1. Forms
2. CG
3. CG-29-52

What the form is

The CG 29 52 is an endorsement used to amend the standard Liquor Liability Exclusion found in the ISO Products/Completed Operations Liability Coverage Part. Its primary purpose is to clarify and often strengthen the exclusion of coverage for "bodily injury" or "property damage" for which an insured may be held liable by reason of causing or contributing to the intoxication of any person; furnishing alcoholic beverages to a person under the legal drinking age or under the influence of alcohol; or any statute, ordinance, or regulation relating to the sale, gift, distribution, or use of alcoholic beverages. This endorsement specifically addresses situations arising out of the products-completed operations hazard.

Classes of business it applies to

This endorsement is relevant for businesses whose products or completed operations could lead to liquor-related liabilities, even if they are not directly in the business of manufacturing, distributing, selling, serving, or furnishing alcoholic beverages. Examples include:

• Contractors: A contractor who completes a job where alcohol is subsequently served (e.g., a catered event at a completed venue) and an incident occurs related to an intoxicated guest due to the contractor's completed work (though this is a more indirect exposure).
• Manufacturers: Manufacturers of products that might be used in conjunction with alcohol consumption where a defect in the product contributes to an injury involving an intoxicated person.
• Service Providers: Businesses whose completed services might inadvertently lead to situations where alcohol is consumed and liability arises (e.g., an event planner whose contract is completed, but an issue related to their prior planning contributes to a liquor-related incident).

It's important to note that this endorsement modifies the exclusion in the Products/Completed Operations coverage, so it's focused on liabilities arising after the insured's work is completed or their product is out of their control.

Special considerations

Key considerations for the CG 29 52 include:

• Strengthened Exclusion: The 2013 revision of this endorsement, along with related liquor liability forms, aimed to reinforce the exclusion, particularly in response to court cases that may have found ambiguity. It clarifies that the exclusion applies even if the claim alleges negligence in areas like supervision, hiring, employment, training, or monitoring of others, or in providing or failing to provide transportation for an intoxicated person.
• BYO Clarification: While the main CGL liquor liability exclusion was revised to state that a "bring your own" (BYO) establishment is not, by that fact alone, considered to be in the business of selling, serving, or furnishing alcohol, this endorsement (CG 29 52) and its counterpart CG 21 50 were revised to indicate the exclusion will apply if the insured permits any person to bring alcoholic beverages onto the named insured's premises for consumption there, if a reason for liability is causing or contributing to intoxication. This can be a reduction in coverage.
• Use with Products/Completed Operations: This endorsement is specifically designed for use with the Products/Completed Operations Liability Coverage Part, not the standard Commercial General Liability Coverage Part (which would typically use an endorsement like CG 21 50).

For example, if a company manufactures and sells a home brewing kit, and a user of the kit becomes intoxicated from the beer they made and causes an accident, the CG 29 52 would amend the liquor liability exclusion in the manufacturer's Products/Completed Operations coverage. The endorsement would clarify that even if the injured party alleged the manufacturer was negligent in its instructions or product design leading to over-intoxication, the exclusion would likely still apply.

Key information for agents and underwriters

• Risk Assessment: Underwriters need to carefully assess the insured's products-completed operations exposure related to alcohol, even if the insured is not directly in the liquor business. This endorsement generally broadens the exclusion, reducing coverage for the insured.
• Coverage Gaps: Agents should ensure clients understand how this endorsement modifies their coverage. If an insured has a significant products-completed operations exposure where liquor liability is a concern, relying on an amended exclusion might not be sufficient, and a separate Liquor Liability policy might be necessary if available and appropriate for that exposure.
• Pricing: The application of this endorsement typically doesn't have a direct premium charge itself, as it's generally a clarification or broadening of an existing exclusion. However, the underlying assessment of the products-completed operations risk will influence the overall premium.
• Distinction from CG 29 53: It's important to distinguish CG 29 52 from CG 29 53 ("Amendment Of Liquor Liability Exclusion – Exception For Scheduled Premises Or Activities"). CG 29 53 is similar but allows for scheduling specific premises or activities where the liquor liability exclusion will not apply, thereby providing some coverage back. CG 29 52 does not offer this exception.