Commercial General Liability Conditions - Section 4
- Commercial General Liability Coverage Form

Read the Commercial General Liability Conditions - Section 4 - Commercial General Liability Coverage Form (CG 00 01 04 13)

Commercial General Liability Conditions - Section 4 - Commercial General Liability Coverage Form

The ISO Commercial General Liability Conditions - Section 4 - Commercial General Liability Coverage Form is a part of the Commercial General Liability Coverage Form. If you have a general liability policy, you should at least have a basic understanding of what, where and who is covered - what, where and who is excluded and other important language in the Commercial General Liability Conditions - Section 4 - Commercial General Liability Coverage Form. The section starts below here:

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Various provisions in this policy restrict coverage. Read the entire policy carefully to determine rights, duties and what is and is not covered.

Throughout this policy the words "you" and "your" refer to the Named Insured shown in the Declarations, and any other person or organization qualifying as a Named Insured under this policy. The words "we", "us" and "our" refer to the company providing this insurance.

The word "insured" means any person or organization qualifying as such under Section II - Who Is An Insured.

Other words and phrases that appear in quotation marks have special meaning. Refer to Section V - Definitions.

SECTION IV - COMMERCIAL GENERAL LIABILITY CONDITIONS

1. Bankruptcy

Bankruptcy or insolvency of the insured or of the insured's estate will not relieve us of our obligations under this Coverage Part.

2. Duties In The Event Of Occurrence, Offense, Claim Or Suit

• a. You must see to it that we are notified as soon as practicable of an "occurrence" or an offense which may result in a claim. To the extent possible, notice should include:
  1. How, when and where the "occurrence" or offense took place;
  2. The names and addresses of any injured persons and witnesses; and
  3. The nature and location of any injury or damage arising out of the "occurrence" or offense.
• b. If a claim is made or "suit" is brought against any insured, you must:
  1. Immediately record the specifics of the claim or "suit" and the date received; and
  2. Notify us as soon as practicable. You must see to it that we receive written notice of the claim or "suit" as soon as practicable.
• c. You and any other involved insured must:
  1. Immediately send us copies of any demands, notices, summonses or legal papers received in connection with the claim or "suit";
  2. Authorize us to obtain records and other information;
  3. Cooperate with us in the investigation or settlement of the claim or defense against the "suit"; and
  4. Assist us, upon our request, in the enforcement of any right against any person or organization which may be liable to the insured because of injury or damage to which this insurance may also apply.
• d. No insured will, except at that insured's own cost, voluntarily make a payment, assume any obligation, or incur any expense, other than for first aid, without our consent.

3. Legal Action Against Us

No person or organization has a right under this Coverage Part:

• a. To join us as a party or otherwise bring us into a "suit" asking for damages from an insured; or
• b. To sue us on this Coverage Part unless all of its terms have been fully complied with.

A person or organization may sue us to recover on an agreed settlement or on a final judgment against an insured; but we will not be liable for damages that are not payable under the terms of this Coverage Part or that are in excess of the applicable limit of insurance. An agreed settlement means a settlement and release of liability signed by us, the insured and the claimant or the claimant's legal representative.

4. Other Insurance

If other valid and collectible insurance is available to the insured for a loss we cover under Coverages A or B of this Coverage Part, our obligations are limited as follows:

a. Primary Insurance

This insurance is primary except when Paragraph b. below applies. If this insurance is primary, our obligations are not affected unless any of the other insurance is also primary. Then, we will share with all that other insurance by the method described in Paragraph c. below.

