1. Forms
2. CG
3. CG-21-51

What the Form Is

The CG 21 51, titled "Amendment Of Liquor Liability Exclusion – Exception For Scheduled Premises Or Activities," is an endorsement to the standard Commercial General Liability (CGL) policy. The CGL policy typically excludes coverage for liability arising from causing or contributing to the intoxication of any person; the furnishing of alcoholic beverages to a person under the legal drinking age or under the influence of alcohol; or any statute, ordinance, or regulation relating to the sale, gift, distribution, or use of alcoholic beverages, if the insured is in the business of manufacturing, distributing, selling, serving, or furnishing alcoholic beverages. This endorsement modifies that exclusion. Specifically, it allows an insured to have liquor liability coverage for specific events or activities that are explicitly listed (scheduled) on the endorsement. For these scheduled items, the liquor liability exclusion will not apply in the manner it otherwise would.

Classes of Business It Applies To

This endorsement is typically used for insureds who are not primarily in the business of selling or serving alcohol but may have specific, limited liquor exposures. Examples include:

• Organizations hosting occasional events: Social clubs, non-profit organizations, or businesses holding fundraisers, parties, picnics, or other events where alcohol is sold or served. For instance, a rotary club hosting an annual fundraising dinner where wine is sold.
• Businesses with incidental liquor exposure: A professional services firm hosting an annual holiday party for clients and employees where alcoholic beverages are provided.
• Bring Your Own Bottle (BYOB) situations (with caveats): While the unendorsed April 2013 CGL form was amended to state that merely permitting BYOB is not, by itself, considered being in the business of selling/serving alcohol, attaching the CG 21 51 (04 13 edition) can actually make the exclusion *apply* to BYOB establishments unless the BYOB activity for a specific scheduled event or premises is listed as an exception on this endorsement.

Special Considerations

• Scheduling is Key: Coverage under this endorsement only applies to the precise premises or activities described in the schedule of the endorsement. Any liquor-related liability arising from unscheduled activities or premises remains excluded.
• Potential for Stricter Exclusion: Paradoxically, adding this endorsement can, in some ways, broaden the applicability of the liquor exclusion to situations beyond just being "in the business of" selling alcohol, especially concerning BYOB if not properly scheduled. The 04 13 edition of CG 21 51, for instance, revises the exclusion to apply if the insured permits any person to bring alcoholic beverages onto their premises for consumption there, unless that specific activity is scheduled as an exception.
• Underwriting Approval: The use of this endorsement and the acceptability of the scheduled activities are subject to underwriter review and approval. There may be an additional premium.
• Not a Substitute for Full Liquor Liability Coverage: For businesses with regular or significant liquor exposures (e.g., restaurants that regularly serve alcohol, bars, liquor stores), a dedicated Liquor Liability Coverage Form (like CG 00 33 or CG 00 34) is generally more appropriate.

Key Information for Agents and Underwriters

• Thorough Risk Assessment: Underwriters must carefully evaluate the specific activities listed in the schedule. Consider the frequency, scale, controls (e.g., server training, ID checks, security measures), and type of alcohol being served or sold.
• Precise Scheduling Language: Agents should work with insureds to ensure the description of scheduled premises or activities is accurate and comprehensive to avoid coverage gaps.
• Identify All Exposures: It's crucial to identify all potential liquor exposures the insured may have. If an exposure is not scheduled, it's not covered by this endorsement's exception.
• Edition Dates Matter: The 04 13 edition of this form introduced significant changes, particularly regarding BYOB establishments. Always refer to the specific edition date of the endorsement being used.
• Alternative Endorsement CG 21 50: Endorsement CG 21 50, "Amendment of Liquor Liability Exclusion," also modifies the liquor exclusion but does *not* provide the option to schedule exceptions. CG 21 51 is used when the intent is to carve back coverage for specific, identified exposures.
• State-Specific Rules: While generally an ISO standard form, there might be state-specific rules or approvals affecting its use. For example, one source noted that it was not approved for general use in Texas but could be used on a "large risk."