Broad Form Property Damage Endorsement

What Is a Broad Form Property Damage Endorsement?

A broad form property damage endorsement was an expansion to a commercial general liability (CGL) policy that wiped out the exclusion of property as part of the coverage given by the insurer. A higher premium was generally required for this extra coverage.

Understanding a Broad Form Property Damage Endorsement

A broad form property damage endorsement alludes to, in addition to other things, liability coverage for damage from work performed by subcontractors for the benefit of owners and general contractors. The necessity for a broad form property damage endorsement has become obsolete as reforms during the 1980s required it to be incorporated under CGL coverage. Thusly, under current CGL coverage, a broad form property damage endorsement naturally applies except if generally excluded.

In the previous general liability insurance policy (1973 exhaustive general liability insurance policy) there were numerous exclusions that brought about certain damages to property not being covered, principally the care, custody, or control exclusion.

Since the coverage was limited to just certain areas of the property and in certain cases, the broad form property damage endorsement was required to get a blanket coverage to property damage.

In 1985, the extensive general liability insurance policy was refreshed to the commercial general liability policy and included terms that were covered by the broad form property damage endorsement, delivering the broad form property damage endorsement obsolete.

Broad Form Property Damage Endorsement Development

The term "broad form property damage" (BFPD) hasn't been being used by the Insurance Services Office, Inc. (ISO) since the mid-1980s, regarding CGL insurance policies. BFPD is in many cases still explicitly requested today as part of a project worker's liability coverage. These current calls for BFPD endorsements demonstrate an absence of comprehension of what is consequently remembered for the present ISO commercial general liability policies (versions 1985 and later).

In 1985, ISO made sense of the accompanying coverages were given under the "new" commercial general liability policy. It stated that both new forms (occurrence and claims-made) contain the fundamental scope of coverage accommodated broad form property damage under the old thorough general liability insurance (Ed. 1-73) and the old broad form far reaching general liability endorsement (GL 04 04 Ed. 5-81).

Since changes to the extensive general liability insurance policy were expansive, in both coverage and approach to premium development, ISO distributed a huge number of publications to inform the insurance industry as well as the public on the changes to CGL policies completely.

Features

• Today, a broad form property damage endorsement is obsolete as the areas it tries to cover are currently included under commercial general liability policies.
• Broad form property damage endorsements were required according to the 1973 extensive general liability insurance policy that had numerous exclusions in regards to property damage.
• In 1986, the commercial general liability policy was refreshed to incorporate the terms of broad form property damage endorsements.
• A broad form property damage endorsement is an expansion to a commercial general liability policy that has taken out the exclusion of property as part of the insurance coverage.