Commercial General Liability (CGL)
A guide to commercial general liability (cgl): what it covers, what it excludes, what actually goes wrong, what reduces it, and what an underwriter asks. Every statement cites a published source.
Overview
What this line is, and who or what it is designed to protect.
Commercial general liability insurance pays sums a business becomes legally obligated to pay as damages for third-party bodily injury and property damage. Whether the insurer also carries a duty to defend, and whether defense costs sit inside or outside the limits, are properties of the particular form on the policy rather than of the line as such, so this page states them form by form. This page is general information about how specific published forms are written. It is not legal advice, it is not a coverage determination, and it does not decide whether any particular claim, business, contract requirement, or person is covered. Coverage questions are decided by the insurer on the policy actually issued and the facts of the claim, and disputes about them are legal questions for a lawyer. In the ISO occurrence form CG 00 01 04 13, the Coverage A insuring agreement says the insurer will pay those sums the insured becomes legally obligated to pay as damages because of bodily injury or property damage to which the insurance applies, and that the insurer has the right and duty to defend the insured against any suit seeking those damages [1]. In that form, Coverage A applies to bodily injury and property damage only if the injury or damage is caused by an occurrence that takes place in the coverage territory and occurs during the policy period, and occurrence is defined as an accident, including continuous or repeated exposure to substantially the same general harmful conditions [1]. That is the occurrence trigger: CG 00 01 04 13 keys Coverage A to when the injury or damage happened, not to when the claim was made [1]. The same form adds Coverage B for personal and advertising injury and Coverage C for medical payments, which are paid regardless of fault and cannot exceed the applicable limit of insurance [1]. The California Department of Insurance describes a CGL policy as having three primary coverage sections, premises liability, products liability and completed operations, and describes the coverage as comprehensive in nature, covering all hazards within the scope of the insuring agreement that are not otherwise excluded [7]. Everything below describes CG 00 01 04 13 and the named CG 20 and CG 21 endorsements as published. ISO issues the CGL coverage form in dated editions; the edition read for this page carries the header CG 00 01 04 13 and the ISO copyright date 2012 [1]. Read the form and endorsements actually attached to a policy, because a different edition, a state variant, or a carrier's own form can read differently.
The business and other named insureds against damages they become legally obligated to pay for bodily injury or property damage to which the insurance applies, under the Coverage A insuring agreement of CG 00 01 04 13 [1]
The business against the cost of defending suits, because under CG 00 01 04 13 the insurer has the right and duty to defend any suit seeking covered damages, and Supplementary Payments under that form include all expenses the insurer incurs and are stated not to reduce the limits of insurance [1]
The business against premises liability, products liability and completed operations claims, which CDI identifies as the three primary coverage sections that make up a CGL policy [7]
The business against reputational and advertising-related claims, through Coverage B Personal And Advertising Injury Liability in CG 00 01 04 13 [1]
People injured on the insured's premises, through Coverage C Medical Payments in CG 00 01 04 13, which are paid regardless of fault and cannot exceed the applicable limit of insurance [1]
What it covers
Each note carries a policy-form caveat, because what a form covers is read in that form.
Bodily injury and property damage caused by an occurrence in the coverage territory during the policy period
In CG 00 01 04 13, Coverage A applies to bodily injury and property damage only if it is caused by an occurrence that takes place in the coverage territory and occurs during the policy period, subject to that form's prior-knowledge provisions [1]. This describes CG 00 01 04 13 only; read the form attached to the policy.
Defense of suits seeking covered damages
CG 00 01 04 13 states that the insurer has the right and duty to defend the insured against any suit seeking damages the insurance applies to, and that it has no duty to defend a suit seeking damages for bodily injury or property damage to which the insurance does not apply [1]. This describes CG 00 01 04 13 only; read the form attached to the policy.
Products and completed operations claims
CG 00 01 04 13 carries a separate Products-Completed Operations Aggregate Limit, described as the most the insurer will pay under Coverage A for damages because of bodily injury and property damage included in the products-completed operations hazard [1]. CDI lists products liability and completed operations among the three primary CGL coverage sections [7]. This describes CG 00 01 04 13 only; read the form attached to the policy.
Personal and advertising injury offenses under Coverage B
In CG 00 01 04 13, Coverage B Personal And Advertising Injury Liability is a separate insuring agreement with its own limit of insurance and its own set of exclusions, including a pollution exclusion [1]. This describes CG 00 01 04 13 only; read the form attached to the policy.
Medical payments for people injured on the insured's premises
In CG 00 01 04 13, Coverage C Medical Payments are made regardless of fault, subject to that form's reporting and examination conditions and to the Medical Expense Limit, which the form states is the most it will pay under Coverage C for all medical expenses because of bodily injury sustained by any one person [1]. This describes CG 00 01 04 13 only; read the form attached to the policy.
Property damage to premises rented to the insured
In CG 00 01 04 13, the Damage To Premises Rented To You Limit is described as the most the insurer will pay under Coverage A for damages because of property damage to any one premises while rented to the insured, or in the case of damage by fire, while rented to or temporarily occupied by the insured with the owner's permission [1]. This describes CG 00 01 04 13 only; read the form attached to the policy.
Indemnity liability the named insured assumed in an insured contract
In CG 00 01 04 13, exclusion b. Contractual Liability removes bodily injury and property damage for which the insured is obligated to pay damages by reason of the assumption of liability in a contract or agreement, and then states that the exclusion does not apply to liability the insured would have in the absence of the contract, or to liability assumed in a contract or agreement that is an insured contract as that form defines the term, provided the bodily injury or property damage occurs subsequent to the execution of the contract or agreement [1]. That timing proviso is part of the exception and is easy to drop. The same subparagraph deems reasonable attorneys' fees and necessary litigation expenses incurred by or for a party other than an insured to be damages, but only where liability for that party's defense was also assumed in the same insured contract and the fees are for defense against a proceeding in which damages this insurance applies to are alleged [1]. That exception concerns the named insured's own assumed indemnity obligation. It does not make anyone an additional insured under the policy. This describes CG 00 01 04 13 only; read the form attached to the policy.
Another party as an additional insured, but only where an additional insured endorsement is attached
Additional insured status is added by endorsement, not by the base coverage form. CG 20 10 04 13 states that Section II Who Is An Insured is amended to include as an additional insured the person or organization shown in its Schedule, but only with respect to liability for bodily injury, property damage or personal and advertising injury caused in whole or in part by the named insured's acts or omissions, or the acts or omissions of those acting on the named insured's behalf, in the performance of the named insured's ongoing operations for that additional insured at the scheduled location [3]. CG 20 37 04 13 amends Who Is An Insured for liability caused in whole or in part by the named insured's work at the scheduled location and included in the products-completed operations hazard [4]. Both endorsements state that the insurance afforded to the additional insured applies only to the extent permitted by law, and that where a contract requires the coverage, it will not be broader than what the contract requires [3][4]. These notes describe CG 20 10 04 13 and CG 20 37 04 13 only; read the endorsements actually attached to the policy.
What it excludes
Exclusions and limitations as the published forms state them.
Expected or intended injury
In CG 00 01 04 13, Coverage A exclusion a. Expected Or Intended Injury removes bodily injury or property damage expected or intended from the standpoint of the insured [1]. That exclusion carries a stated exception in the same paragraph: it does not apply to bodily injury resulting from the use of reasonable force to protect persons or property [1]. CDI also lists intentional injury among the major CGL exclusions [7]. This describes CG 00 01 04 13 only; read the form attached to the policy.
