1. Forms
2. CG
3. CG-00-33

What the Form Is

CG 00 33 is an Insurance Services Office (ISO) commercial general liability coverage form that provides Liquor Liability coverage on an "occurrence" basis. This means the policy in effect when the "bodily injury" or "property damage" occurs is the one that responds to the claim, regardless of when the claim is actually filed. This form is essential for businesses involved with alcoholic beverages because standard Commercial General Liability (CGL) policies (like CG 00 01) typically include a liquor liability exclusion. This exclusion negates coverage for "bodily injury" or "property damage" for which an insured may be held liable by reason of: causing or contributing to the intoxication of any person; furnishing alcoholic beverages to a person under the legal drinking age or who is already under the influence of alcohol; or violating any statute, ordinance, or regulation relating to the sale, gift, distribution, or use of alcoholic beverages. The CG 00 33 is specifically designed to fill this significant coverage gap for eligible businesses.

Classes of Business It Applies To

This form is intended for insureds engaged in the business of manufacturing, distributing, selling, serving, or furnishing alcoholic beverages. Real-world examples include:

• Restaurants and diners that serve alcohol
• Bars, taverns, and nightclubs
• Package liquor stores
• Hotels and motels with bars or that offer alcoholic beverages via room service
• Convenience stores and grocery stores that sell alcohol
• Manufacturers of alcoholic beverages (e.g., breweries, wineries, distilleries)
• Distributors of alcoholic beverages
• Caterers who serve alcohol at events
• Non-profit organizations holding fundraisers where alcohol is sold or served
• Establishments that permit patrons to "Bring Your Own Bottle" (BYOB), which may also require endorsement CG 24 06 for clear coverage.

Special Considerations

• Occurrence Basis: Claims are covered if the injury or damage occurred during the policy period, regardless of when the claim is reported (subject to applicable statutes of limitations). This is a key distinction from the claims-made version of this coverage, CG 00 34.
• Dram Shop Laws: The necessity and specific requirements for this coverage are heavily influenced by state and local "dram shop" or liquor control laws. These laws can impose liability on businesses for injuries or damages caused by intoxicated patrons they served.
• "In the Business Of": The standard CGL policy's liquor liability exclusion typically applies if the insured is "in the business of" manufacturing, distributing, selling, serving, or furnishing alcoholic beverages. CG 00 33 provides the specific coverage needed by these entities.
• BYOB Establishments: If a business allows patrons to bring their own alcoholic beverages onto the premises for consumption, the standard CG 00 33 wording might not be sufficient. Endorsement CG 24 06 (Liquor Liability–Bring Your Own Alcohol Establishments) can be added to clarify that such activity is considered part of selling, serving, or furnishing alcoholic beverages for the purpose of this coverage.
• Volunteer Workers: Unlike some CGL forms, volunteer workers are not automatically included as insureds under the base CG 00 33 form. Endorsement CG 34 06 (Additional Insured – Volunteer Workers) is available to extend insured status to volunteers performing duties related to the insured's business.
• Trusts as Named Insureds: The 04 13 edition of the CG 00 33 form was revised to include Trusts in the definition of "Who Is An Insured," allowing a trust to be a Named Insured.
• Coverage Territory: The policy generally covers "bodily injury" or "property damage" that occurs within the defined coverage territory, which typically includes the United States of America (including its territories and possessions), Puerto Rico, and Canada.

Key Information for Agents and Underwriters

• Risk Assessment: Underwriters must thoroughly evaluate the applicant's operations. Key factors include:
  • The type of establishment (e.g., fine dining restaurant vs. high-volume nightclub vs. convenience store).
  • The percentage of total sales derived from alcohol.
  • Hours of operation, especially late-night hours.
  • Implementation and enforcement of responsible server training programs (e.g., TIPS, ServSafe Alcohol).
  • The business's prior history of liquor-related incidents or claims.
  • Security measures in place (e.g., ID scanners, trained security personnel).
  • The establishment's proximity to other venues or high-risk areas.
  • Full compliance with all local and state liquor laws and regulations.
• Pricing and Limits: Premiums are determined by the assessed risk, the desired limits of insurance (both per common cause and aggregate), and the legal environment of the state(s) of operation (particularly the nature of dram shop laws). Agents should guide clients in selecting limits that adequately address their potential exposure.
• Exclusions: While providing specific liquor liability coverage, the CG 00 33 still contains other exclusions common to liability policies, such as those for expected or intended injury, workers' compensation obligations, most pollution incidents, and liability arising from aircraft, auto, or watercraft (unless specifically endorsed).
• Relevant Endorsements: Agents and underwriters should be familiar with endorsements that modify or enhance coverage, such as:
  • CG 24 06 for businesses with BYOB exposures.
  • Additional Insured endorsements, for example, for premises owners/lessors (CG 34 01) or franchisors (CG 34 02).
  • CG 34 06 to provide coverage for volunteer workers.
  • CG 20 01 if primary and non-contributory wording is required for an additional insured.
• Alternative Form: If a claims-made basis of coverage is preferred or deemed more appropriate for the risk, CG 00 34 (Liquor Liability Coverage Form - Claims-Made Version) is the corresponding ISO form.
• Coordination with CGL: When CG 00 33 is issued, it's important to ensure the insured's regular CGL policy is appropriately handled regarding its liquor liability exclusion. Sometimes, an endorsement like CG 21 50 (Amendment of Liquor Liability Exclusion) might be attached to the CGL to reinforce that the CGL provides no liquor coverage, avoiding ambiguity, although the CG 00 33 is specifically designed to cover this exposure.