What it does
CG 03 00 makes the insurer's obligation to pay damages under bodily injury and property damage liability apply only to damages in excess of the deductible shown in the schedule. The deductible can be written on a per claim basis (each person) or a per occurrence basis, for BI, PD, or BI and PD combined.
Who needs it
Contractors, apartment owners, manufacturers and other accounts where a deductible lowers premium or is required by the carrier for certain classes.
Key provisions and limits
- Defense and the insured's duties after an occurrence apply regardless of the deductible.
- The insurer may pay all or part of the deductible to settle a claim, and the insured must promptly reimburse it.
- Under the per claim basis, each person claiming for care, loss of services or death resulting from bodily injury triggers a separate deductible.
- An "Application of Endorsement" box can restrict the deductible to particular operations or hazards.
Quoting and selling notes
- Explain that the deductible applies to damages, not defense, and that one occurrence can generate several per claim deductibles.
- Liquor liability uses CG 03 05.
- Many carriers use their own deductible forms that also apply to defense costs; compare carefully.