Workers compensation obligations and employers liability
In CG 00 01 04 13, Coverage A exclusions d. Workers' Compensation And Similar Laws and e. Employer's Liability remove those exposures, which is why a business carries a separate workers compensation and employers liability policy [1]. The employer's liability exclusion is not absolute in that form: exclusion e. reaches bodily injury to an employee arising out of and in the course of employment or of duties related to the conduct of the insured's business, and to that employee's spouse, child, parent, brother or sister as a consequence, and applies whether the insured may be liable as an employer or in any other capacity, but the form then states that the exclusion does not apply to liability assumed by the insured under an insured contract [1]. CDI also lists workers compensation and employers liability among the major CGL exclusions [7]. This describes CG 00 01 04 13 only; read the form attached to the policy.
Pollution
In CG 00 01 04 13, Coverage A exclusion f. Pollution removes bodily injury or property damage arising out of the actual, alleged or threatened discharge, dispersal, seepage, migration, release or escape of pollutants at or from premises the insured owns, occupies, rents or borrows, and at or from premises where the insured or its contractors are performing operations if the pollutants are brought on in connection with those operations, subject to stated subparagraph exceptions [1]. One stated exception is bodily injury sustained within a building and caused by smoke, fumes, vapor or soot produced by or originating from equipment used to heat, cool or dehumidify the building [1]. Exclusion f.(2) separately removes loss, cost or expense arising out of a request, demand, order or statutory or regulatory requirement to test for, monitor, clean up, remove, contain, treat, detoxify or neutralize pollutants, and claims or suits by or on behalf of a governmental authority for such damages [1]. Exclusion f.(2) carries its own stated exception, which is easy to miss: the form states that the paragraph does not apply to liability for damages because of property damage that the insured would have in the absence of such request, demand, order or statutory or regulatory requirement, or of such claim or suit by or on behalf of a governmental authority [1]. Coverage B in that form carries its own pollution exclusion [1]. CDI lists pollution among the major CGL exclusions [7]. This describes CG 00 01 04 13 only; a different pollution exclusion edition or a buyback endorsement changes the result, so read the form and endorsements attached to the policy.
Professional services, where a professional services exclusion endorsement is attached
The Coverage A exclusion list in CG 00 01 04 13 runs a. through q. and does not include a professional services exclusion [1]. Professional exposure is instead removed by endorsement. CG 21 16 04 13 adds an exclusion to Coverage A and Coverage B stating that the insurance does not apply to bodily injury, property damage or personal and advertising injury due to the rendering of or failure to render any professional service, applies only with respect to the professional services shown in its Schedule, and states that it applies even if the claims allege negligence or other wrongdoing in the supervision, hiring, employment, training or monitoring of others [5]. Because the exclusion is a scheduled endorsement, whether a given policy excludes professional work depends on which endorsement is attached and how its Schedule is completed. These notes describe CG 00 01 04 13 and CG 21 16 04 13 only; other professional services exclusion endorsements with different wording exist, so read what is attached.
Autos, aircraft, watercraft and mobile equipment
In CG 00 01 04 13, Coverage A exclusion g. Aircraft, Auto Or Watercraft removes bodily injury or property damage arising out of the ownership, maintenance, use or entrustment to others of any aircraft, auto or watercraft owned or operated by or rented or loaned to any insured, subject to stated exceptions, and exclusion h. Mobile Equipment addresses mobile equipment [1]. CDI lists aircraft, automobile, watercraft and mobile equipment among the major CGL exclusions [7]. This describes CG 00 01 04 13 only; read the form attached to the policy.
Damage to the insured's own product, own work and impaired property
In CG 00 01 04 13, Coverage A exclusion k. Damage To Your Product removes property damage to the insured's product arising out of it or any part of it, and exclusion l. Damage To Your Work removes property damage to the insured's work arising out of it or any part of it and included in the products-completed operations hazard [1]. Exclusion l. carries a stated exception that changes the result for most general contractors and must not be dropped: the form states that the exclusion does not apply if the damaged work, or the work out of which the damage arises, was performed on the named insured's behalf by a subcontractor [1]. Exclusion m. removes property damage to impaired property or to property that has not been physically injured arising out of a defect, deficiency, inadequacy or dangerous condition in the insured's product or work, or out of a delay or failure to perform a contract in accordance with its terms, and it too carries a stated exception: it does not apply to the loss of use of other property arising out of sudden and accidental physical injury to the insured's product or work after it has been put to its intended use [1]. CDI lists damage to your work and impaired property among the major CGL exclusions [7]. This describes CG 00 01 04 13 only; read the form attached to the policy.
Damage to property in the insured's care, custody or control
In CG 00 01 04 13, Coverage A exclusion j. Damage To Property removes several categories of property damage, including property the insured owns, rents or occupies and personal property in the insured's care, custody or control, subject to stated exceptions [1]. CDI lists care, custody and control among the major CGL exclusions [7]. This describes CG 00 01 04 13 only; read the form attached to the policy.
Recall of products, work or impaired property
In CG 00 01 04 13, Coverage A exclusion n. Recall Of Products, Work Or Impaired Property removes damages claimed for any loss, cost or expense incurred by the insured or others for the loss of use, withdrawal, recall, inspection, repair, replacement, adjustment, removal or disposal of the insured's product, work or impaired property [1]. The exclusion is conditional rather than flat, and the condition is part of it: the form applies it only if such product, work or property is withdrawn or recalled from the market or from use by any person or organization because of a known or suspected defect, deficiency, inadequacy or dangerous condition in it [1]. This describes CG 00 01 04 13 only; read the form attached to the policy.
Liquor liability
In CG 00 01 04 13, Coverage A exclusion c. Liquor Liability removes bodily injury or property damage for which any insured may be held liable by reason of causing or contributing to the intoxication of any person, furnishing alcoholic beverages to a person under the legal drinking age or under the influence of alcohol, or any statute, ordinance or regulation relating to the sale, gift, distribution or use of alcoholic beverages [1]. That exclusion has a limiting clause that must not be dropped, because without it the exclusion reads far wider than the form: CG 00 01 04 13 states that the exclusion applies only if the named insured is in the business of manufacturing, distributing, selling, serving or furnishing alcoholic beverages, and adds that permitting a person to bring alcoholic beverages on the insured's premises for consumption there, whether or not a fee is charged or a license is required, is not by itself considered the business of selling, serving or furnishing alcoholic beverages [1]. The exclusion also states that it applies even if the claims allege negligence or other wrongdoing in the supervision, hiring, employment, training or monitoring of others, or in providing or failing to provide transportation with respect to a person who may be under the influence of alcohol, where the occurrence involved one of the three listed grounds [1]. CDI lists liquor liability among the major CGL exclusions [7]. This describes CG 00 01 04 13 only; read the form attached to the policy.
Electronic data, and recording and distribution of material in violation of law
In CG 00 01 04 13, Coverage A exclusion p. Electronic Data removes damages arising out of the loss of, loss of use of, damage to, corruption of, inability to access or inability to manipulate electronic data [1]. That exclusion carries a stated exception in the same paragraph: the form states that it does not apply to liability for damages because of bodily injury [1]. Exclusion q. Recording And Distribution Of Material Or Information In Violation Of Law removes bodily injury or property damage arising directly or indirectly out of any action or omission that violates or is alleged to violate the Telephone Consumer Protection Act, the CAN-SPAM Act of 2003, the Fair Credit Reporting Act including the Fair and Accurate Credit Transactions Act amendment, or any other similar statute, ordinance or regulation [1]. This describes CG 00 01 04 13 only; read the form attached to the policy.
