What the form is
The CG 22 32, titled "Exclusion – Professional Services – Blood Banks," is an endorsement used with the Commercial General Liability (CGL) policy. Its primary purpose is to eliminate coverage for liability stemming from the professional services provided by an insured blood bank. This means that claims related to errors, omissions, or negligence in the specialized services of a blood bank, such as the collection, testing, storage, or distribution of blood and blood products, as well as any professional medical services rendered, are not covered by the CGL policy when this endorsement is attached. The intent is to ensure that such professional exposures are covered by a dedicated Professional Liability policy designed for blood banks, such as the PR 00 07 Blood Banks Professional Liability Coverage Form.
Classes of business it applies to
This endorsement is specifically designed for and applies to blood banks. Any organization whose operations involve the procurement, processing, storage, and distribution of blood and blood components would be subject to this exclusion if attached to their CGL policy. For example:
- A community blood center that collects donations, tests blood for infectious diseases, and supplies blood to local hospitals.
- A hospital-based blood bank that manages the blood supply for its patients.
- Specialized blood product facilities that process blood into various components.
If a patient contracts an illness due to improperly screened blood provided by an insured blood bank, or if an injury occurs during the blood donation process due to alleged professional negligence, the CG 22 32 endorsement would preclude coverage for these claims under the CGL policy.
Special considerations
It's crucial to understand that this endorsement creates a significant gap in the CGL coverage for the professional activities of a blood bank. Therefore, it is imperative that an insured blood bank secures separate Professional Liability insurance (often called Errors and Omissions or Malpractice insurance) to cover these excluded exposures.
The April 2013 (04 13) edition of this form includes revisions intended to provide consistency with the language used in the PR 00 07 Blood Banks Professional Liability Coverage Form. Additionally, this and other professional service exclusion endorsements were enhanced to clarify that the exclusion applies to claims alleging negligence or other wrongdoing in the "hiring, employment, training, supervision or monitoring of others by any insured" if the underlying act being supervised falls within the professional services exclusion. This was to reinforce the insurer's intent to exclude such claims, even if an element of negligent supervision was alleged.
Key information for agents and underwriters
For Agents:
- When this endorsement is present on a CGL policy for a blood bank, agents must emphasize the need for a separate Professional Liability policy. Failure to do so could leave the insured dangerously exposed.
- Clearly explain the scope of the exclusion to the insured, providing examples of claims that would not be covered by the CGL.
- Ensure the Professional Liability policy obtained by the blood bank provides adequate coverage for the exposures excluded by CG 22 32.
For Underwriters:
- This endorsement is a standard tool for managing the unique professional liability risks associated with blood banks, which are distinct from general liability risks.
- The presence of this endorsement helps ensure that the CGL policy is not unintentionally covering specialized professional exposures that require specific underwriting and rating.
- Underwriters should confirm that the insured (blood bank) understands the exclusion and has or is actively seeking appropriate Professional Liability coverage.
- When an umbrella or excess liability policy is being written, underwriters should check if a similar exclusion, such as CU 22 68 (Exclusion–Professional Services–Blood Banks for umbrella policies), is needed to maintain consistency in coverage.
- The 04 13 edition's clarification regarding negligent supervision claims is an important aspect to consider in risk assessment and when discussing coverage intent.