(October
2025)
The
American Association of Insurance Services (AAIS) developed CU 0001–Commercial
Excess/Umbrella Liability Coverage 09 10 Edition to replace UM 0200–Commercial
Umbrella/Excess Liability Coverage 04 00 Edition. Additionally, they introduced
a new form, CU 0002 – Commercial Umbrella Liability Coverage, which AAIS now
considers its primary umbrella liability coverage form.
Related
Articles:
CU
0002–Commercial Umbrella Liability Coverage Analysis
CU
0001–Commercial Excess/Umbrella Liability Coverage Analysis
UM
0200 was once the only umbrella coverage offered by AAIS. Therefore, it is
essential to understand the updates introduced when AAIS replaced UM 0200 with
CU 0001. This article compares CU 0001 and UM 0200, with each section aligned
to the CU 0001 policy structure.
o
Coverage is available for any newly formed or acquired organization
(excluding a Joint Venture, LLC, or Partnership) for up to 90 days.
o
Coverage is not provided if the acquired organization already has
similar insurance.
o
Coverage does not include injuries or damages occurring prior to the
organization’s new or formation date.
o
Coverage does not include any personal/advertising injury due to an
offense that occurred before the organization's newly acquired or formed date.
o
Under Coverage E—Excess Liability— the coverage territory is the same as
the underlying insurance.
o
Under Coverage U—Umbrella Liability—the coverage extends worldwide,
excluding locations under trade embargoes and economic sanctions.
NOTE: Since the basic
territory definition has been eliminated, CU 0001 no longer requires suits to
be brought into the basic territory.
o
Members and managers are now separated.
§ Members
are included as insureds only with respect to their conduct of the insured's
business.
§ Managers
are included as insureds only with respect to their duties of the insured's
business.
o
Added Trustees as an insured.
o
Removed mobile equipment operator as an insured. However, this does not
include the insured’s employees.
o
Volunteer is now included as an insured when acting as the insured's
real estate manager.
o
Employees and volunteer workers of the named insured are now included
while performing their duties during the insured’s business operations.
§ Coverage
for managers or executive officers adds Partnerships or Joint Ventures to the “other
than organization.”
o
Employees and volunteers are now excluded from coverage for injuries to
partners, members, family members of all excluded insureds, and third-party
damage liabilities.
o
CU 0001 moved “Newly Acquired Organization” from the definition of “Insured”
to the definition of “You and Your,” making Newly Acquired Organizations now a named
insured.
o
Mobile equipment used off public roads now includes descriptions of
equipment such as bulldozers, farm machinery, and forklifts.
o
Mobile equipment no longer needs to be self-propelled, meaning it no
longer has to rely on its own power source to move.
o
References to concrete mixers and mix-in-transit are removed from the
description of equipment used to provide mobility.
o
Equipment not described and not specifically excluded is now included,
as long as it is not used to transport persons or cargo.
o
Data Records are excluded as tangible property.
o
Under Coverage E:
§ Any
auto-related coverage is not considered tangible property.
§ Any pollutant
cleanup requests for any auto-related losses are considered property damage.
This
section is now named Commercial Excess/Umbrella Liability Coverages, whereas it
was formerly called Principal Coverages in UM 0200.
CU 0001 modified the following exclusions:
e. The
exclusion language is expanded by replacing the term “benefits specified” with
“Liability Imposed” under auto no-fault. This update removes first-party bodily
injury, as it is now covered under the liability imposed language.
Additionally, the revision adds exclusions for personal injury protection (PIP)
and auto medical payments.
f. Pollution
is modified. It is now an absolute exclusion unless the underlying insurance
provides coverage. In that case, it follows the terms of the underlying
insurance.
h. Pollution
expense is modified, unless the underlying insurance provides coverage. In that
case, it follows the terms of the underlying insurance.
n. Lead
exclusion is expanded to clearly state there is no coverage.
k. Employment-related
practices
l. War
m. Data records (unless
covered by underlying insurance)
o. Silica
p. Asbestos
q. Medical
payments/expenses (provided without fault)
The
exclusions in UM 0200 were previously listed in a separate section but are now
included in the insuring agreement section.
CU
0001 modified the following exclusions:
b. The
term “insured” is used in lieu of “you” for contractual liability contracts,
broadening the exclusion.
f. The
exclusion language is expanded by replacing the term “benefits specified” with
“Liability Imposed” under auto no-fault. This update removes first-party bodily
injury, as it is now covered under the liability imposed language.
