Liquor Liability Coverage Forms Available Endorsements And Their Uses

LIQUOR LIABILITY COVERAGE FORMS AVAILABLE ENDORSEMENTS AND THEIR USES

(November 2019)

 

INTRODUCTION

This listing identifies endorsements that are available to modify the Insurance Services Office (ISO) Liquor Liability Coverage Forms. It is arranged by form number and includes the title and a brief explanation of how each endorsement is used. It does not include any state specific endorsements, changes, or amendments. New endorsements introduced, or endorsements changed in the 04 13 edition and since are in bold print. Of particular interest may be the nine new endorsements added with a 12 19 edition date.

Note: This article lists but does not otherwise address any of the various ISO Terrorism Endorsements.

Related Articles:

Terrorism and Insurance

Terrorism–Insurance Services Office (ISO) Forms

A list of endorsements that can be used with these coverage forms may be useful.

Related Article: Liquor Liability Coverage Forms Endorsements Checklist

FORM NUMBERING

The ten-digit numbering sequence of ISO forms and endorsements has a very specific meaning.

CATEGORIES

Endorsements are grouped in categories according to their purpose as follows:

 

CG 02

Termination and Suspension Endorsements

CG 03

Deductible Endorsements

CG 04

Additional Coverage Endorsements

CG 20

Additional Insured Endorsements

CG 21

Exclusion Endorsements

CG 24

Coverage Modification Endorsements

CG 25

Amendment of Limits Endorsements


CG 28

Miscellaneous Coverage Forms and Endorsements

CG 34 & 99

Miscellaneous Endorsements and Exclusions

TERMINATION AND SUSPENSION ENDORSEMENTS (CG 02)

CG 02 24–Earlier Notice of Cancellation Provided By Us

This endorsement changes the 30-day cancellation provision in the Common Policy Conditions for other than non-payment of premium to the number of days entered in the space provided for any statutorily permitted reason. It is used to increase the number of days’ notice to be more than the number that state law requires.

DEDUCTIBLE ENDORSEMENTS (CG 03)

CG 03 05—Deductible Liability Insurance

This endorsement adds deductibles per claim or per common cause. It can apply at specific locations on the endorsement schedule or to all locations.

ADDITIONAL COVERAGE ENDORSEMENTS (CG 04)

CG 04 24–Coverage for Injury to Leased Workers

This buyback endorsement provides bodily injury and property damage coverage for leased workers by amending the definition of employee to exclude leased workers. However, this changed definition only applies to the bodily injury and property damage coverage within the employer’s liability exclusion.

ADDITIONAL INSURED ENDORSEMENTS (CG 20)

CG 20 01–Primary and Non-Contributory–Other Insurance Condition (12 19 addition)

When an additional insured carries insurance that might apply to a loss, this insurance company will not ask for contribution when that additional insured is a named insured on the other insurance. This applies only when a contract between the additional insured and the named insured requires such non-contribution.

EXCLUSION ENDORSEMENTS (CG 21)

CG 21 70–Cap on Losses from Certified Acts of Terrorism

Related Article: Terrorism and Insurance

CG 21 71–Exclusion of Other Acts of Terrorism Committed Outside the United States; Cap on Losses from Certified Acts of Terrorism

Related Article: Terrorism and Insurance

CG 21 73–Exclusion of Certified Acts of Terrorism

Related Article: Terrorism and Insurance

CG 21 75–Exclusion of Certified Acts of Terrorism and Other Acts of Terrorism Committed Outside the United States

Related Article: Terrorism and Insurance

CG 21 76–Exclusion of Punitive Damages Related to a Certified Act of Terrorism

Related Article: Terrorism and Insurance

CG 21 80–Certified Acts of Terrorism Aggregate Limit; Cap on Losses from Certified Acts of Terrorism

Related Article: Terrorism and Insurance

CG 21 84–Exclusion of Certified Acts of Nuclear, Biological, Chemical, or Radiological Acts of Terrorism; Cap on Losses from Certified Acts of Terrorism

Related Article: Terrorism and Insurance

CG 21 87–Conditional Exclusion of Terrorism (Relating to Disposition of Federal Terrorism Risk Insurance Act)

Related Article: Terrorism and Insurance

CG 21 88–Conditional Exclusion of Terrorism Involving Nuclear, Biological, or Chemical Terrorism (Relating to Disposition of Federal Terrorism Risk Insurance Act)

Related Article: Terrorism and Insurance

CG 21 90–Exclusion of Terrorism

Related Article: Terrorism and Insurance

CG 21 91–Exclusion of Terrorism Involving Nuclear, Biological, or Chemical Terrorism

Related Article: Terrorism and Insurance

COVERAGE MODIFICATION ENDORSEMENTS (CG 24)

CG 24 01–Non-Binding Arbitration

When the insured and insurance company do not agree on a coverage issue, this may be a valuable option. If this endorsement is attached, the parties can follow the form’s arbitration steps to avoid going to the courts to resolve the dispute. Because the outcome is non-binding, both parties retain the right to ask the courts to decide the dispute even after arbitration has taken place.