War
In CG 00 01 04 13, Coverage A exclusion i. War removes bodily injury or property damage arising directly or indirectly out of war, including undeclared or civil war, warlike action by a military force, and insurrection, rebellion, revolution, usurped power or action taken by governmental authority in hindering or defending against any of these [1]. CDI lists war among the major CGL exclusions [7]. This describes CG 00 01 04 13 only; read the form attached to the policy.
What goes wrong
The loss drivers, as distinct from what the policy protects. This is the question an underwriter is asking.
Bodily injury to a third party arising out of premises or operations
Coverage A responds to sums the insured becomes legally obligated to pay as damages because of bodily injury or property damage, and only where the injury is caused by an occurrence in the coverage territory during the policy period [1]. The insuring agreement is therefore the first limit on this exposure, before any exclusion is reached.
Property damage to something belonging to someone else
The same insuring agreement pairs property damage with bodily injury, and the form defines occurrence as an accident, including continuous or repeated exposure to substantially the same general harmful conditions [1]. Damage that is neither sudden nor accidental sits differently against that definition. Read the form actually issued.
Completed work that fails after the job is finished
The form carries a separate Products-Completed Operations Aggregate Limit, which is the most the insurer will pay for damages included in the products-completed operations hazard [1]. A completed-operations exposure therefore has its own aggregate rather than sharing the general one.
Injury to the employer's own employee
Coverage A exclusion e. Employer's Liability reaches bodily injury to an employee of the insured arising out of and in the course of employment [1]. This exposure is addressed by workers compensation and employers liability rather than by the general liability form.
Professional or design services performed alongside ordinary operations
The base form's Coverage A exclusion list does not include a professional services exclusion [1], but endorsement CG 21 16 adds one for the professional services shown in its Schedule, and it applies even where the claim alleges negligence in supervision, hiring, employment, training or monitoring [5]. Whether such an endorsement is attached is readable on the policy.
Liability assumed in a written contract
Exclusion b. Contractual Liability removes damages the insured is obligated to pay by assumption of liability in a contract, subject to the insured contract exception [1]. Nothing in that exclusion or its exception amends Who Is An Insured or confers additional insured status [1], so a contract promise and an endorsement are different things.
Pollution, including fumes from equipment used to heat a building
Exclusion f. Pollution removes bodily injury or property damage arising out of the discharge, dispersal, seepage, migration, release or escape of pollutants, and carries a stated exception for bodily injury sustained within a building caused by smoke, fumes, vapor or soot produced by or originating from equipment used to heat that building [1]. The exception is narrow and specific.
What reduces it
Things you can do, each tied to a source. None of these is a promise about price; whether an insurer credits any of them is an underwriting decision.
Read the additional insured endorsement rather than the certificate
The grant lives in a named endorsement with its own Schedule, period and cap: CG 20 10 amends Who Is An Insured for the party shown in its Schedule [3], CG 20 37 addresses completed operations [4], and primary and noncontributory arrives separately through CG 20 01 [2]. Ask for the endorsements by form number and edition date.
Keep certificates and written agreements from every subcontractor
Subcontractor cost, written subcontractor agreements, and certificates of insurance are among the information commonly requested at underwriting on this line [7]. Collecting them during the period rather than reconstructing them afterwards is what makes the record usable.
Check whether a professional services exclusion is attached before relying on the base form
The base form has no professional services exclusion in its Coverage A list [1], but CG 21 16 adds one limited to the services shown in its Schedule [5]. If any design or advisory work is performed, the Schedule is the thing to read.
Track the aggregate separately from the occurrence limit
The form states that the General Aggregate is the most the insurer will pay for the sum of damages other than those in the products-completed operations hazard, that the Products-Completed Operations Aggregate is separate, and that the limits apply separately to each consecutive annual period [1]. Two open claims can exhaust an aggregate that an occurrence limit suggests is intact.
Establish where the risk sits in the market before renewal, not at it
The Department of Insurance notes that after three documented declinations from licensed commercial carriers a business can proceed to the surplus line market through a specially licensed broker [7]. Documenting declinations as they happen is what makes that route available on time. Nothing here says which market any risk belongs in.
Underwriting
Information commonly requested. Common practice rather than a filed requirement.
A description of what the business actually does, including any design or professional work, so that operations can be classified
Annual gross sales or receipts, and payroll figures
Subcontractor cost, written subcontractor agreements, and certificates of insurance collected from subcontractors
Loss history, typically several years of currently valued loss runs
Products sold or manufactured, distribution channels, and any recall history
Premises information: locations, square footage, occupancy, tenant or owner status, and features such as pools or playgrounds
Contract requirements the business has agreed to, including additional insured status, primary and non-contributory wording, and waiver of subrogation. Additional insured status is supplied by an additional insured endorsement such as CG 20 10 04 13 or CG 20 37 04 13, and primary and non-contributory wording by CG 20 01 04 13, each with its own conditions [3][4][2]. No waiver of subrogation endorsement was reviewed for this page, so nothing here describes what any particular waiver endorsement says; read the one attached to the policy
Any pollution, mold, asbestos, lead, or hazardous materials exposure
Whether the business manufactures, distributes, sells, serves or furnishes alcoholic beverages
Limits and aggregate structure requested
Whether an umbrella or excess layer is being placed, and what underlying limits that umbrella form requires
This list describes information commonly requested in practice. It is common practice rather than a legal or filed requirement, and what any particular insurer asks for, and whether it offers terms at all, is a carrier underwriting decision. CDI notes that after three documented declinations from licensed commercial carriers a business can proceed to the surplus line market through a specially licensed broker, but nothing on this page determines whether a specific risk belongs in the admitted market or the surplus line market [7]
Limits and endorsements
How the limit is structured, and the endorsements that change it.
Section III Limits Of Insurance of CG 00 01 04 13 sets six limits: General Aggregate, Products-Completed Operations Aggregate, Personal And Advertising Injury, Each Occurrence, Damage To Premises Rented To You, and Medical Expense [1].
In that form, the Each Occurrence Limit is the most the insurer will pay for the sum of damages under Coverage A and medical expenses under Coverage C because of all bodily injury and property damage arising out of any one occurrence [1].
In that form, the General Aggregate Limit is the most the insurer will pay for the sum of medical expenses under Coverage C, damages under Coverage A other than damages included in the products-completed operations hazard, and damages under Coverage B [1]. It is a single annual pot, so exhausting it exhausts the coverage it applies to for that period even where the Each Occurrence Limit has not been touched [1].
Products-completed operations damages run against the separate Products-Completed Operations Aggregate Limit rather than against the General Aggregate [1].
In CG 00 01 04 13 the Personal And Advertising Injury Limit is subject to the General Aggregate Limit, and the Damage To Premises Rented To You and Medical Expense limits are subject to the Each Occurrence Limit [1].
CG 00 01 04 13 states that the Limits of Insurance of the Coverage Part apply separately to each consecutive annual period and to any remaining period of less than 12 months, starting with the beginning of the policy period shown in the Declarations, so a multi-year term under that form does not stack the aggregates into one pot [1].
