ISO Makes Changes to Its Commercial General Liability Coverage Forms

The Insurance Services Office (ISO) recently filed various changes to its Commercial General Liability Coverage (CGL) forms.  Insurance experts expect that these changes, which became effective in most states in April 2013, will soon be widely adopted by carriers nationwide.  Several of these changes could have significant impacts on risk allocation in construction contracts.
  
In the construction context, changes to the ISO’s Additional Insured (AI) endorsements could be particularly impactful.  AI’s endorsements are frequently used as a means of contractual risk transfer in construction contracts.  However, in light of the ISO’s revisions, contracting parties must take care to ensure that the 2013 ISO AI endorsements align with their contractual intent.
 
Willis North America’s Construction Practice publication, Blueprint, provides a helpful summary of several key changes to the AI endorsements and their potential impacts on construction contracting.  Blueprint further discusses the interplay between the AI endorsements and various states’ laws, provides general tips for contracting parties, and considers the benefits and drawbacks to the use of non-ISO AI endorsements.  Construction professionals who use AI endorsements in their contracts would be well-served by reviewing Blueprint’s helpful primer on this subject.
For more information on professional liability matters, contact Preti Flaherty Attorney Benjamin Piper at 207.791.3000 or a member of Preti's Professional Liability Practice Group.