General Liability Coverage at Designated Premises

CG 21 44, limitation of coverage to designated premises or projects, is an endorsement to the CGL form. We would like to understand the intent of this endorsement. Is this an attempt to cover liability claims only at the designated premises? My understanding of CG 21 44 is that it provides coverage arising out of the ownership, maintenance, or use of the premises, and not necessarily just premises only liability coverage. In other words, if the insured's product is manufactured at the designated premises, the insured still has products coverage.

One more thing, does the endorsement eliminate coverage for employees working off-premises?

Georgia Subscriber

The purpose of this endorsement is to limit coverage to the premises or projects specifically designated in the endorsement. Coverage is limited to the premises as described and to operations necessary or incidental to those premises. Now, what is necessary or incidental is not defined and can be open to interpretation on a case-by-case basis. And, there is no exclusion when it comes to products or products/completed operations exposures. So, if it can be shown that the products manufactured at the designated premises are the result of necessary or incidental operations, the endorsement will provide coverage for the insured for a claim. It just depends on the interpretation of “necessary or incidental” in relation to the particular claims situation.

The same can be said about the off-premises work. If that work is necessary or incidental to the designated premises, CG 21 44 will provide coverage for a claim.