In CG 00 01 04 13, defense costs sit outside the limits: Supplementary Payments under Coverages A and B include all expenses the insurer incurs, and the form states that these payments will not reduce the limits of insurance [1]. That is a property of this form and edition, not of liability insurance generally; forms and endorsements exist on which defense costs erode the limit, so check the form on the policy before assuming either structure. Defense under CG 00 01 04 13 is also not unlimited: the form states that the insurer's right and duty to defend ends when it has used up the applicable limit of insurance in the payment of judgments or settlements under Coverages A or B or medical expenses under Coverage C [1].
Section III of CG 00 01 04 13 sets limits only and contains no liability deductible provision [1]. If a policy shows a liability deductible or a self-insured retention, that provision does not come from this base form; find the endorsement or carrier form that creates it and read its own wording for how it applies and whether it erodes the limit.
Additional insured - owners, lessees or contractors (CG 20 10 04 13 and CG 20 37 04 13)
CG 20 10 04 13 amends Section II Who Is An Insured to include the scheduled person or organization as an additional insured for liability caused in whole or in part by the named insured's acts or omissions, or those of people acting on its behalf, in the performance of the named insured's ongoing operations for that additional insured at the scheduled location [3]. CG 20 37 04 13 does the same for liability caused in whole or in part by the named insured's work at the scheduled location and included in the products-completed operations hazard [4]. So the ongoing-operations and completed-operations grants come from different endorsements, and which one is attached decides what the additional insured has. Both state that the coverage applies only to the extent permitted by law, that it will not be broader than the contract requires where a contract requires it, and that the most the insurer will pay on behalf of the additional insured is the amount required by the contract or the amount available under the Declarations limits, whichever is less, and that the endorsement does not increase those limits [3][4].
Primary And Noncontributory - Other Insurance Condition (CG 20 01 04 13)
Primary and non-contributory status is a separate endorsement from the additional insured endorsement. CG 20 01 04 13 adds to the Other Insurance Condition, superseding any provision to the contrary, that this insurance is primary to and will not seek contribution from any other insurance available to an additional insured under the policy, provided that the additional insured is a Named Insured under that other insurance and the named insured has agreed in writing in a contract or agreement that this insurance would be primary and would not seek contribution [2]. Both of those conditions have to be met for the endorsement to operate as written. This describes CG 20 01 04 13 only; read what is attached.
Exclusion - Designated Professional Services (CG 21 16 04 13)
Adds a professional services exclusion to Coverage A and Coverage B for the services shown in the endorsement's Schedule, and states that it applies even where the claim alleges negligence or other wrongdoing in the supervision, hiring, employment, training or monitoring of others [5]. Because the Schedule is completed for the individual policy, the scope of the exclusion is whatever the Schedule says. This describes CG 21 16 04 13 only; other professional services exclusion endorsements with different wording and scope exist, so check which one is attached.
Pollution exclusion amendments and limited pollution buybacks
The pollution exclusion in CG 00 01 04 13 is broad and has only the narrow stated exceptions set out in exclusion f. of that form [1]. Any grant-back of pollution coverage therefore has to come from an endorsement, and what it grants depends entirely on that endorsement's own wording. No pollution buyback endorsement was reviewed for this page, so read the one attached to the policy rather than relying on any general description.
Endorsements that narrow coverage to designated premises, operations, or classifications
The Coverage A insuring agreement in CG 00 01 04 13 is not limited by premises or by classification on its face [1], so any such limitation on a policy comes from an endorsement. No designated-premises or classification-limitation endorsement was reviewed for this page. If the policy carries one, its wording, not the insuring agreement, describes the narrowed scope, so read it.
Endorsements that change the aggregate structure
In CG 00 01 04 13 the General Aggregate Limit is a single annual pot covering most Coverage A damages and all Coverage B damages [1], so a policy that provides a separate aggregate for each project or each location does so through an endorsement rather than through the base form. No per-project or per-location aggregate endorsement was reviewed for this page. Whether such an endorsement is available on a given policy is a carrier underwriting decision.
By state
Where a state changes the answer. Only the states read for this page appear.
CA
The California Department of Insurance publishes a Commercial Insurance Guide that describes the three primary CGL coverage sections, describes the coverage as comprehensive in nature covering all hazards within the scope of the insuring agreement that are not otherwise excluded, and lists major exclusions including intentional injury, insured contracts, liquor liability, workers compensation and employers liability, pollution, aircraft, automobile, watercraft, mobile equipment, war, care custody and control, damage to your work, impaired property, sistership liability, and failure to perform [7]. CDI also states that a surplus line company can only be accessed through a specially licensed broker, that it has limited jurisdiction over the operation of surplus line insurers, and that the California Insurance Guarantee Association does not apply to surplus line insurers [7]. Nothing here determines whether a specific California risk is written by an admitted carrier, placed in the surplus line market, or accepted at all; those are carrier and broker decisions on the individual risk.
US
The provisions described on this page are those of CG 00 01 04 13, CG 20 01 04 13, CG 20 10 04 13, CG 20 37 04 13 and CG 21 16 04 13 as published, each carrying the ISO copyright date 2012 [1][2][3][4][5]. They are the behavior of specific editions of specific forms, not universal policy language. Other editions, state variants, and carrier forms exist and can read differently, so read the forms on the policy.
Source ledger
Every numbered marker in this guide resolves to a record below. Each record lists the exact claims it supports, and each claim has its own address.
Source ledger
7 sources. Every citation number above resolves to a record below. Nothing here sits behind an account.
- [1]Commercial General Liability Coverage Form CG 00 01 04 13 (ISO)(opens the original record on Insurance Services Office, Inc. (form text); published as a downloadable coverage form specimen by Berxi (Berkshire Hathaway Specialty Insurance))Insurance Services Office, Inc. (form text); published as a downloadable coverage form specimen by Berxi (Berkshire Hathaway Specialty Insurance)Standards bodyPrimaryJurisdiction USLast checked August 31, 2026Updates: ISO revises the CGL coverage form periodically; edition dates and state-specific variants differ, and carriers may use their own non-ISO forms.ID
iso-cg-00-01-04-13What this source supports (37)
- In CG 00 01 04 13, the Coverage A insuring agreement states that the insurer will pay those sums that the insured becomes legally obligated to pay as damages because of bodily injury or property damage to which the insurance applies, and that the insurer will have the right and duty to defend the insured against any suit seeking those damages.
- The form states that the insurer will have no duty to defend the insured against any suit seeking damages for bodily injury or property damage to which the insurance does not apply.
- The form states that the insurer's right and duty to defend ends when it has used up the applicable limit of insurance in the payment of judgments or settlements under Coverages A or B or medical expenses under Coverage C.
- Coverage A applies to bodily injury and property damage only if the injury or damage is caused by an occurrence that takes place in the coverage territory and occurs during the policy period, subject to the form's prior-knowledge provisions.
- The form defines occurrence as an accident, including continuous or repeated exposure to substantially the same general harmful conditions.
- Supplementary Payments under Coverages A and B include all expenses the insurer incurs, and the form states that these payments will not reduce the limits of insurance.
- Section III Limits Of Insurance sets a General Aggregate Limit, a Products-Completed Operations Aggregate Limit, a Personal And Advertising Injury Limit, an Each Occurrence Limit, a Damage To Premises Rented To You Limit, and a Medical Expense Limit.
- The General Aggregate Limit is the most the insurer will pay for the sum of medical expenses under Coverage C, damages under Coverage A other than damages included in the products-completed operations hazard, and damages under Coverage B.
- The Products-Completed Operations Aggregate Limit is the most the insurer will pay under Coverage A for damages because of bodily injury and property damage included in the products-completed operations hazard.
