1. Forms
2. CG
3. CG-DS-01

Commercial General Liability Declarations (CG DS 01)

The Commercial General Liability Declarations (CG DS 01) is a standard Insurance Services Office (ISO) form that serves as the "cover page" or "summary page" for a Commercial General Liability (CGL) policy. Its primary purpose is to personalize the CGL policy by detailing the specific information unique to the insured. This form is crucial as it outlines key aspects of the coverage being provided. It typically includes:

• The Named Insured and their mailing address.
• The policy period (inception and expiration dates).
• The limits of insurance for various coverages (e.g., Each Occurrence, General Aggregate, Products/Completed Operations Aggregate, Personal & Advertising Injury, Damage to Premises Rented to You, and Medical Expense).
• A description of the insured's business.
• The form of business (e.g., individual, partnership, corporation).
• A list of all premises owned, rented, or occupied by the insured.
• The premium for the policy.
• A list of forms and endorsements that apply to the policy.
• If it's a claims-made policy (CG 00 02), the retroactive date will also be shown.

The CG DS 01 is used in conjunction with a CGL coverage form, such as CG 00 01 (Occurrence) or CG 00 02 (Claims-Made), and various endorsements to create the complete CGL policy. It essentially provides a snapshot of the who, what, when, where, and how much of the CGL coverage.

Classes of Business It Applies To

The CG DS 01 is applicable to a vast array of commercial enterprises, as the CGL coverage itself is designed for a wide range of businesses. Since the CGL policy provides coverage for bodily injury, property damage, personal injury, and advertising injury arising out of the insured's premises, operations, products, and completed operations, this declarations page will be found on policies for:

• Retail Stores: A local hardware store, a clothing boutique, or a bookstore would all have a CGL policy with a CG DS 01. For example, if a customer slips and falls in the hardware store, the CGL policy, as summarized by the CG DS 01, would respond.
• Contractors: Plumbers, electricians, carpenters, and general contractors rely on CGL coverage. The CG DS 01 would specify their business operations and applicable limits. For instance, if a plumber's faulty installation causes water damage to a client's property, this would be an operations exposure.
• Manufacturing Companies: Businesses that produce goods, from small workshops to large factories, need CGL for products liability. The CG DS 01 would show the Products/Completed Operations Aggregate limit. For example, if a manufactured toy has a defect that injures a child, the products liability coverage detailed on the declarations would be triggered.
• Real Estate Owners and Managers: Owners of office buildings, apartment complexes, and shopping centers use CGL for premises liability. The CG DS 01 would list the covered locations. For example, if a tenant is injured due to a poorly maintained common area in an apartment building.
• Service Businesses: Consultants, marketing agencies, and IT service providers also need CGL. While they might also have professional liability, CGL covers their general business exposures. For example, if a client visiting a marketing agency's office trips over a loose carpet and breaks their leg.
• Restaurants and Hospitality: These businesses have significant premises and operations exposures, as well as potential products liability from the food they serve. The CG DS 01 will reflect these varied risks.
• Wholesalers and Distributors: Similar to manufacturers, these businesses have products liability exposures for the goods they handle and distribute.

Essentially, any business that has interactions with the public, owns or leases premises, or sells products/services could have a CGL policy fronted by a CG DS 01.

Special Considerations

While the CG DS 01 is a standard declarations page, there are important points to consider:

• Accuracy is Paramount: The information on the declarations page, such as the named insured, business description, and list of premises, forms the basis of the insurance agreement. Misrepresentations, even unintentional, could potentially lead to coverage disputes or denial of claims if the misrepresentation is material to the risk. For example, failing to list a high-risk location where the business operates could be problematic.
• Form of Business: The "Form of Business" entry (e.g., individual, partnership, LLC, corporation) is critical because it directly impacts who is considered an "Insured" under Section II of the CGL policy. For example, for an individual, the named insured and their spouse are insureds with respect to the conduct of the business. For a partnership, the partners and their spouses are insureds.
• Limits of Insurance: The limits shown on the CG DS 01 are the maximum amounts the insurer will pay for covered claims. It's crucial that these limits are adequate for the insured's potential exposures. Agents should discuss these limits carefully with clients.
• Retroactive Date (for Claims-Made Policies): If the policy is a claims-made policy (using form CG 00 02), the CG DS 01 will show a retroactive date. This date is critical because claims arising from occurrences before this date are generally not covered, even if the claim is made during the policy period.
• Listing of Premises: The declarations page includes a section to list all premises the insured owns, rents, or occupies. While an unendorsed CGL policy typically provides coverage for unnamed locations (within the coverage territory), failing to disclose all locations could be considered a misrepresentation if it's material to the underwriting of the risk. It is best practice to ensure all operational locations are accurately listed.
• Relationship to Coverage Form and Endorsements: The CG DS 01 does not provide coverage itself; it merely summarizes the specifics of the coverage provided by the attached CGL coverage form (CG 00 01 or CG 00 02) and any endorsements. The actual terms, conditions, exclusions, and definitions are found within those documents.
• Edition Dates: Insurance forms are periodically updated by ISO. The edition date of the CG DS 01 (and all other forms in the policy) is important as it indicates which version of the form is being used and can have implications for coverage.

Key Information for Agents and Underwriters

The CG DS 01 is a foundational document for both agents and underwriters in the CGL placement process:

• Risk Assessment: For underwriters, the information on the declarations (business description, locations, form of business) is the starting point for assessing the risk. The "Description of Business" helps the underwriter classify the risk correctly, which is crucial for rating. For example, a "restaurant" will have different inherent exposures than a "software developer."
• Pricing/Rating: The classification of the business, along with exposure bases (like sales, payroll, or area, which might be detailed on supplemental declarations or worksheets referenced on the CG DS 01), and the selected limits directly influence the premium calculation.
• Identifying Coverage Gaps: Agents should use the declarations to review with the insured if the stated information accurately reflects their current operations and if the limits are sufficient. For instance, if a business has expanded to a new, unlisted location, or started a new, higher-risk operation not reflected in the "Business Description," this is a potential gap.
• Underwriting Guidelines: Company-specific underwriting guidelines will dictate the acceptability of certain risks, required limits, and necessary endorsements. The CG DS 01 provides the initial data points to compare against these guidelines. For example, an underwriter might have specific requirements for a contracting risk regarding the types of operations performed or the need for specific additional insured endorsements.
• Verification of Named Insured: Ensuring the Named Insured is correctly and fully identified is critical. This affects who has rights and duties under the policy, including who can make changes, cancel the policy, and receive claim payments. For complex business structures (e.g., multiple entities, joint ventures), this needs careful attention.
• Endorsement Checklist: The declarations page often lists the endorsements attached to the policy. Agents and underwriters must ensure all necessary endorsements (e.g., additional insured endorsements, exclusions for specific exposures like professional services if not covered elsewhere, modifications to coverage territory) are correctly identified and attached.
• Products/Completed Operations: The separate aggregate limit for Products/Completed Operations shown on the CG DS 01 is a key underwriting and coverage consideration, especially for manufacturers, contractors, and restaurants. Underwriters will assess the potential for claims arising after a product is sold or a job is completed.

In summary, the CG DS 01 is more than just an introductory page; it's a vital component that defines the scope and specifics of the CGL coverage, guiding both the insured's understanding and the insurer's obligations.