COMMERCIAL GENERAL LIABILITY COVERAGE PART

A.  The following exclusion is added to Paragraph 2. Exclusions of Section I – Coverage A – Bodily Injury And Property Damage Liability:

This insurance does not apply to "bodily injury" or "property damage" arising out of: 

a. The actual, alleged or threatened assault or battery of any person committed by anyone;
b. Any act or omission by any insured in connection with the prevention or suppression of an assault
or battery; or
c. Negligence or other wrongdoing in: 
(1) Hiring;
(2) Training;
(3) Employment;
(4) Investigation; 
(5) Supervision; 
(6) Monitoring;
(7) Reporting to the proper authorities, or failure to so report; or 
(8) Retention; 
of a person for whom any insured is or ever was legally responsible and whose conduct would be
excluded by Paragraph a. or b.above. 

B.  The following exclusion is added to Paragraph 2. Exclusions of Section I – Coverage B – Personal And Advertising Injury Liability:

This insurance does not apply to "personal and advertising injury" arising out of: 

a. The actual, alleged or threatened assault or battery of any person committed by anyone;
b. Any act or omission by any insured in connection with the prevention or suppression of an assault or
battery; or
c. Negligence or other wrongdoing in: 
(1) Hiring;
(2) Training;
(3) Employment;
(4) Investigation; 
(5) Supervision; 
(6) Monitoring;
(7) Reporting to the proper authorities, or failure to so report; or 
(8) Retention; 
of a person for whom any insured is or ever was legally responsible and whose conduct would be
excluded by Paragraph a. or b.above.

CG 35 09 01 26:

This endorsement modifies insurance provided under the following:

LIQUOR LIABILITY COVERAGE PART

A.  The following exclusion is added to Paragraph 2. Exclusions of Section I – Liquor Liability Coverage: 

This insurance does not apply to "injury" arising out of:

a. The actual, alleged or threatened assault or battery of any person committed by anyone;
b. Any act or omission by any insured in connection with the prevention or suppression of an assault
or battery; or
c. Negligence or other wrongdoing in: 
(1) Hiring;
(2) Training;
(3) Employment;
(4) Investigation; 
(5) Supervision; 
(6) Monitoring;
(7) Reporting to the proper authorities, or failure to so report; or 
(8) Retention; 
of a person for whom any insured is or ever was legally responsible and whose conduct would be
excluded by Paragraph a. or b.above. 

Analysis:

The CG 40 51 and CG 35 09 are similar in that both forms are adding an assault and battery exclusion, but there are necessary differences in how the exclusion is worded in each form so that the exclusion is properly applied to the coverages provided by the coverage form to which it amends. The CG 35 09 applies to the Liquor Liability Coverage Part only, and as such it excludes coverage for "injury" arising out of assault and battery arising out of three areas in connection with assault or battery: 1) the actual, alleged or threatened assault or battery committed by anyone; 2) any act or omission by any insured in connection with the prevention or suppression of assault or battery; or 3) negligence or other wrongdoing in hiring, training, employment, investigation, supervision, monitoring, reporting or failing to report to the proper authorities, or the retention of a person for whom any insured is or ever was legally responsible and whose conduct would be excluded under the endorsement.

Part A of the CG 40 51 endorsement excludes bodily injury or property damage liability arising out of these same three areas in connection with assault or battery as listed above: 1) the actual, alleged or threatened assault or battery committed by anyone; 2) any act or omission by any insured in connection with the prevention or suppression of assault or battery; or 3) negligence or other wrongdoing in hiring, training, employment, investigation, supervision, monitoring, reporting or failing to report to the proper authorities, or the retention of a person for whom any insured is or ever was legally responsible and whose conduct would be excluded under the endorsement. Note that the CG 40 51 excludes "bodily injury" and "property damage" and applies to the Commercial General Liability Coverage Part, while the CG 35 09 applies only to the Liquor Liability Coverage Part and excludes "injury", not "property damage".

Part B of the CG 40 51 endorsement applies the same exclusions to personal and advertising injury liability.

Note that in both endorsements, not only are the acts of assault or battery excluded, but also any attempt by an insured to prevent or suppress such acts is excluded as well.