- The Each Occurrence Limit is the most the insurer will pay for the sum of damages under Coverage A and medical expenses under Coverage C because of all bodily injury and property damage arising out of any one occurrence.
- The Damage To Premises Rented To You Limit, subject to the Each Occurrence Limit, is the most the insurer will pay under Coverage A for damages because of property damage to any one premises while rented to the insured, or in the case of damage by fire, while rented to or temporarily occupied by the insured with permission of the owner.
- The Medical Expense Limit, subject to the Each Occurrence Limit, is the most the insurer will pay under Coverage C for all medical expenses because of bodily injury sustained by any one person.
- The form states that the Limits of Insurance of the Coverage Part apply separately to each consecutive annual period and to any remaining period of less than 12 months, starting with the beginning of the policy period shown in the Declarations.
- The Coverage A exclusions in CG 00 01 04 13 are lettered a. through q.: Expected Or Intended Injury; Contractual Liability; Liquor Liability; Workers' Compensation And Similar Laws; Employer's Liability; Pollution; Aircraft, Auto Or Watercraft; Mobile Equipment; War; Damage To Property; Damage To Your Product; Damage To Your Work; Damage To Impaired Property Or Property Not Physically Injured; Recall Of Products, Work Or Impaired Property; Personal And Advertising Injury; Electronic Data; and Recording And Distribution Of Material Or Information In Violation Of Law.
- The Coverage A list of exclusions in this base form does not include a professional services exclusion.
- Exclusion b. Contractual Liability removes bodily injury or property damage for which the insured is obligated to pay damages by reason of the assumption of liability in a contract or agreement, and states that the exclusion does not apply to liability for damages that the insured would have in the absence of the contract or agreement, or to liability assumed in a contract or agreement that is an insured contract, provided the bodily injury or property damage occurs subsequent to the execution of the contract or agreement.
- The form defines insured contract to include a contract for a lease of premises with a stated fire-damage carve-out, a sidetrack agreement, an easement or license agreement with a stated railroad exception, an obligation required by ordinance to indemnify a municipality with a stated exception, an elevator maintenance agreement, and that part of any other contract or agreement pertaining to the insured's business under which the insured assumes the tort liability of another party to pay for bodily injury or property damage to a third person or organization.
- Nothing in the Contractual Liability exclusion or its insured contract exception amends Section II Who Is An Insured or confers additional insured status.
- Coverage A exclusion a. Expected Or Intended Injury states, in the same paragraph, that the exclusion does not apply to bodily injury resulting from the use of reasonable force to protect persons or property.
- The insured contract exception in exclusion b. also provides that, solely for the purposes of liability assumed in an insured contract, reasonable attorneys' fees and necessary litigation expenses incurred by or for a party other than an insured are deemed to be damages because of bodily injury or property damage, provided liability for that party's defense was also assumed in the same insured contract and the fees and expenses are for defense of that party against a civil or alternative dispute resolution proceeding in which damages to which the insurance applies are alleged.
- Coverage A exclusion c. Liquor Liability removes bodily injury or property damage for which any insured may be held liable by reason of causing or contributing to the intoxication of any person, the furnishing of alcoholic beverages to a person under the legal drinking age or under the influence of alcohol, or any statute, ordinance or regulation relating to the sale, gift, distribution or use of alcoholic beverages.
- The Liquor Liability exclusion states that it applies even if the claims allege negligence or other wrongdoing in the supervision, hiring, employment, training or monitoring of others by that insured, or in providing or failing to provide transportation with respect to any person that may be under the influence of alcohol, if the occurrence involved one of the three listed grounds.
- The Liquor Liability exclusion closes with a limiting clause stating that the exclusion applies only if the named insured is in the business of manufacturing, distributing, selling, serving or furnishing alcoholic beverages, and that permitting a person to bring alcoholic beverages on the named insured's premises for consumption on those premises, whether or not a fee is charged or a license is required for that activity, is not by itself considered the business of selling, serving or furnishing alcoholic beverages.
- Coverage A exclusion e. Employer's Liability reaches bodily injury to an employee of the insured arising out of and in the course of employment by the insured or of performing duties related to the conduct of the insured's business, and to that employee's spouse, child, parent, brother or sister as a consequence, and applies whether the insured may be liable as an employer or in any other capacity and to any obligation to share damages with or repay someone else. The form then states that the exclusion does not apply to liability assumed by the insured under an insured contract.
- Coverage A exclusion f. Pollution excludes bodily injury or property damage arising out of the actual, alleged or threatened discharge, dispersal, seepage, migration, release or escape of pollutants at or from premises the insured owns, occupies, rents or borrows, and at or from premises where the insured or its contractors are performing operations if the pollutants are brought on in connection with those operations, subject to stated subparagraph exceptions.
- One stated exception to the pollution exclusion is bodily injury sustained within a building and caused by smoke, fumes, vapor or soot produced by or originating from equipment used to heat, cool or dehumidify the building.
- Exclusion f.(2) also excludes loss, cost or expense arising out of a request, demand, order or statutory or regulatory requirement that any insured or others test for, monitor, clean up, remove, contain, treat, detoxify or neutralize pollutants, or a claim or suit by or on behalf of a governmental authority for such damages.
- Exclusion f.(2) closes with a stated exception providing that the paragraph does not apply to liability for damages because of property damage that the insured would have in the absence of such request, demand, order or statutory or regulatory requirement, or of such claim or suit by or on behalf of a governmental authority.
- Coverage A exclusion k. Damage To Your Product removes property damage to the insured's product arising out of it or any part of it, and carries no stated exception in this form.
- Coverage A exclusion l. Damage To Your Work removes property damage to the insured's work arising out of it or any part of it and included in the products-completed operations hazard, and states that the exclusion does not apply if the damaged work, or the work out of which the damage arises, was performed on the named insured's behalf by a subcontractor.
- Coverage A exclusion m. Damage To Impaired Property Or Property Not Physically Injured removes property damage to impaired property or to property that has not been physically injured arising out of a defect, deficiency, inadequacy or dangerous condition in the insured's product or work, or out of a delay or failure by the insured or anyone acting on its behalf to perform a contract or agreement in accordance with its terms, and states that the exclusion does not apply to the loss of use of other property arising out of sudden and accidental physical injury to the insured's product or work after it has been put to its intended use.
- Coverage A exclusion n. Recall Of Products, Work Or Impaired Property removes damages claimed for any loss, cost or expense incurred by the insured or others for the loss of use, withdrawal, recall, inspection, repair, replacement, adjustment, removal or disposal of the insured's product, work or impaired property, and applies only if such product, work or property is withdrawn or recalled from the market or from use by any person or organization because of a known or suspected defect, deficiency, inadequacy or dangerous condition in it.
- Coverage A exclusion p. Electronic Data removes damages arising out of the loss of, loss of use of, damage to, corruption of, inability to access or inability to manipulate electronic data, and states in the same paragraph that the exclusion does not apply to liability for damages because of bodily injury.
- Coverage A exclusion i. War excludes bodily injury or property damage arising directly or indirectly out of war including undeclared or civil war, warlike action by a military force, and insurrection, rebellion, revolution, usurped power or action taken by governmental authority in hindering or defending against any of these.
- Coverage A exclusion q. excludes bodily injury or property damage arising directly or indirectly out of any action or omission that violates or is alleged to violate the Telephone Consumer Protection Act, the CAN-SPAM Act of 2003, the Fair Credit Reporting Act including the Fair and Accurate Credit Transactions Act amendment, or any other similar statute, ordinance or regulation.
