Product Update

New Hired Auto, Electronic Data Liability, GMO, and Pollution Endorsements Added to Commercial Liability Insurance


Insurance Services Office, Inc. (ISO), has filed a number of new endorsements for use with the standard commercial general liability (CGL) coverage form and some miscellaneous general liability coverage forms as well as revised versions of several other standard CGL endorsements. Implementation of the new and revised forms is scheduled in most jurisdictions for December 1, 2019. The endorsements addressed in the filing affect a range of coverage topics. This Commercial Liability Insurance release includes a number of annotations for new endorsements introduced in the filing.

A developing liability exposure for shippers, expediters, and logistics companies is the possibility that they may be held liable, in a variety of legal theories, for the operation of motor vehicles in transport activities arranged by them. As a form of vicarious liability involving autos not "owned or operated by or rented or loaned to" the insured, the exposure is arguably covered by the standard CGL policy despite the "aircraft, auto or watercraft" exclusion. ISO has developed a new exclusionary endorsement, Exclusion—Hired Auto Liability (CG 40 11), that will make it possible for CGL insurers to eliminate coverage of this liability exposure. The endorsement excludes injury or damage arising out of the maintenance, use, or entrustment of a "hired auto," a defined term that refers to any auto leased to, for, or by or hired or borrowed for or by any insured.

Also included in this release are annotations of two new alternative endorsements to Electronic Data Liability (CG 04 37).

There are also four new genetically modified organism (GMO) endorsements, two for use with the standard CGL and the products-completed operations policy.

Lastly, there are new pollution endorsements for use with the owners and contractors protective liability policy.

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