Neither of the terms assault or battery are defined in either form; as such, they will be determined based on the common, ordinary meaning found in a standard dictionary. Merriam Webster online defines these terms as follows:

Assault:

1. a: a violent physical or verbal attack
b: a military attack usually involving direct combat with enemy forces
an assault on the enemy's air base
c: a concerted effort (as to reach a goal or defeat an adversary)
an assault on drug trafficking

2 law a: a threat or attempt to inflict offensive physical contact or bodily harm on a person (as by lifting a fist in a threatening manner) that puts the person in immediate danger of or in apprehension (see APPREHENSION sense 1) of such harm or contact
- compare BATTERY sense 1b
b: RAPE entry 1 sense 1

Battery (not in relation to military):

1. a: the act of beating someone or something with successive blows: the act of battering (see BATTER entry 1 sense 1)
b law : an offensive touching or use of force on a person without the person's consent
evidence that supports a charge of battery
- compare ASSAULT entry 1 sense 2a

To the extent that current policy exclusions do not apply to liability arising out of assault or battery, attachment of either endorsement will result in a reduction of coverage.

Generative Artificial Intelligence Exclusions

CG 40 47 01 26:

This endorsement modifies insurance provided under the following:

 COMMERCIAL GENERAL LIABILITY COVERAGE PART

A. The following exclusion is added to Paragraph 2. Exclusions of Section I – Coverage A – Bodily Injury And Property Damage Liability: 

This insurance does not apply to: 

"Bodily injury" or "property damage" arising out of "generative artificial intelligence". 

B. The following exclusion is added to Paragraph 2. Exclusions of Section I – Coverage B – Personal And Advertising Injury Liability: 

This insurance does not apply to: 

"Personal and advertising injury" arising out of "generative artificial intelligence". 

 C. The following definition is added to the Definitions section:
 
"Generative artificial intelligence" means a machine-based learning system or model that is trained on data with the ability to create content or responses, including but not limited to text, images, audio, video or code.

CG 40 48 01 26:

This endorsement modifies insurance provided under the following:

 COMMERCIAL GENERAL LIABILITY COVERAGE PART

 A. The following exclusion is added to Paragraph 2. Exclusions of Section I – Coverage B – Personal And Advertising Injury Liability: 

This insurance does not apply to: 

"Personal and advertising injury" arising out of "generative artificial intelligence". 

B.  The following definition is added to the Definitions section:

"Generative artificial intelligence" means a machine-based learning system or model that is trained on data with the ability to create content or responses, including but not limited to text, images, audio, video or code.

CG 35 08 01 26:

This endorsement modifies insurance provided under the following:

PRODUCTS/COMPLETED OPERATIONS LIABILITY COVERAGE PART

The following exclusion is added to Paragraph 2. Exclusions of Section I – Coverage A – Bodily Injury And Property Damage Liability: 
This insurance does not apply to: 

"Bodily injury" or "property damage" arising out of "generative artificial intelligence". 

B.  The following definition is added to the Definitions section:

"Generative artificial intelligence" means a machine-based learning system or model that is trained on data with the ability to create content or responses, including but not limited to text, images, audio, video or code.

Analysis:

With the increased use of generative artificial intelligence in everyday life, the potential for events contributing to bodily injury, property damage and/or personal and advertising injury liability may rise. Such exposure is not contemplated under the ISO commercial general liability products and as such, the exclusion endorsements are being added as optional underwriting tools to clarify this intent.

CG 40 47 applies the exclusion to both coverage A and coverage B, while CG 40 48 applies to coverage B only. As such, CG 40 47 excludes bodily injury or property damage arising out of the defined term generative artificial intelligence, and CG 40 48 applies the same exclusion to personal and advertising injury.

A separate endorsement CG 35 08 is available for use with the Products/Completed Operations Coverage Part to exclude the coverage with respect to bodily injury or property damage arising out of "generative artificial intelligence".

Because the coverage was not previously specifically excluded, the attachment of any of these endorsements will generally result in a reduction of coverage.