- Section III Limits Of Insurance in this base form sets limits only and contains no liability deductible provision.
- Coverage B is Personal And Advertising Injury Liability, has its own limit of insurance and its own exclusions including a pollution exclusion, and Coverage C is Medical Payments, whose payments are made regardless of fault and cannot exceed the applicable limit of insurance.
Published: 2013-04
Active - [2]ISO form CG 20 01, edition 04 13, Primary And Noncontributory - Other Insurance Condition(opens the original record on Insurance Services Office, Inc. (form text), posted by the Independent Insurance Agents of Texas)Insurance Services Office, Inc. (form text), posted by the Independent Insurance Agents of TexasStandards bodyPrimaryJurisdiction n/aLast checked August 31, 2026Updates: ISO revises commercial general liability endorsement editions periodically; a later edition may supersede the 04 13 edition.ID
iso-cg-20-01-04-13What this source supports (6)
- The form carries the designation CG 20 01 04 13, is titled 'Primary And Noncontributory - Other Insurance Condition', modifies insurance provided under the Commercial General Liability Coverage Part and the Products/Completed Operations Liability Coverage Part, and carries the footer 'Insurance Services Office, Inc., 2012'.
- The form states that the following is added to the Other Insurance Condition 'and supersedes any provision to the contrary'.
- The added language reads: 'This insurance is primary to and will not seek contribution from any other insurance available to an additional insured under your policy provided that: (1) The additional insured is a Named Insured under such other insurance; and (2) You have agreed in writing in a contract or agreement that this insurance would be primary and would not seek contribution from any other insurance available to the additional insured.'
- CG 20 01 04 13 is a separate endorsement from the additional insured endorsements CG 20 10 and CG 20 37.
- CG 20 01 04 13 is titled Primary And Noncontributory - Other Insurance Condition and modifies the Commercial General Liability Coverage Part and the Products/Completed Operations Liability Coverage Part.
- The endorsement adds to the Other Insurance Condition, and supersedes any provision to the contrary, that this insurance is primary to and will not seek contribution from any other insurance available to an additional insured under the policy, provided that the additional insured is a Named Insured under such other insurance and the named insured has agreed in writing in a contract or agreement that this insurance would be primary and would not seek contribution from any other insurance available to the additional insured.
Downloaded 2026-08-31; the URL returns a one-page PDF, converted with pdftotext -layout and read in full. Clean, unaltered reproduction of the ISO form; the posting organization is a state agents trade association, not ISO. This replaces an earlier draft citation to a City of Hayward sample copy of the same form, which was a municipal sample rather than a clean form reproduction and which had been used to support a generalization about California public agencies that a single city sample cannot carry. Published: 2013-04
Active - [3]ISO form CG 20 10, edition 04 13, Additional Insured - Owners, Lessees Or Contractors - Scheduled Person Or Organization(opens the original record on Insurance Services Office, Inc. (form text), posted by the Independent Insurance Agents of Texas)Insurance Services Office, Inc. (form text), posted by the Independent Insurance Agents of TexasStandards bodyPrimaryJurisdiction n/aLast checked August 31, 2026Updates: ISO revises commercial general liability endorsement editions periodically; the 12 19 edition is later than this one.ID
iso-cg-20-10-04-13What this source supports (7)
- The form carries the designation CG 20 10 04 13 and the footer 'Insurance Services Office, Inc., 2012'.
- The 04 13 edition already contains both Paragraph A provisos found in the 12 19 edition: that the insurance afforded to such additional insured 'only applies to the extent permitted by law', and that where coverage is required by a contract or agreement the insurance 'will not be broader than that which you are required by the contract or agreement to provide for such additional insured.'
- The 04 13 edition contains the same two Paragraph B post-completion exclusions and the same Paragraph C lesser-of cap structure as the 12 19 edition, with a different limits reference: 04 13 reads 'Available under the applicable Limits of Insurance shown in the Declarations' and 'This endorsement shall not increase the applicable Limits of Insurance shown in the Declarations.'
- CG 20 10 04 13 states that Section II Who Is An Insured is amended to include as an additional insured the person or organization shown in its Schedule, but only with respect to liability for bodily injury, property damage or personal and advertising injury caused, in whole or in part, by the named insured's acts or omissions or the acts or omissions of those acting on the named insured's behalf, in the performance of the named insured's ongoing operations for the additional insured at the location designated in the Schedule.
- The endorsement states that the insurance afforded to such additional insured only applies to the extent permitted by law, and that if coverage provided to the additional insured is required by a contract or agreement, the insurance afforded will not be broader than that which the named insured is required by the contract or agreement to provide.
- The endorsement adds exclusions applicable to the additional insured for bodily injury or property damage occurring after all work on the project at the location of the covered operations has been completed, or after that portion of the named insured's work out of which the injury or damage arises has been put to its intended use by any person or organization other than another contractor or subcontractor engaged in performing operations for a principal as a part of the same project.
- The endorsement adds to Section III Limits Of Insurance that where coverage provided to the additional insured is required by a contract or agreement, the most the insurer will pay on behalf of the additional insured is the amount of insurance required by the contract or agreement, or the amount available under the applicable Limits of Insurance shown in the Declarations, whichever is less, and that the endorsement shall not increase the applicable Limits of Insurance shown in the Declarations.
Downloaded 2026-08-31; the URL returns a PDF, converted with pdftotext -layout and read in full (two pages). Clean, unaltered reproduction. The posting organization is a state agents trade association, not ISO. Cited only to support the edition-to-edition comparison in the variability section; the edition designation gives month and year only, so publishedDate is left unknown. Published: 2013-04
Active - [4]ISO form CG 20 37, edition 04 13, Additional Insured - Owners, Lessees Or Contractors - Completed Operations(opens the original record on Insurance Services Office, Inc. (form text), posted by the Independent Insurance Agents of Texas)Insurance Services Office, Inc. (form text), posted by the Independent Insurance Agents of TexasStandards bodyPrimaryJurisdiction n/aLast checked August 31, 2026Updates: ISO revises commercial general liability endorsement editions periodically; the 12 19 edition is later than this one.ID
iso-cg-20-37-04-13What this source supports (6)
- The form carries the designation CG 20 37 04 13 and the footer 'Insurance Services Office, Inc., 2012'.
- The 04 13 edition already contains both Paragraph A provisos found in the 12 19 edition: that the insurance afforded to such additional insured 'only applies to the extent permitted by law', and that where coverage is required by a contract or agreement the insurance 'will not be broader than that which you are required by the contract or agreement to provide for such additional insured.'
- The 04 13 edition contains the same Paragraph B lesser-of cap structure as the 12 19 edition, with a different limits reference: 04 13 reads 'Available under the applicable Limits of Insurance shown in the Declarations' and 'This endorsement shall not increase the applicable Limits of Insurance shown in the Declarations.'
- CG 20 37 04 13 states that Section II Who Is An Insured is amended to include as an additional insured the person or organization shown in its Schedule, but only with respect to liability for bodily injury or property damage caused, in whole or in part, by the named insured's work at the location designated and described in the Schedule of the endorsement and included in the products-completed operations hazard.
- The endorsement states that the insurance afforded to such additional insured only applies to the extent permitted by law, and that if coverage provided to the additional insured is required by a contract or agreement, the insurance afforded will not be broader than that which the named insured is required by the contract or agreement to provide.
