COMPARE: CU 00 01–COMMERCIAL LIABILITY UMBRELLA COVERAGE FORM: 04 13 EDITION TO THE 12 07 EDITION
(April 2019)
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INTRODUCTION
The 04 13 edition is the third revision of the Insurance Services Office
(ISO) CU 00 01–Commercial Liability Umbrella Coverage Form. This summary
comparison does not include minor and/or editorial changes that do not affect coverage,
or any endorsement additions or changes made since the 04 13 edition.
SECTION I–COVERAGES
COVERAGE A–BODILY INJURY AND PROPERTY DAMAGE LIABILITY
1. Insuring Agreement
Item b. is added. It explains that when the underlying coverage provides a sublimit for a particular exposure, the umbrella does not respond to that exposure unless the sublimit is on the declarations.
Note: This limitation was not explicitly stated in previous
editions of this coverage form. The ISO Commercial General Liability Coverage
Form does not have any sublimits. However, there are many exposures that can be
added subject to a much lower sublimit. The goal of this new wording allows the
umbrella carrier to provide only the coverage it knows about for which it
charged a premium that contemplates the additional exposure. It also prevents
the umbrella carrier from automatically assuming such coverage when a coverage
with a sublimit is added mid-term.
Other parts of the insuring agreement are unchanged.
2. Exclusions
c. Liquor Liability
- Multiple changes have been made in this exclusion. The exclusion applies when the insured is accused of negligently hiring, monitoring, or training others.
- The exclusion applies when transportation is provided to an intoxicated person or when it should have been provided but was not.
- The business is not considered subject
to this exclusion even in cases where it permits others to consume alcohol
on its premises. This applies even when the customer must pay a charge in
order to drink on the premises.
- The following form part of this
exclusion is revised. It states that the coverage the umbrella provides is
not broader than the coverage the underlying coverage provides.
g. Employer’s
Liability
The following form part of this exclusion is revised. It states that the
coverage the umbrella provides is not broader than the coverage the underlying
coverage provides.
i. Pollution
The following form part of this exclusion is revised. It states that the
coverage the umbrella provides is not broader than the coverage the underlying
coverage provides.
j. Aircraft or Watercraft
The following form part of this exclusion is revised. It states that the
coverage the umbrella provides is not broader than the coverage the underlying
coverage provides.
s. Professional
Services
Two changes made to the list of services reduce coverage.
- The services in s.(2) previously applied only when an architect, engineer, or surveyor that provided services for the construction manager named insured performed the services listed. This restriction is eliminated but the services remain. This means that any professional service that prepares or approves maps, shop drawings, opinions, reports, surveys, field orders, changer orders, drawings, or specifications is now excluded. This is much broader and could have negative implications for many contractors.
- The services in s.(11) were excluded only if the pharmacy practice was by other than a retail druggist or part of a drugstore operation. The exception for retail druggists and drugstore operations is removed. This is a significant change that could produce a gap in coverage because most underlying Businessowners Policies and Commercial General Liability coverage forms provide this coverage.
There is also no coverage for negligence on the part of the insured in hiring, supervising, monitoring, employing, and training as it relates to any professional service occurrence that results in injury or damage.
t. Electronic Data
This section has two changes.
- A
statement is added that the exclusion does not apply to bodily injury.
- The following form part of this
exclusion is revised. It states that the coverage the umbrella provides is
not broader than the coverage the underlying coverage provides.
u. Recording and
Distribution of Material in Violation of Statutes
This exclusion’s title is
changed to reflect adding violations of the Fair Credit Reporting Act to the
list of items excluded. This replaces CU 00 04–Recording and Distribution of Material or
Information in Violation of Law Exclusion that was previously a mandatory
endorsement.
COVERAGE B–PERSONAL AND ADVERTISING INJURY LIABILITY
Item b. is added. It explains that when the underlying coverage provides a sublimit for a particular exposure, the umbrella does not respond to that exposure unless the sublimit is on the declarations.
Note: This limitation was not explicitly stated in previous
editions of this coverage form. The ISO Commercial General Liability Coverage
Form does not have any sublimits. However, there are many exposures that can be
added subject to a much lower sublimit. The goal of this new wording allows the
umbrella carrier to provide only the coverage it knows about for which it
charged a premium that contemplates the additional exposure. It also prevents
the umbrella carrier from automatically assuming such coverage when a coverage
with a sublimit is added mid-term.
Other parts of the insuring agreement are unchanged.
a. (2) Material
Published with Knowledge of Falsity
Wording is added that the exclusion applies regardless of the way the material is published.
a. (3) Material
Published Prior to Policy Period
Wording is added that the exclusion applies regardless of the way the
material is published.
a. (15) Professional
Services
Two changes made to the list of services reduce coverage.
- The services in (15) (b) previously applied only when an architect, engineer, or surveyor that provided services for the construction manager named insured performed the services listed. This restriction is eliminated but the services remain. This means that any professional service that prepares or approves maps, shop drawings, opinions, reports, surveys, field orders, changer orders, drawings, or specifications is now excluded. This is much broader and could have negative implications for many contractors.
- The services in (15) (k) were excluded only if the pharmacy practice was by other than a retail druggist or part of a drugstore operation. The exception for retail druggists and drugstore operations is removed. This is a significant change that could produce a gap in coverage because most underlying Businessowners Policies and Commercial General Liability coverage forms provide this coverage.
There is also no coverage for negligence on the part of the insured in hiring, supervising, monitoring, employing, and training as it relates to any professional service occurrence that results in injury or damage.
a. (17) Recording and
Distribution of Material in Violation of Statutes
This exclusion’s title is
changed to reflect adding violations of the Fair Credit Reporting Act to the
list of items excluded. This replaces CU 00 04–Recording and Distribution of Material or
Information in Violation of Law Exclusion that was previously a mandatory
endorsement.
SECTION II–WHO IS AN INSURED
Item 2.b. (6) is further restricted by eliminating insured status available to an employee for the consequential lawsuits from family members because of a fellow employee’s injuries.
Item 3 is amended to limit the amount of coverage available to a contractually required additional insured. The maximum is the amount the contract requires less amounts underlying coverage paid or the limit on the declarations, whichever is less.
SECTION IV–CONDITIONS
11. Loss Payable
The language is improved. It moves from a general statement to applying
to a specific claim. A formatting change makes this easier to understand.
13. Maintenance
Of/Changes to Underlying Insurance
The wording in the previous edition stated that the underlying be no longer in effect. This wording is more specific by stating that the underlying must be cancelled, not renewed, replaced, or terminated in any way.