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Q: I am having a problem with the CGL form (CG 0001 0798) with a carrier. I am asking but how policies should work (or not work).

23 Aug
Questions & Answers

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Q:  The client’s lease calls for “Tenant shall provide Landlord with a Certificate of insurance naming Landlord, Landlord’s lender (if any), and Realty Corporation as additional insureds, provides for a waiver of any right of recovery by way of subrogation against Landlord in the event of any loss, and provides for a thirty (30) day written notice to Landlord prior to cancellation or material change of coverage”.

Of course the standard fire insurance allows for the waiver if in writing before the loss.   Do you think this means  for liability too?   We contacted the GL carrier and they said they don’t endorse a waiver on the GL.  Is there an automatic waiver section in a GL policy similar to the property section?

Any help you can offer is appreciated.

A:  Yes, I do believe that the language you have quoted brings in every line of insurance, including property, auto, liability, work comp, etc.

ISO GL (any edition) does not require the Waiver of Subrogation endorsement CG 24 04.

The CGL Condition #8 – Transfer of Rights of Recovery Against Other To Us in the GL form demands that the Named Insured does nothing AFTER loss to impair the insurer’s rights of subrogation.  Therefore, the Named Insured may waive rights prior to a loss occurring and not violate the policy conditions.

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.

The Business Auto language is the same – the condition # is 5.

The WC policy is a problem and would have to be endorsed and the insured will have a premium charge that could be significant.

If the insured is carrying an Umbrella policy, check the form.  Many standard markets follow the underlying ISO language, but others do not.

I hope this is helpful.

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