- The endorsement adds to Section III Limits Of Insurance that where coverage provided to the additional insured is required by a contract or agreement, the most the insurer will pay on behalf of the additional insured is the amount of insurance required by the contract or agreement, or the amount available under the applicable Limits of Insurance shown in the Declarations, whichever is less, and that the endorsement shall not increase the applicable Limits of Insurance shown in the Declarations.
Downloaded 2026-08-31; the URL returns a one-page PDF, converted with pdftotext -layout and read in full. Clean, unaltered reproduction. The posting organization is a state agents trade association, not ISO. Cited only to support the edition-to-edition comparison in the variability section. Published: 2013-04
Active - [5]Exclusion - Designated Professional Services, endorsement CG 21 16 04 13 (ISO)(opens the original record on Insurance Services Office, Inc. (form text); posted by the Independent Insurance Agents of Texas InfoCentral)Insurance Services Office, Inc. (form text); posted by the Independent Insurance Agents of Texas InfoCentralStandards bodyPrimaryJurisdiction USLast checked August 31, 2026Updates: ISO revises endorsements periodically; other professional services exclusion endorsements with different scope also exist.ID
iso-cg-21-16-04-13What this source supports (3)
- Endorsement CG 21 16 04 13 adds an exclusion to Coverage A and Coverage B of the Commercial General Liability Coverage Part stating that the insurance does not apply to bodily injury, property damage, or personal and advertising injury due to the rendering of or failure to render any professional service.
- The exclusion applies only with respect to the professional services shown in the endorsement's Schedule, which is completed for the individual policy.
- The endorsement states that the exclusion applies even if the claims against any insured allege negligence or other wrongdoing in the supervision, hiring, employment, training or monitoring of others by that insured, if the occurrence or offense which caused the bodily injury or property damage, or the offense which caused the personal and advertising injury, involved the rendering of or failure to render any professional service.
Published: 2013-04
Active - [6]Building And Personal Property Coverage Form CP 00 10 10 12 (ISO)(opens the original record on Insurance Services Office, Inc. (form text); posted in the Property Insurance Coverage Law Blog forms library (Merlin Law Group))Insurance Services Office, Inc. (form text); posted in the Property Insurance Coverage Law Blog forms library (Merlin Law Group)Standards bodyPrimaryJurisdiction USLast checked August 31, 2026Updates: ISO revises the commercial property program periodically; later editions and state-specific variants exist, and carriers may use manuscript forms.ID
iso-cp-00-10-10-12What this source supports (26)
- CP 00 10 10 12 is the Building And Personal Property Coverage Form, and it insures Building, Your Business Personal Property and Personal Property Of Others as separately scheduled coverages in the Declarations.
- The form states that Covered Property means the types of property described in section A.1 and limited in section A.2 Property Not Covered, if a Limit Of Insurance is shown in the Declarations for that type of property.
- The form describes Your Business Personal Property as property located in or on the described building or structure or in the open, or in a vehicle, within 100 feet of the building or structure or within 100 feet of the described premises, whichever distance is greater, and describes Personal Property Of Others as property in the insured's care, custody or control and located in or on the described building or structure or in the open, or in a vehicle, within 100 feet of the described premises.
- The form carries Additional Coverages at A.4 and Coverage Extensions at A.5 in addition to the scheduled limits of insurance.
- Section A.5 states that the Coverage Extensions apply to property located in or on the building described in the Declarations or in the open, or in a vehicle, within 100 feet of the described premises, and that the insured may extend the insurance provided by the Coverage Part as the Extensions describe if a coinsurance percentage of 80 percent or more, or a Value Reporting period symbol, is shown in the Declarations.
- Section D Deductible provides that in any one occurrence of loss or damage the insurer will first reduce the amount of loss if required by the Coinsurance Condition or the Agreed Value Optional Coverage, will not pay if the adjusted amount of loss is less than or equal to the deductible, and will otherwise subtract the deductible from the adjusted amount of loss and pay the resulting amount or the Limit of Insurance, whichever is less.
- Section D Deductible also states that when the occurrence involves loss to more than one item of Covered Property and separate Limits of Insurance apply, the losses will not be combined in determining application of the deductible, but the deductible will be applied only once per occurrence.
- The Valuation loss condition in section E.7 states that the insurer will determine the value of Covered Property at actual cash value as of the time of loss or damage, except as provided in subparagraphs b., c., d. and e. of that condition.
- Subparagraph E.7.b pays the cost of building repairs or replacement where the Limit of Insurance for Building satisfies the Coinsurance additional condition and the cost to repair or replace the damaged building property is $2,500 or less. That subparagraph states that the cost of building repairs or replacement does not include the increased cost attributable to enforcement of or compliance with any ordinance or law regulating the construction, use or repair of any property, and that awnings or floor coverings, appliances for refrigerating, ventilating, cooking, dishwashing or laundering, and outdoor equipment or furniture will be valued at actual cash value even when attached to the building.
- Subparagraph E.7.c values Stock the insured has sold but not delivered at the selling price less discounts and expenses the insured otherwise would have had; E.7.d values glass at the cost of replacement with safety-glazing material if required by law; and E.7.e values tenants' improvements and betterments in three branches: at actual cash value if the insured makes repairs promptly; at a proportion of original cost, computed from the days from the loss to the expiration of the lease over the days from installation to that expiration, if it does not; and at nothing if others pay for repairs or replacement.
- Coinsurance appears in section F.1 as an Additional Condition that applies only if a coinsurance percentage is shown in the Declarations.
- The Coinsurance condition states that if one Limit of Insurance applies to two or more separate items, the condition applies to the total of all property to which the limit applies.
- The Coinsurance condition states that the insurer will not pay the full amount of any loss if the value of Covered Property at the time of loss times the coinsurance percentage shown in the Declarations is greater than the Limit of Insurance for the property.
- The Coinsurance condition sets out a calculation that multiplies the value of Covered Property at the time of loss by the coinsurance percentage, divides the Limit of Insurance by that figure, multiplies the total amount of loss before the application of any deductible by the resulting figure, and then subtracts the deductible, and states that the insurer will pay the amount so determined or the Limit of Insurance, whichever is less, and that for the remainder the insured will either have to rely on other insurance or absorb the loss itself.
- Section F Additional Conditions also includes a Mortgageholders condition at F.2, which pays covered loss of or damage to buildings or structures to each mortgageholder shown in the Declarations in their order of precedence, as interests may appear.
- Section G Optional Coverages apply only if shown as applicable in the Declarations and are Agreed Value, Inflation Guard, Replacement Cost, and Extension Of Replacement Cost To Personal Property Of Others.
- The Agreed Value Optional Coverage states that the Additional Condition, Coinsurance, does not apply to Covered Property to which that Optional Coverage applies, that the insurer will pay no more for loss of or damage to that property than the proportion that the Limit of Insurance under the Coverage Part for the property bears to the Agreed Value shown for it in the Declarations, and that if the Agreed Value expiration date shown in the Declarations is not extended, the Coinsurance condition is reinstated and the Optional Coverage expires.
- The Agreed Value Optional Coverage states that its terms apply only to loss or damage occurring on or after its effective date and before the earlier of the Agreed Value expiration date shown in the Declarations or the policy expiration date.
- The Inflation Guard Optional Coverage automatically increases the Limit of Insurance for property to which it applies by the annual percentage shown in the Declarations, and computes the amount of increase as the Limit of Insurance that applied on the most recent of the policy inception date, policy anniversary date or other policy change amending the limit, times the annual percentage shown in the Declarations, times the number of days since that date divided by 365.
