What it does
The umbrella excludes liquor liability for insureds in the alcohol business, except to the extent valid underlying insurance for the liquor risk exists. CU 21 13 amends that exclusion, and CU 21 14 amends it with an exception for scheduled premises or activities.
Who needs it
Restaurants, bars, caterers, event venues and organizations hosting events where alcohol is served or sold.
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
- Schedule the liquor liability policy as underlying insurance if the client buys one.
- Ask about BYOB and special events.
