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.
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.
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.
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.
- workers compensation,
- vehicle insurance,
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.
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.