1. Forms
2. CG
3. CG-28-06

What the form is

The CG 28 06 Limitation of Coverage to Insured Premises endorsement is used with the Liquor Liability Coverage Part (CG 00 33). Its primary purpose is to clearly define and restrict the liquor liability coverage to specific locations that are listed in the endorsement's schedule. This means that any liability arising from the sale, serving, or furnishing of alcoholic beverages will only be covered if it occurs at the designated "insured premises." The endorsement typically includes a provision for newly acquired premises, offering coverage for a limited time (e.g., 30 days) to allow the insured to update their policy.

Classes of business it applies to

This endorsement is relevant for any business that has a liquor liability exposure and for which the insurer or the insured wishes to confine coverage to specific locations. Examples include:

• Restaurants and bars
• Nightclubs
• Liquor stores
• Hotels with bar or restaurant facilities
• Catering businesses (for their fixed locations where alcohol is stored/regularly served)
• Organizations holding events with alcohol sales at a specific, regular venue

For instance, a restaurant group owning multiple establishments might use this endorsement to ensure that the liquor liability coverage for a particular policy only applies to one or a select few of its locations, perhaps due to differing risk profiles or ownership structures.

Special considerations

Key considerations for the CG 28 06 include:

• Specificity is crucial: The exact address and description of the "insured premises" must be accurately listed in the schedule. Any ambiguity could lead to coverage disputes.
• Newly acquired premises: While there's often a short period of coverage for new locations, insureds must promptly notify their insurer to have these locations formally added to the endorsement or policy to ensure continuous coverage.
• Off-premises exposures: If the insured has liquor liability exposures away from the scheduled premises (e.g., catered events at various locations, delivery of alcohol), this endorsement would restrict coverage for such exposures unless specifically addressed elsewhere or by removing/modifying this endorsement.
• Advisory nature: It's important to note that some ISO forms, including this one, may have become advisory in certain jurisdictions or contexts after specific dates (e.g., around October 1, 1997, for CG 28 06 in some instances). This means insurers might use modified versions or have different interpretations, so the specific policy language always governs.

Key information for agents and underwriters

For Agents:

• Verify with the insured all locations where liquor liability coverage is needed and ensure they are accurately scheduled on the endorsement.
• Discuss any off-premises liquor exposures the insured may have and how those will be covered, as this endorsement limits coverage to the scheduled premises.
• Advise clients on the importance of promptly reporting any newly acquired premises where liquor liability coverage is desired.

For Underwriters:

• This endorsement is a tool to manage and control liquor liability exposure by clearly defining the covered locations.
• Risk assessment should focus on the specific characteristics and controls at the scheduled premises.
• Pricing can be more accurately determined when the geographic scope of the liquor liability risk is clearly delineated by this endorsement.
• Ensure the scheduled premises align with the information provided in the application and other policy documents.