Additionally, the revision adds exclusions for personal injury protection (PIP)
and auto medical payments.
g. and
h. Pollution exclusion has been revised. The pollution exclusion and
pollution cleanup expense exclusion are now listed separately as distinct
exclusions. This update does not alter the wording or intent.
k. Reference
to personal and advertising injury in the liquor exclusion has been removed.
l. This
exclusion applies when employees are acting within the scope of their
employment and performing duties related to the insured’s business. This makes
the exclusion more restrictive.
n. This
exclusion now applies before, during, or after the individual's employment,
making it more restrictive.
o. This
exclusion no longer distinguishes real property from personal property, and it
specifically excludes any costs to improve such property, even if the insured makes
the property safer.
s.
Property damage to personal property in the insured’s care, custody, or control
is now an absolute exclusion with the exception of sidetrack and trailer
interchange agreements.
z.
Violation of various regulations related to communications is more specific.
dd.
Breach of contract now also excludes personal injury, as personal injury and
advertising injury have been combined.
ee.
Failure of goods to conform now also excludes personal injury, as personal
injury and advertising injury have been combined.
ff. The exclusion of advertising injury for
entities in the business of advertising is expanded to also exclude the Web and
Internet. However, there are many exceptions.
gg. Wrong
price now also excludes personal injury, as personal injury and advertising
injury have been combined.
hh.
Personal injury and advertising injury contractual liability broadens the exclusion
to “the insured” rather than just “you.”
ll. Lead exclusion
has been modified by separating the exposure provisions, such as bodily injury
or property damage, as well as costs and expenses.
u.
Property damage to personal property loaned to the named insured.
v.
Property damage to property abandoned, sold, or given away.
x. Data Records
aa.
Personal injury and advertising injury committed with knowledge an injury would
occur.
bb.
Personal injury and advertising injury due to criminal acts.
ii.
Personal injury and advertising injury violations of intellectual property
rights.
jj.
Personal injury and advertising injury from various types of Internet sites the
insured hosts, such as social communication forums.
mm.
Silica is now excluded from the policy and is no longer optional by
endorsement.
nn.
Asbestos is now excluded from the policy and is no longer optional by
endorsement.
This
was Defense Coverage in UM 0200. Items 1 through 5 in UM 0200 are now
incorporated into the insuring agreements in CU 0001.
Item 6
in UM 0200 comprises most of the Supplemental Payments in CU 0001.
The following
are the differences between Item 6. and Supplemental Payments Item 1:
a. Court
costs taxed against the insured no longer include attorney fees or expenses.
c. and
d. are combined. The maximum daily earnings are now $250 per day. While
the UM 200 only provided $100 per day.
g. The
limit on bail bonds is now $2,000. This was item h. in the UM 200, but it only
provided $500 in coverage.
·
Reference to Coverage U—Umbrella Liability paying in excess of the
retained limit is eliminated. Therefore, it is not listed in CU 0001.
4. Coverages E and U are addressed together
rather than separately.
4.b. Under Coverage E—Excess Liability, if
defense costs are within the underlying insurance’s limits, any defense costs the
insurance company pays under Coverage E is included in the Occurrence Limit.
Items 5. and 6. regarding
exhaustion or limit reduction under Coverage E remain applicable. However,
defense costs are added for damages if they are part of the underlying
insurance.
7. is a
new provision. It explains how the policy responds if any underlying insurance
is not concurrent with this policy.
1.
Appeals has been broadened. It now includes the insured not electing to appeal
a judgment, not just the underlying insurer. It also adds Coverage E and
Coverage U for self-insured retention. Additionally, it removes the phrase “in
addition to the applicable limit.”
4. Bankruptcy
of Underlying Insurer now applies to only Coverage E. In UM 0200, it applied to
both Coverage E and Coverage U.
5. Cancellation
and Nonrenewal replaces the four-paragraph condition in UM 0200.
11. Legal
Action Brought Against Us adds an additional paragraph stating that injury or
damage not covered by this policy, or damages in excess of the policy limit,
are not paid.
12.
Maintenance of Underlying Insurance adds Coverage E—Excess Liability to the
provision, as Coverage U—Umbrella Liability does not apply. It also clarifies
that this insurance will not replace underlying insurance if the insured fails
to maintain such coverage.