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2. CU
3. CU-22-68

What the Form Is

The CU 22 68 is an endorsement to the Insurance Services Office (ISO) Commercial Liability Umbrella Coverage Form. Its primary purpose is to specifically exclude coverage for bodily injury and property damage liability arising from the professional services rendered by or on behalf of blood banks. This means that if a claim arises due to negligence or errors in the professional activities of a blood bank, this endorsement would prevent the umbrella policy from responding to that specific aspect of the claim.

Classes of Business It Applies To

This endorsement is specifically designed for and applies to organizations operating as or in connection with:

• Blood banks
• Blood donation centers
• Blood processing and storage facilities
• Entities involved in the handling, testing, distribution, representation, or warranting of blood or blood products.

Real-world example: A community blood bank that collects, tests, stores, and distributes blood to local hospitals would likely have this endorsement attached to its Commercial Liability Umbrella policy, signifying that its professional medical-related exposures are excluded from the umbrella coverage and should be addressed by a specialized Professional Liability policy.

Special Considerations

• Exclusionary Nature: It is crucial to understand that this is an exclusion endorsement. It removes coverage rather than providing it.
• Professional Services Focus: The exclusion is targeted at liability stemming from the specialized professional services unique to blood banks. This includes not only the handling and distribution of blood products but also professional health services related to blood donation, including acts or omissions by a Doctor of Medicine.
• Underlying Policy Consistency: This endorsement is often used in conjunction with similar exclusions on the underlying primary general liability policy, such as form CG 22 32 (Exclusion - Services Furnished By A Health Care Provider). Ensuring consistency between primary and umbrella exclusions is vital to avoid coverage gaps.
• Bodily Injury and Property Damage: The exclusion applies to claims for both "bodily injury" and "property damage" that arise from the described professional services.

Real-world example: If a patient contracts a disease from a blood transfusion due to improper screening by a blood bank, and sues the blood bank for bodily injury, the CU 22 68 endorsement on the blood bank's umbrella policy would likely exclude coverage for this claim under the umbrella, as it arises from their professional services.

Key Information for Agents and Underwriters

• Risk Assessment: For underwriters, the presence of a blood bank's professional services exposure is a significant risk. This endorsement clarifies that the umbrella policy is not intended to cover this specialized professional liability. Underwriters should confirm that the insured has separate, appropriate Professional Liability (Errors & Omissions) coverage for these exposures.
• Identifying Coverage Gaps: Agents must counsel insureds in the blood bank industry about this exclusion. It is imperative to highlight that their professional liability is not covered by the standard umbrella policy with this endorsement and to recommend or secure specific Professional Liability coverage.
• Pricing Implications: While this endorsement carves out a significant exposure, the overall umbrella premium will still reflect the other, non-excluded risks the insured faces. The absence of this professional liability coverage under the umbrella should be a factor in the pricing and risk assessment of the standalone Professional Liability policy.
• Coordination of Coverage: It is essential to review the underlying primary liability policies to ensure that exclusions are consistent. If an underlying policy (e.g., General Liability with form CG 22 32 attached) excludes these professional services, the CU 22 68 on the umbrella ensures that the umbrella follows form and does not inadvertently pick up coverage that was excluded below.