1. Forms
2. CG
3. CG-00-04

What the form is

The CG 00 04, specifically identified with the edition date 02 86 as the "When We Do Not Renew" endorsement, is an insurance policy provision issued by ISO. Its primary function is to modify the Conditions section of various liability coverage forms to which it is attached. This endorsement formally outlines the insurer's obligations and the procedures they must adhere to if they elect not to renew the insurance policy or coverage part at the end of its term. It typically specifies the minimum advance written notice the insurer must provide to the first named insured before the nonrenewal takes effect.

Classes of business it applies to

This endorsement is not specific to particular industries but applies to any commercial policyholder whose liability coverage includes one of the forms that the CG 00 04 can modify. These forms include, but are not limited to:

• Commercial General Liability Coverage Form (Occurrence Version) (e.g., CG 00 01)
• Liquor Liability Coverage Form (Occurrence Version) (e.g., CG 00 33)
• Owners and Contractors Protective Liability Coverage Form (e.g., CG 00 09)
• Products/Completed Operations Liability Coverage Form (Occurrence Version) (e.g., CG 00 37)
• Railroad Protective Liability Coverage Form (e.g., CG 00 35)

For example, a retail store with a Commercial General Liability policy, a bar with a Liquor Liability policy, or a general contractor requiring an Owners and Contractors Protective Liability policy for a specific project owner could all have this endorsement attached to their respective coverage parts.

Special considerations

• Clarity on Nonrenewal: This endorsement provides important clarity for the insured regarding their rights and the insurer's duties concerning policy nonrenewal. It helps prevent misunderstandings by setting forth the "rules of engagement" for nonrenewal.
• State Law Compliance: While this endorsement provides a contractual basis for nonrenewal procedures, state laws often dictate minimum notice periods and permissible reasons for nonrenewal. This endorsement generally works in conjunction with, and may be superseded by, applicable state regulations if those regulations impose stricter requirements on the insurer. Agents and insureds should be aware of their specific state's laws.
• Documentation: It is crucial for insurers to meticulously document their adherence to the notice provisions outlined in this endorsement and any overriding state laws to avoid potential disputes or claims of bad faith.
• Potential for Confusion: Some external documents or contractual requirements may occasionally and likely erroneously refer to "CG 00 04" with an edition date as a primary Commercial General Liability (CGL) occurrence coverage form. However, the standard ISO CGL occurrence form is CG 00 01. The most clearly identifiable function of a standard ISO form designated CG 00 04 is this "When We Do Not Renew" endorsement.

Key information for agents and underwriters

• Agent's Role: Agents should explain the nonrenewal provisions, including this endorsement, to their clients so they understand the process and their rights if a nonrenewal notice is received. This helps manage client expectations.
• Underwriter's Responsibility: When an underwriter decides to non-renew a policy to which this endorsement applies, they must ensure that the nonrenewal process strictly follows the terms of the endorsement and all applicable state laws, particularly regarding the timing and delivery of the nonrenewal notice.
• Risk Management: For insurers, consistent and fair application of nonrenewal procedures, as outlined in this endorsement, is a key aspect of risk management and maintaining regulatory compliance.
• No Direct Pricing Impact: This endorsement itself does not typically have a direct impact on the premium calculation for the underlying coverage. It is a procedural condition.