COMPARE: AAIS CU 0002–COMMERCIAL UMBRELLA LIABILITY COVERAGE 09 10 EDITION TO AAIS CU 0001–COMMERCIAL EXCESS/UMBRELLA LIABILITY COVERAGE 09 10 EDITION

(October 2025)

INTRODUCTION

The American Association of Insurance Services (AAIS) previously offered umbrella/excess liability coverage under UM 0200–Commercial Umbrella/Excess Liability Coverage 04 00 Edition. It was replaced by CU 0001–Commercial Excess/Umbrella Liability Coverage 09 10 Edition.

The new AAIS umbrella liability policy is CU 0002–Commercial Umbrella Liability Coverage 09 10 Edition, and is similar to the Insurance Services Office (ISO) Commercial Liability Umbrella Coverage Form.

NOTE: CU 0001 and CU 0002 are similar. This article only highlights their differences.

IDENTICAL SECTIONS

These sections are identical in CU 0001 and CU 0002 and are not covered in this analysis.

· Table of Contents

· Agreement

· Nuclear Energy Liability Exclusion

DEFINITIONS

The following definitions in CU 0002 are not in CU 0001:

· Covered Auto

· Retained Limit

The following definitions are provided in both forms, but with modifications.

Coverage Territory

The territory in CU 0002 is identical to the territory for Coverage U in CU 0001.
The coverage territory for Coverage E in CU 0001 is determined by the underlying insurance's coverage territory.

Covered Contract

Covered contract in CU 0002 does not include contracts related to the following:

Autos loaned or rented with drivers.
Autos that transport property over a route a public authority approved.
Property damage to rented or leased autos.

Insured

Insured in CU 0002 is identical to insured in Coverage U in CU 0001 as it relates to coverage other than auto.

o CU 0002 defines insured differently with respect to coverage relating to autos.

Coverage E in CU 0001 includes the named insured and other insureds, as detailed in the underlying insurance. However, this coverage only applies to the extent that the underlying insurance covers them.

Self-insured Retention

CU 0002 adds a paragraph explaining that self-insured retention applies only to occurrences and offenses the underlying insurance does not cover or which would have been covered, but the limits were exhausted.

COVERAGES

CU 0002 provides two separate coverages:

Coverage L–Bodily Injury and Property Damage Liability
Coverage P–Personal and Advertising Injury Liability

CU 0001 provides two separate coverages:

Coverage E–Excess Liability
Coverage U–Umbrella Liability

CU 0002 and CU 0001 both cover bodily injury, property damage, and personal and advertising injury liability.

This comparison uses CU 0002 as the standard and separately compares Coverage E—Excess Liability and Coverage U—Umbrella Liability in CU 0001.

AGREEMENT

The agreements are similar, except as follows:

Coverage E

This coverage applies only when the underlying insurance provides coverage.
CU 0001 for this coverage does not include the Knowledge of Bodily Injury or Property Damage Condition, which is addressed in CU 0002.
This coverage applies to injuries or damages that are not bodily injury, property damage, or personal and advertising injury, as long as the underlying policy provides that coverage.

This other coverage may:

o be subject to claims-made provisions as outlined in the insuring agreement.

o have an extended reporting period as described in item e. Extended Reporting Period.

Coverage U

This coverage does not apply to any claims covered by Coverage E.
This coverage applies in excess of the self-insured retention or other non-excess insurance. The provision does not refer to the terms underlying insurance or retained limit.
This coverage addresses bodily injury, property damage, and personal and advertising injury.

EXCLUSIONS

Coverage E

This coverage excludes all injuries and damages the underlying insurance excludes. It has 16 exclusions matching the CU 0002, with two exceptions as follows:

The pollution exclusion is absolute unless the underlying insurance provides coverage. If it does, then coverage applies in accordance with the terms of the underlying policy.
The electronic data corruption exclusion is absolute unless the underlying insurance provides coverage. If it does, then coverage applies in accordance with the terms of the underlying policy.

NOTE: The underlying coverages must be evaluated to determine if the coverage provided is broader or narrower than that provided by CU 0002.

Coverage U

All exclusions in CU 0001 are identical to those in CU 0002 except for the following:

Bodily injury or property damage due to the use of a non-covered auto is not applicable because CU 0001 excludes all auto coverage.
The pollution exclusion is absolute.
The exception to the pollution clean-up loss, cost, or expense exclusion does not apply.
There is no coverage for auto, aircraft, watercraft, mobile equipment, or recreational vehicles.
The employers liability exclusion does not have an underlying coverage exception.
The fellow employee exclusion does not apply because it is related to auto that CU 0001 already excludes.
The exclusion for racing activities does not apply because it pertains to auto, mobile equipment, and recreational vehicles that CU 0001 already excludes.
The exclusion for property transported by a covered auto does not apply because CU 0001 excludes auto coverage.
The electronic data exclusion is absolute without any exceptions.
Lead, silica, and asbestos are excluded without exception for underlying coverage.

SUPPLEMENTAL PAYMENTS

All Supplemental Payments are the same except that CU 0001 has an exception in Coverage E. If the underlying insurance reduces limits due to defense costs, Coverage E also decreases.

WHAT MUST BE DONE IN CASE OF LOSS

All items are identical, except CU 0001 includes Coverage E.

HOW MUCH WE PAY

This section has several changes.

1. Limits

CU 0001 has two additional items as follows:

1. d. applies only to the extent that this policy provides coverage.

· 1. e. is added, specifying the limits are the most paid, regardless of how many coverages the policy includes.

2. General Aggregate

CU 0001 uses the term General Aggregate, while CU 0002 uses the term Aggregate.
The General Aggregate in CU 0001 is the total of both Coverage E—Excess Liability and Coverage U—Umbrella Liability damages, including defense costs if paid within the limits for Coverage E.
The General Aggregate in CU 0001 does not apply to the following:

o Bodily injury or property damage that the products/completed work hazard covers.

o Bodily injury or property damage in the underlying insurance that is not subject to an aggregate limit.

NOTE: The Aggregate in CU 0002 does not apply to bodily injury or property damage related to covered autos. This means it is similar to CU 0001 because auto is usually one of the few liability coverages not subject to an aggregate.

Products/Completed Work Hazard Aggregate

CU 0001 has a Products/Completed Work Hazard Aggregate, while CU 0002 does not. This means that products and completed work under CU 0002 are included in the Aggregate limit.

Each Occurrence Limit

Under CU 0001, this amount includes all covered damages plus defense costs if paid within the limits of Coverage E. It encompasses all bodily injury and property damage from a single occurrence, along with all personal injury and advertising injury suffered by one person or organization, and any other injury insured under Coverage E due to an event, error, negligent act, omission, incident, or offense.
Under CU 0002, this is the total of damages from all bodily injury and property damage in a single occurrence.

Personal and Advertising Injury Limit

This is part of the occurrence limit in CU 0001.

CU 0002 has a limit for personal and advertising injury that applies to all personal injury and advertising injury one person or organization sustains.

Continuance

Coverage E in CU 0001 provides the same coverage as the underlying insurance if the underlying insurance limits are exhausted. If the underlying insurance limits are reduced, Coverage E applies in excess of those reduced limits.

This provision is not included in CU 0002.

Concurrency

This item is similar to CU 0002, but it only applies to Coverage E under CU 0001.

CONDITIONS

These are identical, with one exception. When there is a reference to underlying insurance within a condition in CU 0001, that item applies to only Coverage E, except in Appeals when Coverage U applies because of self-insured retention.