2013 CHANGES IN GENERAL LIABILITY MULTISTATE FORMS AND ENDORSEMENTS

ISO is revising various General Liability coverage forms and endorsements in 2013 to reflect the changing needs of insureds and insurers. Revisions include broadening of coverage, narrowing of coverage and editorial changes that have no impact on coverage. Conditional renewal notices with a copy of the ISO General Liability MultiState Forms Revision Advisory Notice will be released to policyholders in advance of their renewal. The Advisory notice will also be included with renewal quotes effective 5/1/2013.

CHARTIS will adopt these changes in the following states: AL, AK, AZ, DC, GA, ID, IN, IA, KS, KY, ME, MD, MI, MN, MS, MO, MT, NE,NV, NH, NJ, NM, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, UT, VT, VA, WA,WV, WI, WY. Policies issued on or after 5/12/2013 will include the new GL Coverage Form CG 00 01 04 13.

ZURICH has NOT adopted these changes at this time.

There are 67 multistate ISO forms that will be revised or introduced in 2013. Please refer to the ISO General Liability MultiState Forms Advisory notice for details.

Contact your underwriter if you have any questions regarding these changes.

Some notable changes are mentioned below

Exclusion Application

Within the policy and across many endorsements, ISO has added language that clarifies that specific exclusions also apply to claims alleging negligence or other wrongdoing in hiring, employment, training, and supervision or monitoring of others by any insured. The incorporation of this language within various professional services exclusions is significant.

Additional Insureds

ISO is modifying existing additional insured endorsements to reflect a growing number of state “anti-indemnification’laws which, in various forms, prohibit provisions in construction contracts that require a party to indemnify another against liability for such other party’s own negligence. Many of the additional insured endorsements have been changed to add this language, as well as to clarify the scope of coverage and the application of limits. New or renewal policies effective 5/1/2013 and after will include the new version of the additional insured form.

Liquor Liability

The Liquor Liability exclusion is being revised to clarify that allowing persons to bring alcoholic beverages for consumption on the insured premises (BYO) is not, by itself, considered being in the business of selling, serving or furnishing alcoholic beverages (key conditions under which coverage is excluded).

Optional AI Endorsement

ISO is introducing an optional endorsement – CG 20 01 Primary and Noncontributory – Other Insurance Condition. This endorsement indicates that coverage is provided on a primary and noncontributory basis provided that the additional insured is a named insured on other insurance available to them;and a written contract or agreement has been entered into by the insured stating that the insured’s policy will be primary and would not seek contribution from any other insurance available to the additional insured.

This form will replace the current Chartis form 74434 – no additional premium charge.

For new or renewing policies after 5/1/2013 that require the primary and non-contributory endorsement, update your certificate templates to reference this new endorsement number.

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