CG DS 03–LIQUOR LIABILITY DECLARATIONS

(November 2022)

INTRODUCTION

Insurance Services Office (ISO) provides a sample declarations that may be referenced by insurance companies when they develop their own declarations. It includes descriptive and inclusive language that clearly identifies the risk, coverage information that relates to specific areas in the coverage form, and rating and premium information that informs the insured of the exact nature of the charges made and charges that could be made at premium audit. This brief analysis addresses the information that CG DS 03–Liquor Liability Declarations includes.

DESCRIPTION

This section includes the following information:

• Policy number
• Insurance company name
• Producer name
• Named insured

Note: The order in which multiple named insured are listed matters. The first named insured has duties and responsibilities that are not shared with the other named insured. It must pay the premium and will receive any return premium. It is also the only insured that will receive notice of cancellation. If that first named insured is deleted from the policy, the second named insured will automatically move up the list to be the first named insured.

• Mailing address
• Policy period expressed as month, day, and year beginning at 12:01 a.m. at the named insured's mailing address Insuring Agreement

The insurance company agrees to provide the insurance this coverage form includes, subject to all its terms and conditions and the premium being paid.

LIMITS OF INSURANCE

This section includes the following information

• Each Common Cause Limit

The Each Common Cause Limit is the most that may be paid for all injury to one or more persons or organizations that results from selling, serving, or furnishing alcoholic beverages. It is subject to the Aggregate Limit.

• Aggregate Limit

The Aggregate Limit is the most that may be paid for all injury that results from selling, serving, or furnishing alcoholic beverages.

Related Article: CG 00 33 and CG 00 34–Liquor Liability Coverage Forms Analysis

RETROACTIVE DATE (CG 00 34 ONLY)

The retroactive date entered in this section of the sample declarations applies only when coverage is written on

CG 00 34–Liquor Liability Coverage Form–Claims-Made Basis. The retroactive date can be the policy effective date or any earlier date that the named insured and the insurance company agree to. If no retroactive date applies, the word "None" must be entered. If neither the word “None” nor a date is entered, the retroactive date is the same as the policy effective date.

DESCRIPTION OF BUSINESS

The form of business must be identified because it determines exactly who qualifies as an insured. Section II–Who Is an Insured explains the forms of business. The eligible forms of business are:

• Individual
• Partnership
• Joint Venture
• Limited Liability Company
• Organization other than the above. This includes a corporation.

Notes:

1. If there is more than one named insured, there may be more than one form of business.

2. In some cases, a description of the business is included. This is for information purposes and does not affect the coverage provided.

3. The 04 13 edition adds Trusts to the list of insureds. However, CG DS 03 has not been updated to reflect this change.

ALL PREMISES YOU OWN, RENT OR OCCUPY

The location number and address of every location the insured owns, rents, or occupies must be entered in the spaces this section provides. This is done for quick reference and rating purposes. However, coverage is not limited to only the locations listed, unless provided for elsewhere in the coverage form or by separate endorsement.

CLASSIFICATION AND PREMIUM

This section includes the following information:

• Classification
• Code number
• Premium base
• Rate (per $1,000 of gross sales)
• Advance premium
• State or other tax, if applicable
• Total premium subject to audit
• Total premium and premium payment schedule (if the policy period is more than one year)
• Audit period/frequency, if applicable

ENDORSEMENTS

This section lists the endorsements included when the policy is issued. Subsequent endorsements issued after inception obviously cannot be listed but are included by inference.

STATEMENT OF COVERAGE

This section states that this declarations, CG 00 33 or CG 00 34, the common policy conditions, and any endorsements included form the complete policy.

SIGNATURES

This section has spaces for the countersigning agent's name and the date the policy was countersigned. The facsimile signatures of the insurance company officers may also be entered in this area if they are not entered elsewhere.