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Insuring Trusts and Volunteers in Liability Coverage Forms

Author: Chris Boggs

There is an entire generation of insurance agents who are totally unaware that insured status has not always been extended to Trusts and volunteer workers in the commercial general liability (CGL) policy. After all, these entities and individuals were first granted insured status near the turn of the century, way back in the 2001 edition of the CGL.

In 2001, Trusts became a “You" or named insured option and volunteers were added to the list of automatic insureds (included with employees). But these additions initially applied only to the CGL forms (CG 00 01 and CG 00 02).

Largely, extension of insured status to Trusts and volunteers remains exclusive to the CGL. Only the CG 00 65-Electronic Data Liability Coverage Form includes Trusts as a named insured option and volunteers as automatic insured. The only other forms that address either of these are the Liquor Liability coverage forms (CG 00 33 and CG 00 34) and the Product Withdrawal Coverage Form (CG 00 66). All these of these forms include Trusts as a named insured option; but none of these forms automatically extend insured status to volunteers.

Insurance Services Office's (ISO's) most recent multi-state filing addresses some of these “deficiencies" surrounding protection for Trusts and volunteer workers. In its December 2019 filing, ISO released new endorsements allowing:

  • Named Insured status to be extended to Trusts when a Trust is designated as a Named Insured in the:
    • Products/Completed Operations Liability Coverage Part;
    • Pollution Liability Coverage Part – Designated Sites;
    • Pollution Liability Limited Coverage Part – Designated Sites; and
    • Underground Storage Tank Policy – Designated Tanks.
  • Additional insured status to be extended to volunteer workers in the:
    • Liquor Liability Coverage Part;
    • Products/Completed Operations Coverage Part;
    • Pollution Liability Coverage Part; and
    •  Underground Storage Tank Policy.

Five new optional endorsements were created to accomplish these objectives. One new endorsement addresses protection for trusts and the remaining four apply to volunteers:

  • CG 34 05 Additional Insured – Trusts amends the Who Is An Insured provisions to provide insured status to Trusts that are designated as Named Insureds. Additionally, it automatically includes trustees of the named trust as insureds. This endorsement is intended for use with four coverage forms, the: Products/Completed Operations Liability Coverage Part, the Pollution Liability Coverage Part, the Pollution Liability Limited Coverage Part, and the Underground Storage Tank Policy.
  • CG 34 06 Additional Insured – Volunteer Workers extends additional insured status to volunteer workers, but only while performing duties related to the conduct of the insured's business. This endorsement is for use with the two Liquor Liability Coverage Forms (CG 00 33 and CG 00 34). (Remember, the Liquor Liability forms already allow coverage for Trusts.)
  • CG 34 07 Additional Insured – Volunteer Workers extends additional insured status to volunteer workers, but only while performing duties related to the conduct of the insured's business. The CG 34 07 is intended for use with both Products/Completed Operations Liability Coverage Forms (CG 00 37 and CG 00 38).
  • CG 34 08 Additional Insured – Volunteer Workers extends additional insured status to volunteer workers, but only while performing duties related to the conduct of the insured's business. This endorsement is for use with the Pollution Liability Coverage Form – Designated Sites (CG 00 39).
  • CG 34 09 Additional Insured – Volunteer Workers extends additional insured status to volunteer workers, but only while performing duties related to the conduct of the insured's business. This version is for use with Pollution Liability Limited Coverage Form Designated Sites (CG 00 40), and the Underground Storage Tank Policy Designated Tanks (CG 00 42) coverage form.

Who is an Insured

Insured status is important. Knowing who is and who isn't an insured is necessary. Agents should never assume that status as an insured in one liability coverage form applies to all other forms. ISO, in this most recent filing, has given agents tools to fix gaps that could not be fixed previously.

Articles on ISO"s Multi-State Filings

The VU is slowly digging through ISO's 2019 multi-state filings. Other articles on these changes are available from these links:

Last Updated: January 31, 2020

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