CU 0052–COMMERCIAL UMBRELLA LIABILITY DECLARATIONS

(October 2020)

INTRODUCTION

The American Association of Insurance Services (AAIS) developed CU 0052–Commercial Umbrella Liability Declarations to use with CU 0002–Commercial Umbrella Liability Coverage. This is only one of a number of possible formats, since each insurance company usually develops its own declarations. It incorporates everything necessary to identify the coverages the policy provides.

GENERAL SECTION

The following entries are part of the general section:

• Policy Number

• Insurance Company Name
• Producer Name

Note: The insurance company’s and producer’s mailing addresses or other identifying information may also be entered in this area.

NAMED INSURED SECTION

The following entries are part of the named insured section:

• Named Insured and Mailing Address

Note: If coverage applies to more than one named insured, they are usually listed or named on a separate endorsement. It is important that the mailing address be accurate and complete, so the first named insured receives all mailings on a timely basis.

• The named insured's form of legal entity. The five options available are Individual, Partnership, Limited Liability Company, Joint Venture, and Other.

Note: Other includes corporations.

• Description of Business

A brief description of the named insured's primary business is entered in this area.

• Policy Term

This includes the effective and expiration dates expressed as month, day, and year.

Note: Coverage usually begins at 12:01 a.m. Standard Time at the mailing address location.

• Retroactive Date (if any)

Note: The retroactive date applies to only claims-made coverage. The insured often wants it to be the earliest date that coverage was on a claims-made basis. However, insurance companies usually want later retroactive dates so they can limit their exposure.

STATEMENT

This section states that this declarations replaces any or all declarations issued previously. It specifies that the coverage provided applies only to losses, accidents, offenses, or occurrences that take place during the policy term. It also explains that each one-year period that ends on the anniversary date is a separate policy period with respect to coverage written on a continuous until cancelled basis.

COMMERCIAL UMBRELLA LIABILITY COVERAGE LIMITS OF INSURANCE SECTION

This section has three specific limits of insurance:

• Each Occurrence Limit
• Personal and Advertising Injury Limit
• Aggregate Limit

PREMIUM SECTION

This section has spaces to enter the following:

• Premium
• Deposit Premium
• Minimum Earned Premium
• Audit Period

The audit period options are Annual, Semi-annual, Quarterly, and Monthly.

RETAINED LIMIT

Self-insured Retention

The self-insured retention functions like a deductible. It is the dollar amount the named insured pays before this insurance applies. However, this applies to only losses that the umbrella covers that underlying insurance does not cover.

SCHEDULE OF UNDERLYING INSURANCE

Commercial Liability Limits

This section has spaces to enter limits for the following underlying insurance:

• Each Occurrence
• Personal and Advertising Injury
• General Aggregate
• Products/Completed Work Aggregate
• Other (specify)

The following selections can be made:

• Includes Personal Injury and Advertising Injury Liability Coverage
• Includes Broad Form Contractual Liability Coverage
• Includes Non-Owned Auto Liability Coverage/Hired Auto Liability Coverage
• Occurrence Form
• Claims-Made Form

Spaces are available to enter the following information for the underlying insurance:

• Retroactive Date (if applicable)
• Insurance Company
• Policy Number
• Policy Period

Commercial Auto Liability Limits:

This section has spaces to enter limits for the following underlying insurance:

• Combined Single Limit or
• Split Limits
• Bodily Injury–Each Person
• Bodily Injury–Each Accident
• Property Damage–Each Accident
• Garage Aggregate Limit for Other Than Autos (if applicable)

Non-Owned Auto Liability Coverage/Hired Auto Liability Coverage may be provided by entering a check mark in the space provided.

Spaces are available to enter the following information:

• Insurance Company
• Policy Number
• Policy Period

Employer's Liability Limits

This section has spaces to enter limits for the following underlying insurance:

• Combined Single Limit or
• Split Limits
• Bodily Injury by Accident–Each Accident
• Bodily Injury by Disease–Policy Limit
• Bodily Injury by Disease–Each Employee

Spaces are available to enter the following information for the underlying insurance:

• Insurance Company
• Policy Number
• Policy Period

Watercraft Liability Limits

This section has spaces to enter limits for the following information for the underlying insurance:

• Combined Single Limit or
• Split Limits
• Bodily Injury–Each Person
• Bodily Injury–Each Accident
• Property Damage–Each Accident

Spaces are available to enter the following information for the underlying insurance:

• Insurance Company
• Policy Number
• Policy Period

Liquor Liability Limits

This section has spaces to enter limits for the following underlying insurance:

• Each Common Cause
• Aggregate

Either occurrence basis or claims-made basis must be selected.

Spaces are available to enter the following information for the underlying insurance:

• Retroactive Date (if applicable)
• Insurance Company
• Policy Number
• Policy Period

Miscellaneous Liability Limits

A space is available to enter the type of miscellaneous liability.

This section has spaces to enter limits for the following underlying insurance:

• Each Occurrence
• Aggregate
• Either occurrence basis or claims-made basis must be selected.

Spaces are available to enter the following information for the underlying insurance:

• Retroactive Date (if applicable)
• Insurance Company
• Policy Number
• Policy Period

FORMS AND ENDORSEMENTS

Any forms and endorsements that the policy includes when it is issued are listed in this section. Subsequent endorsements issued after the policy is issued obviously cannot be listed but are included by inference.

COUNTERSIGNATURE

This section has spaces for the signature of the representative authorized to countersign the policy and the date signed. The facsimile signature of the insuring company's officers can also be inserted in the space provided below this section, on the first page of the coverage form, or elsewhere, at the insurance company's option.