My question concerns the liquor liability exposure for a number of both profit and nonprofit social organizations with fully stocked and operated bar operations. We have covered the exposure by including liquor liability coverage form CG0033. The carrier has also included form #CG2150 "amendment of liquor liability exclusion" which seems to exclude liquor liability coverage. Is it appropriate to include both forms?
What is the purpose of the CG2150 endorsement and when should if be used? It seems to be more restrictive then liquor liability coverage exclusion language of the GL form.
California Subscriber
You have correctly analyzed CG 21 50 – Amendment of Liquor Liability Exclusion. This endorsement is indeed more restrictive than the coverage provided in the standard CGL coverage form. This endorsement replaces the coverage that is provided in the standard CGL form. By attaching the endorsement, it is amending the CGL coverage form to remove the coverage from the CGL. The exclusion avoids the use of the phrase "in the business of…" In addition, liability resulting from the intoxication of any person because alcoholic beverages were permitted on the named insured's premises, for consumption on the named insured's premises (BYO), is excluded.
The company is appropriately attaching this endorsement to remove the coverage that is provided by the CGL as it is being replaced by the full liquor liability coverage provided by CG 00 33. If CG 21 50 were not added to the policy, then the insured would have two coverages for liquor liability – that in the CGL form and the coverage of CG 00 33. In event of a loss, both forms would provide primary coverage and contribution would be by equal shares.
Otherwise, the only time CG 21 50 would be attached to a policy is when an insured has no liquor liability exposure and therefore does not want to provide any coverage for liquor liability.