1. Forms
2. CG
3. CG-24-51

What the Form Is

The CG 24 51 is an endorsement to the standard Commercial General Liability (CGL) policy. Its primary purpose is to modify the policy's typical exclusion of coverage for aircraft to provide limited Bodily Injury and Property Damage Liability (Coverage A) for specifically identified unmanned aircraft, commonly known as drones. For coverage to apply, the unmanned aircraft, as well as the specific operation or project it's being used for, must be detailed in the endorsement's schedule. This endorsement essentially carves back a narrow exception to the broader aircraft exclusion for scheduled drones engaged in specified activities.

Classes of Business It Applies To

This endorsement is relevant for a wide range of commercial enterprises that utilize drones for specific, designated projects. Examples include:

• Construction: Site surveys, progress monitoring, inspections of hard-to-reach areas.
• Real Estate: Aerial photography and videography of properties.
• Agriculture: Crop monitoring, field mapping, and precision agriculture tasks.
• Media and Entertainment: Aerial filming for movies, television, or news gathering.
• Energy and Utilities: Inspection of power lines, pipelines, and other infrastructure.
• Surveying and Mapping: Creating detailed topographical maps or surveys.

Essentially, any business using drones in a capacity where bodily injury or property damage to third parties is a risk could potentially utilize this endorsement, provided the use is for a scheduled and designated operation.

Special Considerations

• Scheduled Basis: Coverage only applies to the unmanned aircraft specifically listed in the endorsement schedule and only for the operations or projects also described in the schedule. Unscheduled aircraft or operations are not covered.
• Coverage A Only: This endorsement explicitly limits coverage to Bodily Injury and Property Damage Liability (Coverage A). It does not provide coverage for Personal and Advertising Injury Liability (Coverage B), such as claims arising from invasion of privacy.
• Aggregate Limit: The endorsement allows for a separate aggregate limit to apply specifically to the unmanned aircraft operations, which would be shown in the schedule.
• Exclusionary Context: This form is typically used when an insurer is willing to provide some drone coverage, as opposed to applying a broad unmanned aircraft exclusion like the CG 21 09. If CG 24 51 is attached, then exclusionary forms like CG 21 09 or CG 21 10 (which excludes unmanned aircraft for Coverage A) would not be used.
• Regulatory Compliance: The operation of the unmanned aircraft must comply with all applicable Federal Aviation Administration (FAA) regulations (e.g., Part 107) and any state or local laws. Non-compliance could potentially jeopardize coverage.
• No Physical Damage to Drone: This liability endorsement does not cover physical damage to the drone itself. Separate inland marine coverage (e.g., using forms like IH 99 29 or IH 00 61) would be needed for that exposure.

Key Information for Agents and Underwriters

• Risk Assessment: A thorough evaluation of the risk is crucial. This includes assessing the type and specifications of the drone, the nature and location of the scheduled operations (e.g., urban vs. rural, proximity to airports or crowds), the experience and training of the drone operator(s), and the insured's safety protocols.
• Coverage Gaps: Agents must clearly explain to insureds that this endorsement only addresses Coverage A. If Personal and Advertising Injury (e.g., privacy claims, which are a significant exposure with drones) is a concern, then endorsement CG 24 50 (Limited Coverage for Designated Unmanned Aircraft - Coverages A and B) or CG 24 52 (Coverage B only) should be considered. The lack of coverage for physical damage to the drone itself should also be highlighted.
• Underwriting Diligence: Underwriters should ensure the schedule is meticulously completed, clearly defining the specific unmanned aircraft (make, model, serial number) and the precise operations or projects for which coverage is being granted. Vague descriptions should be avoided. Confirmation of the operator's FAA certification and adherence to safety guidelines is recommended.
• Pricing Considerations: The premium for this endorsement will depend on the assessed risk, including the drone's capabilities, its intended use, the operational area, operator expertise, and the limits of liability requested. The specific aggregate limit for unmanned aircraft operations will also be a rating factor.
• Alternative Solutions: For insureds with more extensive or complex drone operations, a standalone Unmanned Aircraft Systems (UAS) insurance policy might be a more appropriate solution than relying solely on a CGL endorsement.