(April 2019)
This endorsement is used only with the Insurance Services Office (ISO) CU 00 01–Commercial Liability Umbrella Coverage Form. It is similar to CG 21 67–Fungi or Bacteria Exclusion used with the ISO Commercial General Liability (CGL) Coverage Form. It should be attached to CU 00 01 when CG 21 67 is attached to the underlying CGL Coverage Form.
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.
The exclusion under Coverage A excludes bodily injury and property damage if fungi or bacteria on or in the building or structure contributed to the loss. The exclusion applies even if the only fungi or bacteria present are part of contents within the buildings or structure.
This exclusion applies if the exposure is actual, alleged, suspected, or threatened. The fungi or bacteria 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 fungi or bacteria.
Fungi or bacteria that contribute to a loss in any way are excluded. This means there is no coverage even if another cause of loss occurs at the same time as the fungi or bacteria event and another event, material, or product is present.
There is also no coverage for the expense to abate, clean, monitor, assess, or respond to the presence of fungi or bacteria. Such expenses the insured or others incur are excluded.
There is one exception. This exclusion does not apply to any fungi or bacteria in goods or products intended for consumption. As an example, this means there is coverage for losses caused by a person consuming an insured’s mushrooms.
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Example: Megabank Consolidated is constructing a new headquarters building in Metroville and is insured under a commercial liability umbrella coverage form that includes CU 21 27–Fungi or Bacteria Exclusion. Megabank's CEO conducts a tour of the construction site for members of the Metroville City Council and their families. The weather immediately preceding the tour was cool and rainy and small amounts of mold had formed on some of the building's walls. Scenario 1: Several children touched the mold formations just before they ate lunch elsewhere on the job site. Over a dozen people on the tour become seriously ill and their families subsequently sued Megabank for the costs and expenses of hospitalization, treatments and personal damages. There is no coverage. Scenario 2: A luncheon follows the event and several people became very ill. It is determined that the wild mushrooms added to the salad were poisonous. There is coverage because even through mushrooms are fungi they are intended for consumption. |
The exclusion under Coverage B excludes personal and advertising injury if fungi or bacteria on or in the building or structure contributed to the loss. The exclusion applies even if the only fungi or bacteria present are part of contents within the buildings or structure. This exclusion applies if the exposure is actual, alleged, suspected, or threatened. The fungi or bacteria 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 fungi or bacteria.
Fungi or bacteria that contribute to a loss in any way are excluded. This means there is no coverage even if another cause of loss occurs at the same time as the fungi or bacteria event and another event, material, or product is present.
The exclusion under Coverage B does not have the exception for consumption that applies to Coverage A.
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Example: George is a commercial property manager. He learns that a potential client is looking at Up and Coming Building. He tells that client that he heard that the building has a history of Legionnaire’s Disease. Up and Coming sues George when it loses the client because the client was afraid of the potential for bacteria. Personal and Advertising Injury Liability coverage does not apply in this case because the injury is related to fungi or bacteria. |
"Fungi" is added as a defined term. It includes any and all types of fungus. It also means any substance that fungus either produces or releases.