New CGL wordings

Many of the large Canadian P&C insurance companies announced recently that they would be adpoting the new version of the Insurance Bureau of Canada's (IBC) "advisory" standard form of the commercial general liability (CGL) policy effective January 2006.
This new policy wording will replace the current version which dates back to 1986.

Based on the official "COMPARISON BETWEEN CURRENT AND REVISED FORM" , change highlights - commercial general liabiltiy policy - IBC 2100, there are 23 changes on list.

Followings are some examples.

* The new CGL policy will incorporate some new exclusions, some of which were previously added by endorsements, such as asbestos, fungi or spores, data terrorism and abuse.

* some exclusions, definitions and conditions have been changed to reflect current trends in technology, jurisprudence and underwriting concerns.

* The new CGL policy imposes a new "general aggregate" limit which applies to premises and operations losses, personal and advertising injury and medical expenses. In the old CGL forms there was no general aggregate limit for such losses. This new general aggregate limit will apply separately from the current products/completed operations aggregate limit. The general aggregate limit does not apply to tenants' legal liability coverage which is provided on a limit "per premises" whith no aggregate.

* Advertising liability coverage is now included for insureds who are not in the business of advertising, broadcasting, publishing or telecasting. Coverage is clarified regarding the use of the internet and customers' websites.

* The number of definitions has been increased.

* The pollution exclusion has been amended.

* The definition of insureds has been expanded to include "volunteer workers", "leased workers", and "temporary workers".

* "Duty to defend" has been clarified to state that none exists if no coverage exists under the policy.

* A "known damage or injury" exception to coverage has been added.

* " Concurrent causation" language has been added to key exclusions (automobile, asbestos, fungi or spores, nuclear, terrorism, war).

* "Contractual liability" coverage language has been changed to exclude coverage for the "sole negligence" of the indemnified party (or additional insured).

* Definition of "insured contract" has been revised with respect to lease of premises.