Error Omissions
Error Omissions
Submit your information below so we can contact you with a FREE quote
[All fields are required.]
Actual Annual Revenue:
Verify:
=
I have read and agreed to theTerms & Conditions
Error Omissions
Error Omissions

Insurance Agent E&O: Review & Understand Recent ISO Changes to CGL Program


Insurance Agent E&O Review & Understand Recent ISO Changes to CGL ProgramCheck Out Coverage Revisions for Possible Impact to Client Policies

The Insurance Services Office (ISO), a supplier of statistical, actuarial, underwriting, and claims data that includes providing insurance policy language and rules to write and rate insurance policies, recently made changes to the Commercial General Liability (CGL) insurance program. These changes took effect April 1, 2013 with some revisions broadening or narrowing coverage while others are simply editorial changes with no effect on the coverage.

As an insurance agent or broker, it’s important to speak with your insurers to see if they are adopting the various ISO changes in their policies and then review these revisions carefully to determine which if any will impact your clients’ insurance program. This not only serves to make sure your clients continue to be properly covered but also is a key risk management/loss prevention tool in mitigating your exposures for potential Errors & Omissions (E&O) claims.

For example, ISO has reviewed several court cases as they relate to the Liquor Liability exclusion in the CGL policy. As a result of these cases, ISO revised the exclusion in the policy to state that it will be applicable “even if the claims allege negligence or wrongdoing in: the supervision, hiring, employment, training or monitoring of others; or providing or failing to provide transportation with respect to any person that may be under the influence of alcohol.” In expanding the Liquor Liability exclusion,  coverage is now narrowed, and should be discussed with any bar or establishment that provides/serves alcohol.

There were also changes made to the Pollution Liability Coverage Form Designated Sites (CG 00 39) and the Pollution Liability Limited Coverage Form Designated Sites (CG 00 40) that could reduce coverage in certain states. These changes should be reviewed carefully to determine if there is any negative impact to the scope of coverage. Moreover, there were several other changes made to various sections of the CGL policy, including to a number of Additional Insured Endorsements and an amendment to the Personal & Advertising Injury Definition Endorsement, to name a couple, that can also affect your insureds if adopted by the carriers in their policy forms.

Be sure you and your agency staff understand all recent ISO changes and, if appropriate, explain them to clients whose insurance program may be impacted. What’s more, as always ensure that your E&O policy has been recently reviewed and takes into account all the services you provide as an insurance agent. At Axis Insurance Services, LLC, we have the breadth and depth of experience and knowledge and the markets to provide you with the proper E&O policy. Please give us call at (877) 787-5258 to discuss your individual insurance program.

Sources: ISO, AIIA

Comments

comments

Blogged on: May 23, 2013 by Mike Smith
Error Omissions
Error Omissions
Submit your information below so we can contact you with a FREE quote
[All fields are required.]
Actual Annual Revenue:
Verify:
=
I have read and agreed to theTerms & Conditions
Error Omissions
Error Omissions