- The Replacement Cost Optional Coverage states that Replacement Cost, without deduction for depreciation, replaces Actual Cash Value in the Valuation loss condition of the Coverage Form.
- The Replacement Cost Optional Coverage states that it does not apply to four things: personal property of others; contents of a residence; works of art, antiques or rare articles including etchings, pictures, statuary, marbles, bronzes, porcelains and bric-a-brac; and Stock, unless the Including Stock option is shown in the Declarations.
- The Replacement Cost Optional Coverage states that the insurer will not pay on a replacement cost basis until the lost or damaged property is actually repaired or replaced, and unless the repair or replacement is made as soon as reasonably possible after the loss or damage.
- The Replacement Cost Optional Coverage allows the insured to make a claim on an actual cash value basis and still claim the additional amount that Optional Coverage provides if it notifies the insurer of its intent to do so within 180 days after the loss or damage.
- The Replacement Cost Optional Coverage adds two branches for tenants' improvements and betterments: if the repair-or-replacement conditions are not met, their value is determined as a proportion of original cost as set out in the Valuation loss condition, and the insurer will not pay for loss or damage to them if others pay for repairs or replacement. The same Optional Coverage states that tenants' improvements and betterments are not considered to be the personal property of others under its terms.
- The Extension Of Replacement Cost To Personal Property Of Others Optional Coverage at G.4 may be shown as applicable only if the Replacement Cost Optional Coverage is itself shown as applicable, deletes Paragraph 3.b.(1) of the Replacement Cost Optional Coverage so that the personal-property-of-others carve-out no longer applies, and provides that where an item of personal property of others is subject to a written contract governing the insured's liability for loss or damage to it, valuation of that item is based on the amount for which the insured is liable under that contract, but not to exceed the lesser of the replacement cost of the property or the applicable Limit of Insurance.
- Section A.5 opens with the words Except as otherwise provided before describing where the Coverage Extensions apply.
Published: 2012-10
Active - [7]Commercial Insurance Guide (CDI Form 700)(opens the original record on California Department of Insurance)California Department of InsuranceRegulatorPrimaryJurisdiction CALast checked August 31, 2026Updates: revised by the California Department of Insurance without a fixed schedule; the page carries the marker Form 700 Revised June 14, 2024ID
ca-cdi-commercial-insurance-guideWhat this source supports (33)
- The guide's glossary entry headed 'Claims Made' reads: a liability insurance policy where coverage applies to claims filed during the policy period no matter when the loss occurred subject to a retroactive inception date.
- The guide's glossary entry headed 'Occurrence' reads: a liability insurance policy that covers claims arising out of occurrences that take place during the policy period, regardless of when the claim is filed.
- CDI states that there are three primary coverage sections that make up a CGL policy: premises liability, products liability and completed operations.
- CDI describes CGL coverage as comprehensive in nature, covering all hazards within the scope of the insuring agreement that are not otherwise excluded.
- CDI states that the major exclusions under a CGL policy include intentional injury; insured contracts; liquor liability; workers compensation and employers liability; pollution; aircraft; automobile; watercraft; mobile equipment; war; care, custody, and control; damage to your work; impaired property; sistership liability; and failure to perform.
- CDI describes specified perils as consisting of a list of each peril to be insured against, such as fire, explosion, windstorm and vandalism, and describes open perils coverage as covering all losses unless they are specifically excluded.
- CDI states that earth movement (including earthquake) and flood are two common perils that are excluded under open perils coverage.
- CDI describes three commercial property valuation approaches: actual cash value, agreed value, which it says waives any coinsurance penalty and pays 100 percent of the stated amount, and replacement cost, which it describes as the amount it takes to replace property with new property of like kind and quality up to the limits of insurance.
- CDI describes coinsurance as an insurance clause that defines the amount of each loss the company pays according to the amount of insurance carried divided by the amount of insurance required, and states that a policyholder can be subject to a monetary penalty at the time of a loss where a building is not insured to value.
- CDI states that business interruption coverage replaces lost business income after a covered loss.
- CDI describes a Business Owners Policy (BOP) as a combination commercial policy that covers property, general liability and business interruption.
- CDI states that when a business has had three applications turned down from a licensed commercial insurance carrier, with written documentation of the declination, it can proceed to obtain insurance from the surplus line market.
- CDI states that a surplus line company can only be accessed through a specially licensed broker who holds a surplus line license issued by the CDI.
- CDI states that although surplus line insurers must follow the Fair Claims Settlement Practices Regulations, the CDI has limited jurisdiction over the operation of surplus line insurers.
- CDI states that the California Insurance Guarantee Association (CIGA), which protects claims with admitted insurers, does not apply to surplus line insurers.
- There are three primary coverage sections that make up a CGL policy: premises liability, products liability and completed operations.
- Premises liability covers liability for accidental injury or property damage that results from either a condition on your premises or your operations in progress, whether on or away from your premises.
- A products liability hazard exists for any business that manufactures, sells, handles, or distributes goods or products.
- Completed operations covers your potential liability for bodily injury or property damage that arises out of your completed work.
- The CGL policy has separate limits of insurance for general liability, fire legal liability, products and completed operations liability, advertising and personal liability, and medical payments.
- The page carries the line Form 700 Revised June 14, 2024.
- The guide states that inland marine is a specialized type of property insurance that primarily covers damage to or destruction of your business property while in transport.
- The guide states that inland marine insurance can cover a variety of transportation exposures, however it does not cover boating transportation, which is covered under ocean marine insurance.
- The guide states that some of the most common types of coverage offered are accounts receivable insurance, consignment insurance, equipment floaters (i.e., contractors equipment), installation floaters, motor truck cargo insurance, trip transit insurance, and valuable papers (records) insurance.
- The guide states that standard perils in inland marine may include fire, lightning, windstorm, flood, earthquake, landslide, theft, collision, derailment, overturn of the transporting vehicle, and bridge collapse.
- The guide states that commercial property insurance can protect a business owner from some of the most common losses experienced by business owners, such as property damage, business interruption, theft, liability, and worker injury.
- The guide states that an aggregate limit of liability is in force for the general liability, fire legal liability, advertising and personal liability, and medical payments claims.
- The guide states that when total claims for all these areas exceed a stated annual aggregate limit of liability, the policy limits are exhausted and no more claims will be paid from the policy for the duration of the policy period.
- The guide states that there is also a separate aggregate limit of liability in force for products and completed operations liability claims.
- The guide defines split limits as the technique for expressing limits of liability coverage under a particular insurance policy by stating separate limits for different types of claims growing out of a single event or combination of events.
- The guide states that if a building is not insured to value the insured can be subject to a monetary penalty at the time of a loss, commonly referred to as coinsurance, and defines coinsurance as an insurance clause that defines the amount of each loss that the company pays according to the amount of insurance carried, divided by the amount of insurance required.
- The guide states that the California Insurance Guarantee Association (CIGA), which protects claims with admitted insurers, does not apply to surplus line insurers.
- The guide states that while surplus line companies are not licensed by the CDI, they do have to go through an approval process that includes providing evidence of minimum capital and surplus requirements.
Fetched 2026-08-31 and both glossary entries read off the page. The '?page=3' query parameter used in the earlier draft is inert and has been dropped from the URL. publishedDate is taken from the page's own 'Form 700 Revised June 14, 2024' marker. This is a consumer guide glossary and the weakest authority in the bundle; it is cited only for the two trigger definitions. It does not address retroactive dates, extended reporting periods, or which lines are written on which trigger. Published: 2024-06-14 Effective: 2024-06-14
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