CG 24 02–Binding Arbitration

When the insured and insurance company do not agree on a coverage issue, this may be a valuable option. If this endorsement is attached, the parties can follow the arbitration steps outlined in the endorsement to resolve the dispute. Because the outcome is binding, both parties relinquish the option of turning to the courts If a dispute has not been satisfactorily resolved.

CG 24 04–Waiver of Transfer of Rights of Recovery Against Others to Us (12 19 addition)

This endorsement amends Section IV–Conditions 8. Transfer of Rights of Recovery Against Others to Us. The insurance company waives its rights of recovery against the party on the endorsement schedule but only if the insured had waived such rights prior to the loss. There is NO requirement that the waiver be in writing.

Note: This endorsement can be used, or the insured can waive in writing, rights to the same individuals without the need of this endorsement. The insured can waive any and all its rights to recovery from anyone as long as such waivers are in writing and are provided PRIOR to a loss.

CG 24 06–Liquor Liability–Bring Your Own Alcohol Establishments (04 13 addition)

This endorsement extends the liquor liability insuring agreement to include establishments that do not sell alcohol but that permit patrons to bring their own alcohol to the premises and consume it there.

AMENDMENT OF LIMITS ENDORSEMENTS (CG 25)

CG 25 14–Designated Location(s) Aggregate Limit (04 13 addition)

This endorsement is used to establish a separate aggregate limit for each of the named insured’s locations on the endorsement schedule.

MISCELLANEOUS COVERAGE FORMS AND ENDORSEMENTS (CG 28)

CG 28 03–Supplemental Extended Reporting Period Endorsement

This endorsement provides an extended reporting period without a time limitation. One very important feature is the new supplemental aggregate limit provided for claims first received during the supplemental extended reporting period. This endorsement cannot be cancelled when the premium is paid. The named insured must request the endorsement in writing not later than 60 days after the end of the policy period.

CG 28 06–Limitation of Coverage to Insured Premises

This endorsement restricts coverage to only the insured premises on the endorsement schedule. It also defines Insured Premises.

MISCELLANEOUS ENDORSEMENTS AND EXCLUSIONS (CG 34 & 99)

CG 34 01–Additional Insured–Managers or Lessors of Premises–Liquor Liability (12 19 addition)

This endorsement adds the person or entity on the endorsement schedule as an additional insured. This is only with respect to losses due to liquor-related injury on a part of the premises listed on the endorsement schedule that the named insured leases. Coverage is limited to what the law permits. When the endorsement is required by contract, coverage and limits are further limited to not being broader than what that contract requires.

CG 34 02–Additional Insured–Grantor of Franchise – Liquor Liability (12 19 addition)

This endorsement adds the party on the endorsement schedule as an additional insured. However, this is only with respect to its liquor related injury liability imposed due to its having granted a franchise to the named insured. Coverage is limited to what the law permits. When the endorsement is required by contract, coverage and limits are further limited to not being broader than what that contract requires.

CG 34 03–Additional Insured–State or Governmental Agency or Subdivision or Political Subdivision–Permits or Authorizations – Liquor Liability (12 19 addition)

This endorsement amends Who Is an Insured to include the state, political subdivision, governmental agency, or subdivision on the endorsement schedule as an additional insured but only with respect to a liquor-related injury related to the issued permit or authorization. Coverage is limited to what the law permits. When the endorsement is required by contract, coverage and limits are further limited to not being broader than what that contract requires.

Note: This endorsement is not to be used to grant additional insured status for services provided for the benefit of governmental entity.

CG 34 04–Additional Insured–Sponsor(s) – Liquor Liability (12 19 addition)

This endorsement adds the person or entity on the endorsement schedule as an additional insured but only for its liability as a sponsor of the scheduled event or function. This is only with respect to losses due to liquor-related injury. Coverage is limited to what the law permits. When the endorsement is required by contract, coverage and limits are further limited to not being broader than what that contract requires.

CG 34 36–Automatic Insured Status for Newly Acquired or Formed Limited Liability Companies (12 19 addition)

Item 3. under Who is Insured is amended to automatically cover newly acquired or formed limited liability company on the same basis as other organizations described in that item.

Note: Due to the popularity of limited liability company form of business, this is a much-needed addition.

CG 34 45–Exclusion - Cross Suits Liability (12 19 addition)

This endorsement applies only when there are multiple named insureds. Any suit brought by one named insured against another named insured is not covered.

CG 99 09–Premium Audit Noncompliance Charge (12 19 addition)

This replaces the audit condition in the coverage form with wording that penalizes the named insured if it does not provide needed information when required. Because audit happens after the policy has ended and may result in an increase in premium, cooperation may be less forthcoming. This endorsement encourages cooperation by placing financial penalties against those who drag their feet in cooperating. The charge is a percentage of the estimated premium and is imposed after the scheduled number of written attempts to obtain the information has been made without satisfaction.