1. Forms
2. CG
3. CG-29-53

What the form is

The CG 29 53 endorsement, titled AMENDMENT OF LIQUOR LIABILITY EXCLUSION – EXCEPTION FOR SCHEDULED PREMISES OR ACTIVITIES, is designed to modify the standard liquor liability exclusion typically found in the Products/Completed Operations Liability Coverage Part. Its core function is to reinstate coverage for liquor-related liability, but only for specifically listed (scheduled) premises or activities on the endorsement itself. For these scheduled exceptions, the exclusion for "bodily injury" or "property damage" for which an insured may be held liable by reason of 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, is effectively removed. The 2013 revision of this form clarified that the exclusion applies even if claims allege negligence in the supervision, hiring, employment, training, or monitoring of others, or in providing or failing to provide transportation for any person who may be under the influence of alcohol.

Classes of business it applies to

This endorsement is used for businesses with a Products/Completed Operations exposure that may have an incidental liquor liability exposure for specific, defined situations but do not otherwise engage in the business of manufacturing, distributing, selling, serving, or furnishing alcoholic beverages. It is not a substitute for a full Liquor Liability Coverage Form if the exposure is more significant.

Real-world examples:

• A manufacturing company that hosts an annual holiday party for its employees at a designated off-site location where alcohol is served. The company could use CG 29 53 to schedule this specific event to ensure liquor liability coverage under its Products/Completed Operations coverage if an incident were to occur related to the alcohol served at that party.
• A contractor who, upon completion of a large project, hosts a one-time celebratory event for the client and workers on the now-completed site, where alcohol is permitted.
• A business that owns a hall or venue that it occasionally allows others to use for events where those users might bring their own alcohol (BYOB), and the insured business wants to ensure the liquor exclusion does not apply to their potential liability arising from such scheduled BYOB events on their premises.

Special considerations

• This endorsement is specifically for use with the Products/Completed Operations Liability Coverage Part (e.g., CG 00 38). A similar endorsement, CG 21 51, exists for amending the liquor liability exclusion in the Commercial General Liability (CGL) Coverage Form.
• Crucially, the specific premises or activities for which coverage is intended must be clearly described and listed in the Schedule section of the endorsement. If an event or location is not scheduled, the standard liquor exclusion remains in full effect.
• The April 2013 edition of this form, along with other liquor liability forms, included revisions that were generally seen as a clarification and potential narrowing of coverage. For instance, it reinforced that the exclusion applies if causing or contributing to intoxication is any reason for liability, including permitting alcohol to be brought onto the premises for consumption.
• Insureds should be aware that this endorsement does not provide unlimited liquor liability coverage; it only carves back the exclusion for the scheduled items. The limits of liability and other policy terms and conditions still apply.

Key information for agents and underwriters

• Risk Assessment: Agents and underwriters must thoroughly evaluate the nature and frequency of the scheduled premises or activities. This includes understanding the types of events, expected attendance, alcohol serving practices (e.g., professional bartenders vs. self-serve, ID verification), and any loss control measures in place.
• Pricing: The premium impact of adding this endorsement will vary based on the underwriter's assessment of the increased risk associated with the scheduled exceptions. More frequent or higher-risk activities will likely result in a higher premium.
• Coverage Gaps: Agents should counsel insureds that if their involvement with alcohol is more than just occasional or incidental (as scheduled on this endorsement), a dedicated Liquor Liability Coverage Form (e.g., CG 00 33 or CG 00 34) is likely more appropriate to avoid significant coverage gaps.
• Underwriting Guidelines: Underwriters will require detailed information about each scheduled premise or activity. For BYOB situations, underwriters will assess the insured's control over the environment and potential liability. They will also consider the insured's overall risk profile and loss history. The revisions in the 04 13 edition emphasize that even allegations of negligent supervision in the context of alcohol service are subject to the exclusion unless specifically carved back by an endorsement like this for scheduled activities.