1. Forms
2. CG
3. CG-24-52

What the form is

The CG 24 52 is an endorsement to the Commercial General Liability (CGL) coverage part. Its primary function is to modify how Coverage B (Personal and Advertising Injury Liability) applies to exposures arising from the use of unmanned aircraft, commonly known as drones. The endorsement first introduces a broad exclusion for personal and advertising injury stemming from the ownership, maintenance, use, or entrustment to others of any unmanned aircraft. However, it then provides a specific exception to this exclusion, granting limited Coverage B for unmanned aircraft that are specifically described in the endorsement's Schedule, but only for the operations or projects also detailed in the Schedule. A separate aggregate limit for this limited unmanned aircraft liability under Coverage B may also be specified in the Schedule. The endorsement includes a definition of "unmanned aircraft".

Classes of business it applies to

This endorsement is relevant for any business that utilizes drones and therefore faces potential personal and advertising injury liabilities from their drone operations. Examples include:

• Real Estate Agencies: Using drones for aerial photography or videography of properties. This could lead to claims of invasion of privacy if, for instance, neighboring properties are inadvertently filmed.
• Photography and Videography Services: Businesses offering commercial drone imaging services for events, marketing, or inspections.
• Construction Companies: Employing drones for site surveys, progress monitoring, or inspections where the drone might capture images or data that could lead to personal or advertising injury claims.
• Media and Journalism: Using drones for news gathering, where issues of privacy, libel, or slander could arise from the footage obtained.
• Marketing and Advertising Firms: Utilizing drones in promotional campaigns, which could inadvertently lead to claims such as copyright infringement in an advertisement or invasion of privacy.
• Any business using drones for observation or data collection where such activities might impinge on personal privacy or result in other advertising-related offenses.

Special considerations

• Scheduling is crucial: For coverage to apply, the specific unmanned aircraft (e.g., make, model, serial number) and the exact operation(s) or project(s) for which it will be used must be detailed in the Schedule of the endorsement. Operations not scheduled are subject to the exclusion.
• Specific Aggregate Limit: The endorsement allows for a separate Coverage B Unmanned Aircraft Liability Aggregate Limit to be shown in the Schedule. This limit is the most the insurer will pay for all personal and advertising injury arising from scheduled unmanned aircraft. This aggregate limit is part of, not in addition to, the General Aggregate Limit of the policy.
• Coverage B Only: This endorsement specifically addresses Personal and Advertising Injury Liability. It does not provide coverage for Bodily Injury or Property Damage (Coverage A) arising from drone use. For Coverage A, endorsements like CG 24 51 (Limited Coverage For Designated Unmanned Aircraft - Coverage A Only) or CG 24 50 (Limited Coverage For Designated Unmanned Aircraft - for both A and B) would be necessary.
• Interaction with other exclusions: If a broad unmanned aircraft exclusion like CG 21 09 (Exclusion – Unmanned Aircraft) is on the policy, the CG 24 52 provides a limited buy-back of coverage specifically for Coverage B for scheduled drones and operations. Without CG 24 52 or a similar endorsement, most drone-related personal and advertising injury would be excluded.
• Definition of "Unmanned Aircraft": The policy will define "unmanned aircraft," typically as an aircraft not designed, manufactured, or modified to be controlled directly by a person from within or on the aircraft.
• Scope of Exclusion: The exclusion for unscheduled drones applies even if the claim alleges negligence in supervision, hiring, employment, training, or monitoring related to the unmanned aircraft.
• Exceptions to the Exclusion for Unscheduled Drones: The endorsement clarifies that the newly added exclusion for unscheduled drones does not apply to certain advertising injury offenses such as the use of another's advertising idea in your "advertisement" or infringing upon another's copyright, trade dress, or slogan in your "advertisement". However, if such an offense arises from a scheduled drone, it would be subject to the terms and limits of the limited coverage provided.

Key information for agents and underwriters

• Thorough Risk Assessment: Underwriters need to carefully evaluate the applicant's drone usage. This includes the types of drones, their capabilities (e.g., camera quality, data storage), the nature of operations (e.g., photography, surveillance, data gathering), geographical areas of operation (potential for privacy violations in populated vs. remote areas), pilot qualifications and training, and the company's data privacy and handling protocols.
• Accurate Scheduling: Agents must work closely with insureds to ensure that all drones intended to be covered, along with their specific operations or projects, are accurately and comprehensively listed in the endorsement's Schedule. Any ambiguity or omission could lead to a denial of coverage.
• Appropriate Limits: Consideration should be given to the potential severity of personal and advertising injury claims from drone use (e.g., large-scale invasion of privacy). The standard policy limits for Personal and Advertising Injury and the specific Unmanned Aircraft Liability Aggregate Limit (if applied) should be reviewed for adequacy.
• Identify Coverage Gaps: Agents must clearly explain that CG 24 52 only addresses Coverage B. The insured needs to assess their Bodily Injury and Property Damage (Coverage A) exposures from drone use and secure appropriate coverage, potentially through endorsements CG 24 51 or CG 24 50, or a dedicated aviation insurance policy. Physical damage to the drone itself is also not covered under the CGL.
• Regulatory Awareness: While the ISO endorsement itself may not mandate compliance with FAA (or other relevant aviation authority) regulations for coverage to apply, an insured's adherence to such regulations is a critical underwriting factor in assessing risk. Non-compliance could indicate a higher risk profile.
• Pricing Considerations: The unique risks associated with drone operations, particularly concerning privacy violations (e.g., via high-resolution cameras) and other advertising injuries, will influence the premium. Factors like the scope of operations, risk management procedures, and loss history will be important.