do not obligate the insurance company.	Same
Other duties	The insured must give the insurance company copies of all legal papers, demands, and notices that relate to a claim or suit brought against any insured and cooperate with the company in all respects.	Same

Section	AAIS CU 0002 09 10 Edition	ISO CU 00 01 04 13 Edition
How Much We Pay		Section III–Limits Of Insurance
The limits on the declarations, regardless of the number of insureds, persons, or organizations sustaining injury or damage, claims made, suits brought, or vehicles or watercraft involved in an accident	Yes	Similar. Does not mention watercraft
Aggregate limit	The Aggregate Limit is the most paid under Coverages L and P. It does not apply to use of autos or loading or unloading autos.	Similar. Refers to ultimate net loss. It does not mention loading or unloading a covered auto.
Each occurrence limit	The most paid under Coverage L for a single occurrence	Similar. Refers to ultimate net loss
Personal and advertising injury limit	The Personal And Advertising Injury Limit is the most under Coverage P. It is subject to the Aggregate Limit.	Similar. Refers to ultimate net loss
Non-concurrency	Limited to only losses within policy period	Similar
Application of aggregate	The Aggregate applies per 12- month policy period with exceptions.	Same
Conditions		Section IV–Conditions
Appeals	Yes	Similar. This provision does not increase the company’s liability beyond the limits that apply that Section III–Limits of Insurance describes.
Assignment	Yes	Similar to IL 00 17–Common Policy Conditions–Transfer of Your Rights and Duties Under This Policy
Bankruptcy of an insured	The insurance company is not relieved of its obligations if an insured becomes bankrupt or insolvent.	Similar. Also mentions the insured's estate
Bankruptcy of underlying insurer	This insurance does not replace underlying insurance written by a carrier that becomes bankrupt or insolvent. It continues to apply as if the underlying insurance was still in force.	Similar but also states that the insurance company is not relieved of its obligations if an underlying carrier becomes bankrupt
Cancellation and nonrenewal	Refers to separate state-specific amendatory endorsement	Similar to Cancellation in IL 00 17–Common Policy Conditions. However, state specific endorsement may take precedence.
Change, modification, or waiver of policy terms	Only done by insurance company-issued endorsements or in writing	Similar to IL 00 17–Common Policy Conditions–Changes
Conformity with statute	Any terms in the coverage form that conflict with state laws are amended to conform to them	No corresponding condition
Examination of books and records	The insurance company may examine the named insured's records that relate to this insurance any time during the policy period and up to three years after.	Similar to IL 00 17–Common Policy Conditions–Examination of Your Books and Records

Section	AAIS CU 0002 09 10 Edition	ISO CU 00 01 04 13 Edition
Inspections	Inspecting the property and operations is the insurance company’s option. Doing so is for the company's benefit and does not warrant safety or compliance with laws.	Similar to IL 00 17–Common Policy Conditions–Inspections and Surveys
Knowledge of bodily injury/property damage	Outlines the earliest times when such knowledge is understood to have occurred	Part of the insuring agreement
Legal action against us	Outlines the terms and conditions that must be met before the insurance company can be sued	Similar. Also defines an agreed settlement
Maintenance of underlying insurance	Underlying insurance must be maintained. If it is not, the company treats it as though it is still in force. The named insured must notify the insurance company of any changes in the underlying insurance.	Similar. In addition, states that any underlying insurance that broadens its coverage during the policy term is treated as being unchanged.
Misrepresentation, concealment, or fraud	Any of these or similar acts voids coverage.	Similar. Referred to as Representations or Fraud.
Subrogation	An insured's rights of recovery against others are assigned to the insurance company to the extent of its payment and cannot be impaired or waived after a loss. Written waivers can be done before a loss.	Similar. Referred to as Transfer of Rights of Recovery Against Others to Us. Adds that the insurance company can ask the insured to bring suit or transfer the rights and help it enforce them.
Transfer of defense	The duty to defend transfers to the insurance company when the underlying limit is used up paying judgments and settlements. It cooperates with the underlying carrier in all aspects of the transfer.	Similar
Separate insureds	Coverage applies separately to each insured subject to a claim or suit but does not affect the limits.	Similar. Referred to as Separation of Insureds.
Premium	States that the premium charge is based on the company's rules and rates at inception. It also details how additional and return premiums are handled if it is a deposit premium.	Similar. Referred to as Premium Audit.
Insurance under more than one policy	Details that this insurance is excess over all other insurance (except insurance specifically written as excess over this coverage) and amounts it pays	Similar. Referred to as Other Insurance. Refers to ultimate net loss
Loss payable	Outlines that this insurance pays only after the underlying carrier or insured's obligations are determined	Similar. Refers to ultimate net loss
Extended coverage territory	Outlines what the insurance company does when events take place outside the coverage territory and how claims or suits are handled	Referred to as Expanded Coverage Territory. Similar
When we do not renew	No corresponding condition but may be addressed in the separate state-specific amendatory endorsement	States that the insurance company mails or delivers notice of non-renewal to the first named insured at least 30 days before the expiration date
Nuclear Energy Liability	Excluded	Similar to IL 00 21–Nuclear Energy Liability Exclusion Endorsement