More than five years ago, the Big “I” Virtual University (VU) published an article titled “The CGL and Damage Caused by Pesticides and Herbicides” in response to several member questions about coverage under the ISO CG 22 93 and CG 22 64 endorsements: “Lawn Care Services Coverage” and “Pesticide or Herbicide Applicator Coverage.”
Unfortunately, many people assumed these endorsements were all that was necessary to receive coverage for these operations. But in reality, the endorsements simply removed part of the ISO CGL pollution exclusion f.(1)(d) and didn’t touch CGL exclusions j.(5), j.(6) or l, which focus largely on faulty workmanship.
As a result, the Big “I” national Technical Affairs Committee approached ISO at its annual meeting and asked for modification to clarify the very limited coverage in the endorsements. In the 2013 nationwide CGL program revision, ISO added “Limited Pollution” to the endorsement titles, changing them to “Lawn Care Services – Limited Pollution Coverage” and “Pesticide or Herbicide Applicator – Limited Pollution Coverage,” in order to clearly convey that the only coverage they provide for exposures in these types of operations was some limited pollution coverage.
On May 28, the Professional Independent Insurance Agents Association of Ohio, Inc. association published an article, “Your Landscaping Clients May Not Be Fully Insured,” seeking feedback on an Ohio Department of Agriculture law governing insurance for pesticide applicators.
Does your state have a similar law? Do you fully understand how ISO and carrier endorsements can create E&O exposures for your agency without careful inspection?
Look to the VU to stay informed on industry issues and technical updates critical to both your agency and its clients. Visit the VU online for resources, including the upcoming free webinar on the “Biggest Homeowners Insurance Change in 40 Years Explained.”