(April 2019)
This endorsement is used with only the Insurance Services Office (ISO) Commercial Liability Umbrella Coverage Form. It is similar to CG 21 96–Silica or Silica-related Dust Exclusion used with the ISO Commercial General Liability Coverage Forms. CU 21 50 should be attached to an umbrella policy when CG 21 96 is attached to the underlying commercial general liability coverage form.
SILICOSIS CONCERNS
Silica and Silica-related Dust is an area of potential loss or damage that has rapidly developed into a major insurance, health, and legal concern, primarily because of its similarity to issues and concerns related to asbestos. Regardless of whether it is referred to as silica, sand, or glass, it is a common mineral found throughout the world used in many industrial processes such as the following:
Like asbestosis, silicosis injury usually develops only after years of exposure to sources of silica particles. The potential for an individual to develop silicosis is high because of the numerous applications that involve the substance that contribute to the illness developing.
Insurance companies requested changes in the wording of coverage forms and policies to eliminate or at least substantially reduce their obligation to defend suits or pay silica-related claims due in large part to the numerous sources and potential for silica exposure.
This endorsement adds two exclusions. One is added to the Coverage A–Bodily Injury and Property Damage Liability. The other is added to Coverage B–Personal and Advertising Injury Liability. It also adds two definitions.
EXCLUSIONS
Silica or Silica-Related Dust
The exclusion under Coverage A excludes bodily injury and property damage as it relates to silica or silica-related dust.
This exclusion applies if the exposure is actual, alleged, suspected, or threatened. The silica can be inhaled, ingested, or make contact with the claimant. It applies even if the issue is limited to exposure, existence, or simply the presence of silica or silica-related dust.
Silica or silica-related dust that contributes to a loss in any way is excluded. This means there is no coverage even if another cause of loss occurs at the same time as the silica or silica-related dust event and another event, material, or product is present.
There is also no coverage for the expense to abate, clean up, monitor, assess, or respond to the presence of silica or silica-related dust. Such expenses the insured or others incur are excluded.
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Example: Acme Stone-Crushing, Inc. files a claim with Mineral Matter Mutual, its umbrella carrier. Acme has operated at the same site for nearly 25 years and the residents of a neighboring subdivision suddenly sue it. The suit alleges that the reason many of them have developed serious respiratory problems and sustained damage to their homes and yards is due to the constant clouds of dust that Acme generates. Scenario A: Acme is insured under an umbrella coverage form that does not contain CU 21 50. Mineral Matter Mutual may deny coverage because of the umbrella’s pollution exclusion but will probably defend Acme Stone-Crushing. However, Acme may be found liable for the neighboring residents' bodily injury and property damage. At the very least, Mineral Matter Mutual may be required to defend Acme until any liability is established. The umbrella coverage form may also be required to pay any judgments or settlements. Scenario B: Acme is insured under an umbrella coverage form that has CU 21 50. Mineral Matter Mutual will use the exclusion as the basis to deny any obligation to defend Acme or indemnify the neighboring residents. |
Silica or Silica-Related Dust
The exclusion under Coverage B excludes personal and advertising injury as it relates to silica or silica-related dust.
This exclusion applies if the exposure is actual, alleged, suspected, or threatened. The silica can be inhaled, ingested, or make contact with the claimant. It applies even if the issue is limited to exposure, existence, or simply the presence of silica or silica-related dust.
Silica or silica-related dust that contributes to a loss in any way is excluded. This means there is no coverage even if another cause of loss occurs at the same time as the silica or silica-related dust event and another event, material, or product is present.
There is also no coverage for the expense to abate, clean up, monitor, assess, or respond to the presence of silica or silica-related dust. Such expenses the insured or others incur are excluded.
Note: This language is designed to relieve the umbrella carrier from any responsibility for a loss that involves silicosis or the presence of silica.
DEFINITIONS
Two definitions are added to Section V–Definitions
Silica
This is silicon dioxide that occurs in any form, including when silica is just a particle, dust, or compound.
Silica-related dust
This is a mixture or combination of silica and other dust or particles.