Designated Premises Endorsement and Off-Site Risk Exposures

Our insured carries a BOP with the CG 21 44, Designated Premises endorsement. The insured produces food items at his multiple listed locations for sale. The insured is now using marketing representatives and salespeople and doing offsite product demos. Will the designated premises endorsement preclude coverage if a loss occurs during one of these offsite product demos? Do these marketing/sales/product demos fit the definition of “incidental use”? The insured has locations in Maine and New Hampshire.

Maine Subscriber

The problem is that the term “incidental” is not defined on the endorsement. The dictionary states that “incidental” means a chance consequence or something occurring merely by chance. And, the purpose of the endorsement is to convert the CGL form to a more limited form of protection comparable to the old owners, landlords, and tenants policy; it basically nullifies the automatic coverage for new exposures that the CGL form grants. So, based on this, we would say that the endorsement is not going to cover the offsite product demos that the insured does.