Human Trafficking Exclusion

CG 40 49 Exclusion - Human Trafficking

This endorsement modifies insurance provided under the following: 

COMMERCIAL GENERAL LIABILITY COVERAGE PART

A. The following exclusion is added to Paragraph 2. Exclusions of Section I – Coverage A – Bodily Injury And Property Damage Liability:

This insurance does not apply to "bodily injury" or "property damage" arising out of: 

a. The actual or alleged "human trafficking" of any person committed by anyone;
b. Any act or omission by any insured in connection with the prevention or suppression of
"human trafficking"; or
c. Negligence or other wrongdoing in: 
(1) Hiring;
(2) Training;
(3) Employment; 
(4) Investigation; 
(5) Supervision;
(6) Monitoring;
(7) Reporting to the proper authorities, or failure to so report; or 
(8) Retention; 
of a person for whom any insured is or ever was legally responsible and whose conduct would
be excluded by Paragraph a. or b. above. 

B. The following exclusion is added to Paragraph 2. Exclusions of Section I – Coverage B – Personal And Advertising Injury Liability: 

This insurance does not apply to "personal and advertising injury" arising out of: 

a. The actual or alleged "human trafficking" of any person committed by anyone;
b. Any act or omission by any insured in connection with the prevention or suppression of
"human trafficking"; or
c. Negligence or other wrongdoing in: 
(1) Hiring;
(2) Training;
(3) Employment; 
(4) Investigation; 
(5) Supervision; 
(6) Monitoring;
(7) Reporting to the proper authorities, or failure to so report; or 
(8) Retention; 
of a person for whom any insured is or ever was legally responsible and whose conduct would
be excluded by Paragraph a. or b. Above.

C. The following definition is added to the Definitions section:

"Human trafficking" means:

1. The recruitment, harboring, transportation, provision, obtaining, patronizing or soliciting of a person for the purpose of a commercial sex act which is induced by force, fraud, or coercion, or in which the person induced to perform such act has not attained 18 years of age; or
2. The recruitment, harboring, transportation, provision or obtaining of a person for labor or services, through the use of force, fraud or coercion for the purpose of subjection to involuntary servitude, peonage, debt bondage or slavery.

Analysis:

In anticipation of current and projected increased legislation and court activity, ISO is making available a new endorsement to exclude liability arising out of human trafficking of any and all forms in which it might manifest itself. The endorsement applies to the entire commercial general liability coverage part such that the attachment will apply to all coverages provided under the occurrence or claims-made forms.

Civil private right of action is granted to victims of human trafficking under Chapter 77 – Peonage, Slavery, and Trafficking in Persons of 18 U.S.C. § 1595, as excerpted below:

"An individual who is a victim of a violation of this chapter may bring a civil action against the perpetrator (or whoever knowingly benefits, or attempts or conspires to benefit, financially or by receiving anything of value from participation in a venture which that person knew or should have known has engaged in an act in violation of this chapter) in an appropriate district court of the United States and may recover damages and reasonable attorneys fees."

It has come to the attention of ISO that civil actions seeking recovery of damages for human trafficking against institutions, organizations, and private or public firms would have an increasing impact on liability insurers.

Human trafficking can manifest itself in many ways, such as through forced or exploited labor. Evidence of forced or exploited labor can be found across various industries, from agriculture and construction to manufacturing and domestic work. Forced labor can exist in a supply chain, such as in the extraction and production of raw materials, which may then ultimately end up in a product. Various forms of labor exploitation may be used to fulfill in-demand tasks such as labeling and annotating data, which often tends to be a crucial component in the training of the large language models (LLMs) that power AI chatbots and image generators. In addition, the hospitality sector is uniquely vulnerable to trafficking occurring on premises, while tech companies can also come under scrutiny when their social media products or software are alleged to facilitate human trafficking.

Attachment of endorsement CG 40 49 is optional, and excludes bodily injury, property damage, or personal and advertising injury arising out of any of the following:

• The actual or alleged human trafficking of any person committed by anyone.
• Any act or omission by any insured in connection with the prevention or suppression of human trafficking.
• Negligence or other wrongdoing in hiring, training, employment, investigation, supervision, monitoring, reporting to the proper authorities, or failure to so report, or retention of a person for whom any insured is or ever was legally responsible and whose conduct would be excluded under the endorsement.
  

"Human trafficking" is defined in the endorsement and generally follows the definition of the term "severe forms of trafficking in persons" under U.S. federal law 22 U.S.C. § 7102.

Because this is a new endorsement not currently on ISO policies, its attachment will generally result in a reduction of coverage.

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