What it does
CU 21 07 limits the umbrella's coverage for contractual liability. The umbrella's contractual liability exclusion normally does not apply to "insured contracts"; this endorsement narrows that, so liability the insured assumes under many contracts is not covered above the primary.
Who needs it
Applied by underwriters to accounts with heavy contractual risk transfer, or to follow the same limitation on the underlying CGL.
How it fits the umbrella
ISO umbrella endorsements are listed on the umbrella declarations and change the CU 00 01 coverage form. Many are designed to follow a matching CGL, auto or employers liability endorsement so that the umbrella and the underlying policies respond the same way; when you add the underlying endorsement, ask whether the umbrella needs its counterpart.
Quoting and selling notes
- A contractor with this endorsement may be unable to meet indemnity requirements; check contracts before accepting it.
