Effective April of 2017, ISO has filed revisions to the Limitation of Coverage to Designated Premises, Project or Operations endorsement. Due to ever broadening court interpretation, the revision no longer includes the language “and operations necessary or incidental to those premises”. This change aims to remove ambiguity and to limit coverage to the described location, project or operation. There will be new editions of BP 04 12, CG 21 44, CU 21 11 and CX 21 10.
The result is that the grey area just got a lot smaller. Where the “necessary or incidental language” provided some implication of coverage for offsite operations, the new language requires the occurrence to take place on the premises scheduled or appurtenant grounds or structures. The revisions will have coverage consequences for Community Associations, Apartments and Property Managers whose policies often contain this endorsement, if the revisions are adopted by their carriers.
Liability arising from offsite meetings, business errands, new client interviews and other “necessary and incidental’ activities may need to be addressed for Community Associations, Apartments and Property Managers in the Real Estate niche.
Below are links to further treatment of the subject and a link to CG2144.
- Designated Premises, Operations and Projects Endorsements
- New ISO Filing on CG 21 44 Designated Premises Limitation
- ISO Adopts A New Designated Premises Endorsement To Respond
To Recent Insurer Losses
- Limitation of Coverage Designated Premises or Project – BP 04 12 01 06
- Limitation of Coverage Designated Premises or Project – CG 21 44 07 98