b. Excess Insurance

1. This insurance is excess over:
   • (a) Any of the other insurance, whether primary, excess, contingent or on any other basis:
     1. That is Fire, Extended Coverage, Builder's Risk, Installation Risk or similar coverage for "your work";
     2. That is Fire insurance for premises rented to you or temporarily occupied by you with permission of the owner;
     3. That is insurance purchased by you to cover your liability as a tenant for "property damage" to premises rented to you or temporarily occupied by you with permission of the owner; or
     4. If the loss arises out of the maintenance or use of aircraft, "autos" or watercraft to the extent not subject to Exclusion g. of Section I - Coverage A - Bodily Injury And Property Damage Liability.
   • (b) Any other primary insurance available to you covering liability for damages arising out of the premises or operations, or the products and completed operations, for which you have been added as an additional insured.
2. When this insurance is excess, we will have no duty under Coverages A or B to defend the insured against any "suit" if any other insurer has a duty to defend the insured against that "suit". If no other insurer defends, we will undertake to do so, but we will be entitled to the insured's rights against all those other insurers.
3. When this insurance is excess over other insurance, we will pay only our share of the amount of the loss, if any, that exceeds the sum of:
   • (a) The total amount that all such other insurance would pay for the loss in the absence of this insurance; and
   • (b) The total of all deductible and selfinsured amounts under all that other insurance.
4. We will share the remaining loss, if any, with any other insurance that is not described in this Excess Insurance provision and was not bought specifically to apply in excess of the Limits of Insurance shown in the Declarations of this Coverage Part.

c. Method Of Sharing

If all of the other insurance permits contribution by equal shares, we will follow this method also. Under this approach each insurer contributes equal amounts until it has paid its applicable limit of insurance or none of the loss remains, whichever comes first.

If any of the other insurance does not permit contribution by equal shares, we will contribute by limits. Under this method, each insurer's share is based on the ratio of its applicable limit of insurance to the total applicable limits of insurance of all insurers.

5. Premium Audit

• a. We will compute all premiums for this Coverage Part in accordance with our rules and rates.
• b. Premium shown in this Coverage Part as advance premium is a deposit premium only. At the close of each audit period we will compute the earned premium for that period and send notice to the first Named Insured. The due date for audit and retrospective premiums is the date shown as the due date on the bill. If the sum of the advance and audit premiums paid for the policy period is greater than the earned premium, we will return the excess to the first Named Insured.
• c. The first Named Insured must keep records of the information we need for premium computation, and send us copies at such times as we may request.

6. Representations

By accepting this policy, you agree:

• a. The statements in the Declarations are accurate and complete;
• b. Those statements are based upon representations you made to us; and
• c. We have issued this policy in reliance upon your representations.

7. Separation Of Insureds

Except with respect to the Limits of Insurance, and any rights or duties specifically assigned in this Coverage Part to the first Named Insured, this insurance applies:

• a. As if each Named Insured were the only Named Insured; and
• b. Separately to each insured against whom claim is made or "suit" is brought.

8. Transfer Of Rights Of Recovery Against Others To Us

If the insured has rights to recover all or part of any payment we have made under this Coverage Part, those rights are transferred to us. The insured must do nothing after loss to impair them.

At our request, the insured will bring "suit" or transfer those rights to us and help us enforce them.

9. When We Do Not Renew

If we decide not to renew this Coverage Part, we will mail or deliver to the first Named Insured shown in the Declarations written notice of the nonrenewal not less than 30 days before the expiration date.

If notice is mailed, proof of mailing will be sufficient proof of notice.

More On ISO Insurance Forms

You can download a copy of this form here: Commercial General Liability Coverage Form.

You can find more ISO insurance coverage forms here:

• Commercial General Liability Coverage Form
  1. Section I - Coverages
  2. Section II - Who Is An Insured
  3. Section III - Limits Of Insurance
  4. Section IV - Commercial General Liability Conditions
  5. Section V - Defintions

Commercial General Liability Conditions - Section 4 - Commercial General Liability Coverage Form - The Bottom Line

We hope this article on the Commercial General Liability Conditions - Section 4 - Commercial General Liability Coverage Form has been informative. Because ISO forms are used by many insurance companies, a lot of the language they contain has already been by interpreted by the courts. Meanings have been established for specific words and phrases which can make claim settlements and litigation easier.