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What is a CGL Form?

What is a CGL Form?

What is a CGL Form? – Even here, the CGL policies named insured provision is

limited to 90 days for newly acquired entities. These extended words could be

appropriate for many different policies but

are most often added to liability and umbrella forms.


CGL Form –

(Extended Notice of Cancellation or Non-Renewal)

This is a common question of concern for most policyholders, but especially

the trucking or commercial industry. This is because there is a lot at stake.

Unlike a personal insurance policy, a commercial or trucker’s policy includes

the live hood of the driver. The truck is a business so, it must be insured on that basis.

It has many components and layers, and each should be reviewed for exposure and

liability risks. The extended Notice of Cancellation or non-renewal form is an endorsement

that is used to modify a policy’s cancellation clause.


What is a CGL Form?


Advanced Notice – CGL Policy

This is so that a 60-day notice must be given prior to the insured in the

event a policy is canceled or nonrenewed. This could be important since

most policies only require 10 to 30 days’ notice. This is may

not be sufficient time for adequate remarking of the policy.

So, from a sales perspective, this piece of business would need to

be worked prior to 10 -to 30 days in advance. Also, from a consumer’s

perspective, it is a nice window of advance notification, that is before

the 10-30-day window, for cancellation or non-renewal notice.

This is because it allows plenty of time to shop and compare

rates before the current policy expire or cancels out.


CGL – Broadened Notice of Cancellation or Nonrenewal?

This broaden form extends notification beyond the name insured.

Meaning, any additional insureds listed on the policy would also be notified of the policy status.

This helps preserves the policy lifespan in case the named insured is not reachable.

Also, it protects any additional insureds on the policy from potential

loss or future claims.


Common Policy?

So, it is a common policy condition form that

is an endorsement. It is used to modify the common policy clause,

where only the name insured is responsible for being contacted and or notified.

This endorsement will also require the insurance company to contact all additional

insureds listed on the policy. So, if you are an additional insured

on a policy, make sure that you inquire about this endorsement.


Notice of Material Change on Your CGL Policy

There is an endorsement that requires an insurance company to notify insured in

writing any material changes or premium increases. This notice must be at

least 60 days prior to the renewal date. As with the cancellation endorsement,

this type of notification will ensure that the proper remarketing time is provided if needed.


Modified Examination of Records?

With most standard insurance policies, an insurance company can examine and audit

a truckers’ records for up to 3 years. The kicker is, after the policy expiration

date. So, if you think about it, it can possibly cause a problem.

For example, what if an insurance company excises this option and goes

back the full 3 years to assess any additional charges.


Unfair Balance?

You can see where this can seem unfair. Such charges could prove extremely

difficult to collect and may create bad feelings with many insurers.

So, this endorsement restricts this audit period to 1 year from the expiration date

instead of 3 years. Those 2 additional years help a lot, not just in the

operations of a business, but in the mindsets of the business owners,

or truckers in this case.


Records of Claims for your CGL Policy

This is an addition to a policy or endorsement. It will assure that a trucker is

provided with information concerning claims payments and expenses under the

policy. It will allow an insured the right to request details of the clam

activities from their insurance company. This request can be asked at any time as well.

This could be important for critical lines of business where frequent claims

can be made or occur.

For example,

  • workers compensation,
  • vehicle insurance,
  • etc.


Unintentional Failure to Disclose on Policy?

This add-on or policy endorsement will ensure coverage cannot be denied

for claims resulting from undisclosed hazards. Think about this statement.

This is important on so many levels. First, because many standards policies exclude coverage

if an insures does not disclose all hazards. This may also exist at the inception

of the policy, even if it was unintentional.

This is most commonly seen in general liability and umbrella forms.


Delayed Notice of Occurrence on your Policy

Many policies will contain a loss reported clause. In this loss reported clause,

it will state that losses must be reported to the insurance company when the

insured becomes aware of a loss or potential loss. This can be amended to

reduce the change of a claim denial because, an employee fails to report a

claim to the appropriate company officer, all in a timely manner.


CGL – Loss Adjuster Expenses

In concluding with this endorsement list, all property, and inland marine forms

contain provisions that will lay out the duties required of an insured.

These duties are to be fulfilled in the case of a loss. Often, an insured may incur

a variety of expenses to fulfill these duties. This may not be covered,

however, by the responding policy. So, common examples of uncovered expenses might

include costs for attorneys or accountants to verify settlement figures,

engineering services if there is a question as to how a loss resulted.


CGL Illustration

Other examples include 

  • hard costs related to preparation, 
  • copying and mailing of proof of loss requirements, 
  • personnel costs associated with the determination of loss values, 
  • and fees for independent appraisers to verify insurable loss values.


Even though policies may provide reimbursement for some of these

exposures, it may be necessary to attach an additional endorsement

to provide broader loss adjustment expenses protection.

This is such an invaluable endorsement, they all are. All these endorsements

serve different purposes and act as the illustration to the

proper coverage and duty role of each party involved.

Make sure to properly protect your business, no matter if you have a plumbing business for sale or

an insurance agency.

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