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2. CG
3. CG-21-11

What the form is

The CG 21 11 endorsement is an exclusionary endorsement used with the Commercial General Liability (CGL) policy. Its primary purpose is to eliminate coverage for 'personal and advertising injury' (Coverage B) that arises from the use of unmanned aircraft, commonly known as drones. This means that if a business causes personal or advertising injury (such as invasion of privacy, libel, or slander) through its use of a drone, this endorsement would preclude coverage for those claims under Coverage B. It specifically addresses liability stemming from the ownership, maintenance, use, or entrustment of unmanned aircraft to others.

Classes of business it applies to

This endorsement can apply to a wide range of businesses that might use or consider using unmanned aircraft in their operations. Examples include:

• Real Estate Agents: Using drones for aerial photography of properties. If a drone captures images that lead to an invasion of privacy claim, this endorsement would exclude Coverage B.
• Construction Companies: Employing drones for site surveys, inspections, or monitoring progress. A claim alleging that drone surveillance improperly captured and disseminated images of individuals could be excluded under Coverage B.
• Marketing and Advertising Firms: Using drones for creating promotional videos or content. If such content leads to a claim of libel or slander, this endorsement would apply.
• Event Photography/Videography: Utilizing drones to capture footage at events. Claims of privacy invasion from drone footage would fall under this exclusion for Coverage B.
• Agriculture: Farms using drones for crop monitoring. While less likely to generate personal and advertising injury claims compared to other uses, any such claims (e.g., if drone imagery is misused) would be excluded under Coverage B.

Special considerations

Important points to consider regarding CG 21 11:

• Coverage B Specific: This endorsement only applies to Personal and Advertising Injury Liability (Coverage B). It does not affect Bodily Injury or Property Damage Liability (Coverage A) related to unmanned aircraft, which would be addressed by other endorsements like CG 21 09 (total exclusion for A and B) or CG 21 10 (Coverage A only exclusion).
• Definition of Unmanned Aircraft: The endorsement relies on a specific definition of "unmanned aircraft," which generally refers to an aircraft not designed or manufactured to be controlled directly by a person from within or on the aircraft.
• Part of a Set: CG 21 11 is part of a series of ISO endorsements addressing unmanned aircraft exposures. Insurers can choose from various exclusionary endorsements (like CG 21 09, CG 21 10, CG 21 11) or limited coverage endorsements (like CG 24 50, CG 24 51, CG 24 52) to tailor coverage.
• Potential for Coverage Gaps: Businesses using drones need to be aware that if this endorsement is attached, they will have no personal and advertising injury coverage under their CGL for drone-related incidents. They may need to seek specialized drone liability insurance to cover these exposures.
• Regulatory Environment: The use of drones is subject to FAA regulations and potentially state and local laws concerning privacy and surveillance. While the insurance form addresses coverage, compliance with these regulations is a separate but related concern for businesses.

Key information for agents and underwriters

• Risk Assessment: Underwriters need to carefully assess the insured's use or potential use of drones. If drone usage is present, the underwriter must decide whether to exclude drone-related personal and advertising injury (using CG 21 11), exclude all drone liability (CG 21 09), or provide limited coverage (e.g., CG 24 50).
• Explaining the Exclusion: Agents must clearly explain the impact of this endorsement to insureds, particularly those in industries likely to use drones. Insureds need to understand that Coverage B for drone-related personal and advertising injury is being removed.
• Alternative Coverage Options: If an insured requires coverage for drone-related personal and advertising injury, agents should explore specialized drone insurance policies or endorsements that might buy back this coverage. Standard CGL with this endorsement will not suffice.
• Pricing Implications: The attachment of this exclusionary endorsement might have a minor impact on premium compared to a policy without it, as it reduces the scope of coverage. However, the primary driver for drone-related premium adjustments will be whether any coverage is being granted back via other endorsements.
• Consistency with Underlying Coverage: For umbrella or excess liability policies, underwriters should ensure that exclusions related to unmanned aircraft are consistent with the underlying CGL policy. For example, endorsement CU 21 72 (Exclusion - Unmanned Aircraft - Coverage B Only) is designed for use with the Commercial Liability Umbrella when CG 21 11 is on the underlying CGL.