What it does

The umbrella automatically treats newly acquired or formed organizations (other than partnerships, joint ventures or LLCs) as named insureds for up to 90 days if no other similar insurance is available. CU 21 04 removes that automatic coverage.

Who needs it

Accounts where the underwriter wants to review every acquisition before covering it.

How it fits the umbrella

The umbrella has its own exclusions that apply whether or not the underlying policies cover the claim, and many ISO umbrella exclusion endorsements mirror a CGL or auto exclusion so that the umbrella does not drop down where the underlying is excluded. When an underlying policy carries an exclusion, check that the umbrella carries the matching CU endorsement, or explain the gap if it does not.

Quoting and selling notes

• Tell the insured to report acquisitions before closing.

Related forms

See CU 24 81.