Each insurance company develops and modifies its own version of the Insurance Services Office (ISO) Advisory CU DS 01-Commercial Liability Umbrella Declarations to meet its specific needs and purposes.
The entries usually found on any declarations include the following:
POLICY NUMBER, COMPANY NAME, AND PRODUCER NAME AREAS
These sections are at or near the top of the first page of CU DS 01-Commercial Liability Umbrella Declarations. The policy number is also usually near the top. The name of the insurance company that provides coverage and the name of the insurance agent that produces the business are entered in the spaces provided. The insurance company and producer’s mailing addresses or other identifying information may also appear in these spaces.
NAMED INSURED INFORMATION
This section of the sample declarations form includes the following information:
- Named insured – Note: There can be multiple named insureds and the order in which they are listed is very important. The first named insured is treated differently than any other insured named. It pays the premium and also receives return premiums. It is also the only insured that receives notices of cancellation and other correspondence.
- Mailing address – This is the address where the insurance company sends cancellations, bills and other correspondence.
- Policy period is expressed as month, day, and year commencing at 12:01 A.M. at the named insured’s mailing address.
In this section, the insurance company agrees to insure the named insured for the coverage the applicable coverage form provides subject to all its terms and conditions. This is in return for the named insured paying the premium.
LIMITS OF INSURANCE
This section contains three specific limits of insurance and includes two additional spaces for any other coverage added.
Each Occurrence Limit (Liability Coverage) – This is the most paid for any one covered loss in any one occurrence, regardless of the number of claims as a result of that occurrence.
Personal And Advertising Injury Limit (Any one person or organization) – This is the most paid for all covered claims due to personal and advertising injury to a specific person or organization.
Aggregate Limit (Liability Coverage) (except with respect to covered autos) – This is the most paid in the aggregate for all losses for Coverage A, Bodily Injury and Property Damage and Coverage B, Personal and Advertising Injury within the specified policy period. This limit includes the products-completed operations hazard but does not apply to auto losses.
Other Limits – Entries in these spaces could represent sub-limits for other lines of coverage such as watercraft, aircraft, employee benefits liability, or other coverages.
DESCRIPTION OF BUSINESS
The form of business is used in Section II-Who Is An Insured to determine who an insured is. The forms of business are:
- Joint Venture
- Limited Liability Company
- Organization other than the above (except Individual), including a corporation
Note: When there is more than one named insured, there can be more than one form of business.
A description of the insured business can be entered in the space provided. The description is provided only for information purposes and does not affect the coverage provided.
ALL PREMISES YOU OWN, RENT OR OCCUPY
The location number and location address for all premises the named insured owns, rents, or occupies are entered in the spaces provided. If the space is inadequate to list all locations, the schedule should continue on a separate endorsement. The location number is useful for quick reference as well as for rating purposes. Note: Coverage is not restricted to only the locations listed.
This section displays the underlying premiums and the umbrella premium. Each insurance company determines the amount of information in this section. If the umbrella is subject to audit, the audit period that applies is entered.
This section lists any endorsements included at issuance. Subsequent endorsements issued after inception obviously cannot be listed but are included by inference.
This section of the advisory declarations contains the information on the self-insured retention and the underlying coverages and their limits.
Self-Insured Retention – If a coverage the umbrella provides is not insured by any underlying coverage, the named insured must pay the amount of the self-insured retention entered in the space provided before the umbrella responds. This keeps the umbrella from providing first-dollar coverage. Note: The self-insured retention does not apply if underlying coverage applies to the loss.
Schedule of Underlying Insurance – The underlying coverages and limits provided are entered in the spaces provided and must be maintained in full force and effect during the umbrella policy period. If they are not, the umbrella coverage still responds as if they are.
Under the Employers Liability, Commercial General Liability and Commercial Auto Liability sections, the name of the underlying insurance company, the policy number, the policy period, and the minimum limits are entered in the spaces provided. The same information must be provided for any other coverage provided.
Note: Promptly informing the insurance company of any changes in this information cannot be emphasized enough.
The section of the advisory declarations states that the declarations, the common policy conditions, the coverage form (or forms), and any endorsements complete the policy number referred to above.
This section has spaces for the authorized representative’s countersignature and date. The insurance company’s officers’ facsimile signatures may also appear in this section, on the first page of the coverage form, or elsewhere at the insurance company’s option.