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ISO Coverage Form

February 2009

Summary: Insurance Services Office (ISO) has developed a commercial liability umbrella form. The coverage is excess over commercial general liability and automobile liability coverages. The commercial liability umbrella policy, CU 00 01 12 07, provides coverage when aggregate limits of underlying insurancethat is, any policies of insurance listed in the declarations under the schedule of underlying insuranceare exhausted. A self-insured retention applies to exposures not covered by underlying insurance.

The following article is a general overview of the current ISO commercial umbrella liability coverage form. The coverages, exclusions, conditions, and definitions of the form are herein noted and analyzed.

Topics covered:

Coverage A

Coverage A exclusions

Coverage B

Coverage B exclusions

Supplementary payments

Who is an insured

Limits of insurance




Coverage A

1.Insuring Agreement

a.We will pay on behalf of the insured the “ultimate net loss” in excess of the “retained limit” because of “bodily injury” or “property damage” to which this insurance applies. We will have the right and duty to defend the insured against any “suit” seeking damages for such “bodily injury” or “property damage” when the “underlying insurance” does not provide coverage or the limits of “underlying insurance” have been exhausted. When we have no duty to defend, we will have the right to defend, or to participate in the defense of, the insured against any other “suit” seeking damages to which this insurance may apply. However, we will have no duty to defend the insured against any “suit” seeking damages for “bodily injury” or “property damage” to which this insurance does not apply. At our discretion, we may investigate any “occurrence” that may involve this insurance and settle any resultant claim or “suit”, for which we have the duty to defend. But:

(1)The amount we will pay for the “ultimate net loss” is limited as described in Section IIILimits Of Insurance; and

(2)Our right and duty to defend ends when we have used up the applicable limit of insurance in the payment of judgments or settlements under Coverages A or B.

No other obligation or liability to pay sums or perform acts or services is covered unless explicitly provided for under Supplementary Payments Coverages A or B.

b.This insurance applies to “bodily injury” and “property damage” only if:

(1)The “bodily injury” or “property damage” is caused by an “occurrence” that takes place in the “coverage territory”;

(2)The “bodily injury” or “property damage” occurs during the policy period; and

(3)Prior to the policy period, no insured listed under Paragraph 1 of Section IIWho Is An Insured and no “employee” authorized by you to give or receive notice of an “occurrence” or claim, knew that the “bodily injury” or “property damage” had occurred, in whole or in part. If such a listed insured or authorized “employee” knew, prior to the policy period, that the “bodily injury” or “property damage” occurred, then any continuation, change or resumption of such “bodily injury” or “property damage” during or after the policy period will be deemed to have been known prior to the policy period.


The language of this insuring agreement is essentially the same as that of the standard commercial general liability (CGL) coverage form, with a few exceptions in terms.

As an example, under the terms of the umbrella policy, the insurer agrees to pay the ultimate net loss in excess of the retained limit because of bodily injury or property damage to which the insurance applies. “Ultimate net loss” is a defined term on the policy, as is “retained limit”, and both terms are unique to an umbrella policy.

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