Claims data provided by Swiss Re Corporate Solutions reveals that the Commercial General Liability (CGL) line of business is the largest driver of E&O claims frequency.  About 20% of all E&O claims involve CGL coverage with the next most frequent underlying coverage being both personal and commercial auto combined at 13%.  For the first time in six (6) years, ISO has made numerous changes to its CGL policy forms and endorsements. There are about a dozen coverage form changes plus 80+ new or revised endorsements, including MAJOR changes in ADDITIONAL INSURED endorsements, a revision of the liquor liability exclusion for BYOB establishments, pollution exclusion changes, and more.

 

The ADDITIONAL INSURED changes include a new blanket contractual endorsement, a new “primary and noncontributory” endorsement, and a limitation of coverage for additional insureds to contractual insurance requirements. In addition to these changes, we’ll highlight some critically important coverage gaps and issues in the CGL program.

 

They say change can be a good thing, but unfortunately changes to the CGL policy form have the potential to bring E&O claims if agency staff is not familiar with the impact they will have on their customers’ coverage.  Register today by clicking here!