1. Forms
2. CG
3. CG-22-48

What the Form Is

The CG 22 48 is an exclusionary endorsement used with the Commercial General Liability (CGL) Coverage Part. Its primary purpose is to eliminate coverage for liability stemming from the professional services provided by an insured engaged in insurance and related operations. This endorsement addresses 'errors and omissions' type exposures that are typically covered under specialized Professional Liability (E&O) insurance policies.

Classes of Business It Applies To

This endorsement is specifically designed for insureds whose business operations are in the insurance sector. This includes, but is not limited to:

• Insurance companies
• Insurance agents and brokers
• Managing general agents (MGAs)
• Third-party administrators (TPAs)
• Insurance service organizations
• Claims adjusters (when acting in a professional capacity for others)
• Risk management consultants providing insurance advice

Real-world example: An insurance agency that is sued for failing to procure the correct type or amount of coverage for a client would find that their CGL policy, if endorsed with CG 22 48, does not cover this claim. The agency would need a separate E&O policy for such an event.

Special Considerations

Key aspects of this exclusion include:

• Professional Services Focus: The exclusion applies to 'bodily injury,' 'property damage,' 'personal injury,' and 'advertising injury' arising out of the rendering of or failure to render professional services in the course of insurance operations.
• E&O Gap: Attaching this endorsement creates a significant gap in coverage for professional liability. It is crucial that any insured subject to this endorsement has a dedicated Errors & Omissions Liability policy to cover the excluded exposures.
• Personal and Advertising Injury Exclusion: Notably, this endorsement also excludes personal and advertising injury (e.g., libel, slander, invasion of privacy) that arises from the insurance and related operations. This means that even if an E&O policy is in place, care must be taken to ensure that the E&O policy adequately covers these types of personal and advertising injury claims, as the CGL will not.

Real-world example: If an insurance brokerage firm is sued for defamation (a personal injury claim) due to statements made while providing insurance advice, the CG 22 48 endorsement would likely exclude this claim from their CGL policy.

Key Information for Agents and Underwriters

For Agents:

• It is paramount to explain the impact of this endorsement to clients in the insurance industry.
• Confirm that clients have appropriate E&O coverage in place that addresses the exposures excluded by CG 22 48, including personal and advertising injury.
• Document the client's acknowledgment of this exclusion and their E&O coverage status.

For Underwriters:

• This endorsement is used to clearly delineate the scope of the CGL policy and to avoid covering professional liability risks that are better suited for specialized E&O policies.
• Risk assessment should involve verifying that the insured understands the exclusion and has or is actively seeking separate E&O coverage.
• Pricing of the CGL for an insurance-related business will reflect the removal of this professional liability exposure.
• Underwriters should be aware that the CGL is not intended to be a 'catch-all' for all liabilities of an insurance professional, and this endorsement helps maintain that distinction.