1. Forms
2. CG
3. CG-00-01

Commercial General Liability Coverage Form (CG 00 01 - Occurrence Form)

The CG 00 01 is a standard insurance policy form developed by the Insurance Services Office (ISO) that provides Commercial General Liability (CGL) coverage on an "occurrence" basis. This means the policy responds to bodily injury or property damage that occurs during the policy period, regardless of when the claim is actually made. This is a foundational coverage for many businesses, designed to protect them from liability claims alleging the insured's negligence or acts/omissions resulted in injury to a third party or damage to their property. The form also includes coverage for personal and advertising injury, such as libel, slander, or copyright infringement. It's crucial to understand that the CG 00 01 works in conjunction with a Declarations page (like the CG DS 01) which personalizes the policy with specific information like named insured, policy limits, and covered premises, and the Common Policy Conditions (IL 00 17) which outlines conditions applicable to most commercial policies.

Classes of Business

The CG 00 01 is remarkably versatile and applies to a vast array of commercial enterprises across nearly all industries. Its broad nature is intended to eliminate the need for selecting individual specific hazards, thereby reducing potential gaps in coverage. Examples of businesses and scenarios where this form is commonly used include:

• Main Street Businesses: Retail stores, restaurants, and offices for incidents like a customer slipping and falling on the premises (bodily injury) or an employee accidentally damaging a customer's property.
• Contractors and Construction: General contractors and subcontractors for liability arising from ongoing operations (e.g., debris falling and injuring a passerby) or completed operations (e.g., a faulty installation later causing property damage). However, specific endorsements may limit coverage for work performed by subcontractors or for construction defects.
• Manufacturing: Companies producing goods, for liability if their product causes bodily injury or property damage after it has left their control (products-completed operations hazard).
• Real Estate Owners and Lessors: Owners of commercial buildings for incidents occurring on their property, such as a tenant's guest being injured in a common area.
• Service Businesses: A wide range of service providers, though it's important to note the CGL form typically excludes professional liability exposures, which would require a separate Errors & Omissions policy.

Special Considerations

While the CG 00 01 provides broad coverage, there are several important considerations:

• Occurrence Trigger: The "occurrence" trigger is a key feature. The injury or damage must happen during the policy period. This differs from a "claims-made" form (like the CG 00 02) where the claim must be made during the policy period (or an extended reporting period).
• Exclusions: The form contains numerous exclusions that significantly shape the coverage. Common exclusions include, but are not limited to:
  • Expected or Intended Injury.
  • Contractual Liability (though there are exceptions for "insured contracts").
  • Liquor Liability (for businesses that manufacture, distribute, sell, serve, or furnish alcoholic beverages).
  • Workers' Compensation and Employer's Liability.
  • Pollution (though some limited exceptions may apply). Insurers, especially in the Excess & Surplus market, may attach more restrictive total pollution exclusions.
  • Aircraft, Auto, or Watercraft (as these are typically covered by separate policies).
  • Damage to Your Product or Your Work (often referred to as business risk exclusions, though an exception often exists for work performed by a subcontractor).
  • Damage to Property (care, custody, or control exclusions may apply).
  • War.
  • Recall of Products, Work or Impaired Property.
• Coverage Territory: Coverage is generally limited to occurrences within the United States, its territories and possessions, Puerto Rico, and Canada. Limited worldwide coverage may apply for products sold or activities of a person whose home is in the standard coverage territory but is temporarily away on business.
• Reading the Policy: The policy explicitly encourages the named insured to read the entire form carefully to understand their rights, duties, and what is and is not covered. The definitions section is critical to understanding the scope of coverage.
• Contractual Requirements: Many contracts, such as construction agreements or leases, will specifically require the CG 00 01 form and certain minimum limits of liability.

Key Information for Agents and Underwriters

Agents and underwriters play a critical role in ensuring appropriate coverage with the CG 00 01:

• Risk Assessment: Underwriters will scrutinize the named insured's operations, premises, products, and completed operations exposures. This includes understanding the nature of the business, loss history, safety protocols, and any unique hazards.
• Pricing: Premiums are influenced by the type of business, geographic location, limits of liability, deductibles, and the insured's specific risk profile and loss experience. Minimum premiums often apply.
• Coverage Gaps: Agents must be vigilant in identifying potential coverage gaps. For example:
  • Professional Liability: The CG 00 01 typically excludes professional services. Businesses providing advice or specialized services (e.g., architects, engineers, consultants) need separate Professional Liability (Errors & Omissions) coverage.
  • Cyber Liability: While some limited coverage for "personal and advertising injury" offenses via the internet might exist, dedicated cyber liability insurance is generally necessary for data breach, network security, and other cyber-related risks.
  • Pollution Liability: The standard pollution exclusion is broad. Businesses with significant environmental exposures will likely need separate Contractors Pollution Liability or Environmental Impairment Liability coverage.
  • Employment Practices Liability: While the CG 00 01 excludes employment-related practices, separate EPLI coverage is needed for claims like wrongful termination, discrimination, or harassment.
• Endorsements: The CG 00 01 is often modified by numerous endorsements that can either broaden or restrict coverage. It is crucial to review all endorsements carefully. For example, endorsements can add additional insureds, modify exclusions (like the "your work" exclusion for subcontractors), or add deductibles.
• "Your Work" and Subcontractors: A common area of concern, especially in construction, is the "damage to your work" exclusion. The standard form often contains an exception if the damaged work, or the work out of which the damage arises, was performed by a subcontractor. However, endorsements like the CG 22 94 can remove this exception, creating a significant coverage gap for general contractors.
• Contractual Liability: While the form provides coverage for liability assumed under an "insured contract," agents should review contracts to ensure the policy's definition of "insured contract" aligns with the obligations their client is assuming. Some endorsements may restrict this coverage.
• Defense Obligation: The insurer has the right and duty to defend the insured against suits seeking damages covered by the policy. This duty typically ends when the applicable limit of insurance has been exhausted by the payment of judgments or settlements.
• Declarations (CG DS 01): The declarations page is critical as it lists the named insured, policy period, limits of insurance (including general aggregate, products-completed operations aggregate, personal and advertising injury limit, each occurrence limit, damage to premises rented to you limit, and medical expense limit), and a schedule of covered premises.
• Common Policy Conditions (IL 00 17): This separate form contains conditions like cancellation, changes, examination of books and records, inspections and surveys, and transfer of rights and duties, which apply to the CGL coverage part unless specifically amended.