Subject:  New ISO Filing on CG 21 44 Designated Premises Limitation

Background:  The CG 21 44 endorsement significantly restricts the coverage provided by the unendorsed CGL (Commercial General Liability) policy.  When this endorsement is attached to a CGL, Coverage A (BI/PD Liability), Coverage B (Personal and Advertising Injury), and Coverage C (Medical Payments) apply only as follows:

          CG 21 44 07 98
          Limitation of Coverage to Designated Premises or Project
          This insurance applies only to "bodily injury", "property damage", "personal and          advertising injury" and medical expenses arising out of:

          1. The ownership, maintenance or use of the premises shown in the Schedule       and operations necessary or incidental to those premises; or

          2. The project shown in the Schedule.

Just how restrictive this endorsement actually is has been the subject of much discussion since it was first introduced as a part of the ISO Simplification program in 1985.  That is due to the varying interpretations as to the extent of coverage, if any, that would apply to “operations necessary or incidental to those premises” that are not shown in the Schedule.

Main Points:  In response to adverse litigation (discussed below) over the intent of the phrase “operations necessary or incidental to those premises,” ISO (Insurance Services Office) is making countrywide filings for a revised edition of the CG 21 44.  The Louisiana Department of Insurance has approved the filing, with an effective date of 4/1/17.