1. Forms
2. CX
3. CX-21-10

What the Form Is

The CX 21 10, titled "Limitation Of Coverage To Designated Premises, Project Or Operation," is an endorsement used with Commercial Excess Liability insurance policies. Its primary function is to restrict the policy's coverage to apply only to claims arising from specific locations (premises), particular jobs (projects), or defined activities (operations) that are explicitly listed in the endorsement's schedule. This means that if an incident occurs at a location or as part of a project or operation not listed, the excess liability policy may not provide coverage for that incident. The 2017 edition of this form, in particular, marked a significant narrowing of coverage by removing automatic coverage for operations considered 'necessary or incidental' to the scheduled premises unless those operations are also specifically scheduled.

Classes of Business It Applies To

This endorsement is typically used by insurers in situations where they want to carefully control the scope of excess liability coverage. It can be applied to a wide range of businesses, but is particularly common for:

• Contractors: An insurer might use this endorsement to limit excess coverage to a specific, large construction project rather than all of the contractor's ongoing work. For example, a contractor building a new stadium might have their excess liability coverage restricted to claims arising solely from that stadium project.
• Property Owners/Managers: For an insured that owns or manages multiple properties, an insurer might use this endorsement to provide excess liability coverage for only a select number of those properties. For instance, if a real estate company owns ten buildings but only wants excess coverage for five of them, those five would be listed in the schedule.
• Businesses with Diverse Operations: If a company has multiple distinct types of operations, and the insurer only wants to provide excess coverage for certain ones, this endorsement can be used to specify those covered operations.
• High-Risk Exposures: Insurers may use this form to provide excess coverage for a generally acceptable risk while specifically excluding exposures from a particularly hazardous or unrated part of the insured's operations unless it is specifically scheduled and underwritten.

Special Considerations

• Significant Coverage Limitation: The most critical aspect of this endorsement, especially with the 04 17 edition, is the substantial restriction of coverage. Unlike broader policies, there is no automatic coverage for activities that are merely related or incidental to the scheduled premises if those activities occur off-site or are not themselves scheduled. For example, if a business has its manufacturing plant scheduled, an accident occurring while an employee is incidentally running an errand off-site for that plant might not be covered unless that specific off-premises operational aspect is also scheduled.
• Accurate and Complete Scheduling is Crucial: The insured and their agent must ensure that every premise, project, and operation intended to be covered by the excess liability policy is precisely and comprehensively listed in the endorsement's schedule. Any omission can lead to a significant, uninsured loss.
• Potential Impact on Other Coverages: Some experts have noted that the restrictive nature of this endorsement, when applied, could potentially impact or create gaps with other coverages, such as Hired and Non-Owned Auto Liability, if an incident occurs off the scheduled premises and is not specifically contemplated in the schedule.
• Review Previous Editions: The 04 13 edition was titled "Limitation Of Coverage To Designated Premises, Project Or Operation (formerly – Limitation Of Coverage To Designated Premises Or Project)". The 04 17 revision further clarified and often narrowed the scope of coverage.

Key Information for Agents and Underwriters

• Agents: Must conduct a thorough risk assessment with the client to identify all premises, projects, and operations that require excess liability coverage. Extreme diligence is needed in completing the schedule. Agents should clearly explain the restrictive nature of this endorsement to the insured to manage expectations and avoid potential E&O claims. The implications of the 2017 revisions, particularly the loss of automatic coverage for 'necessary or incidental' operations, must be highlighted.
• Underwriters: This endorsement is a key tool for risk control and precise underwriting. It allows underwriters to define the exact scope of excess liability provided, which can be essential for risks with specific, well-defined exposures they are willing to cover, while excluding others. Pricing considerations will be heavily influenced by what is specifically scheduled. Underwriters should ensure the schedule is clear, unambiguous, and accurately reflects the intended scope of coverage. The form provides separate sections for how it applies to Coverage A (Bodily Injury and Property Damage Liability), Coverage B (Personal and Advertising Injury Liability), and Coverage C (Medical Payments).