Effective this March, the Insurance Services Office (ISO) revised its forms and endorsements for commercial general liability. This latest round of CGL changes is the largest the industry has seen in years. Major and minor modifications, along with new endorsements, could significantly affect, and in some cases narrow, the scope of CGL coverage moving forward. While insurers are obligated to notify insureds about changes that affect policy coverage, as always, the burden of due diligence ultimately falls on contractors to understand their coverage and its possible exposures.
"ISO forms are not used by everyone, but a lot of the industry works from these forms," says Frank Armstrong, senior vice president and national director of construction claims for Willis North America. "The changes being introduced offer some interesting clarifications that may change the fundamental breadth of coverage. There are more words than before, and that tends to create areas ripe with conflict."