Golf Course Endorsement (ISO Form) from FC&S Legal

The following article is from National Underwriter’s latest online resource,
FC&S Legal: The Insurance Coverage Law Information Center.

The Insurance Coverage Law Information Center
GOLF COURSES ENDORSEMENT (ISO FORM)
Compares the ISO Golf Courses Endorsement, MS GC 01, with the Building and Personal
Property Coverage Form and the Commercial General Liability Coverage Form.
November 4, 2013

ISO Form
Summary: ISO has developed an endorsement that provides tailored coverage for golf courses,
form MS GC 01 07 13. Golf courses have some unique exposures including golf carts and the
storage of personal property of the members of the club. The golf course endorsement modifies
the Commercial General Liability Form, the Commercial Property – Building and Personal Property
Form and the Commercial Property – Causes of Loss Special Form. Significant changes are made
to the Building and Personal Property form. Because of the unique needs of golf courses, several
additional coverages are added.
Topics covered:
• Changes to the building and personal property coverage form
• Additional coverages
• Coverage extensions
• Changes to the causes of loss – special form
• Exclusions
• Changes to the commercial general liability coverage form
• Definitions
• Endorsements

Changes to the Building and Personal Property Coverage Form
The form begins by discussing the changes to the Building and Personal Property Coverage Form CP 00 10 10 12. A
modification to the coverage section is the addition of all deeded and leased property on which the course resides. The
unendorsed building form focuses more on structures on the real property and business personal property instead of the
property itself. However, the nature of a golf course is such that the property itself is a major portion of the area to be
insured.
Added as part of the building coverage are above or below ground gasoline, diesel, kerosene, or propane tanks as
well as their piping, connections, and attached pumps and electrical equipment. Courses use these tanks to fuel carts,
maintenance vehicles, and equipment. With this addition the exclusion for underground pipes, drains, or flues is removed
from the property not covered section of the property form.
Two additional types of property are, however, excluded from coverage. They are property in storage away from the
premises shown in the declarations unless specifically identified in the endorsement and computers permanently installed
in an aircraft, watercraft, motortruck, or other vehicle. The insured has less control over property stored off premises
and may not control how it is protected from loss. Many courses have refreshment carts with warmers, coolers, and hour
meters, as well as shuttle boats or similar vehicles that may have computer driven navigation equipment. The Golf Course
program is not intended to cover this type of computer equipment.

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Additional Coverages

The form then adds a total of twelve additional coverages. These will be discussed in turn.
Money and Securities
Loss of money and securities is covered for three causes of loss: theft (meaning any act of stealing), destruction, or
disappearance. These are broad causes of loss and the form has only minor qualifying clauses. The covered locations are
a bank or savings institution; within the living quarters of the insured, partners, or any employee having custody of the
funds at the described premises; or in transit between any of these places. So if an employee is taking money to the bank
and loses it, there is coverage. If the bank has closed and the employee is taking the money home for safekeeping and
the employee is robbed, there is coverage. If the employee’s dog chews up the funds over the weekend, there is coverage
since the property has been destroyed.
Coverage is not provided for loss caused in three situations: accounting or mathematical errors, giving or surrendering
property in an exchange or purchase, and property contained in any money-operated device unless the device has a
continuous recording mechanism. Accounting errors are not covered because they are just that, human error. The
exception to coverage for giving property in an exchange or purchase is a common one. For example a golfer pays for
a set of clubs from the golf shop with bogus money, there is no coverage because the equipment was given away in a
purchase. The counterfeit money itself is discussed in a following section.
The maximum amount paid for loss of money and securities is $10,000 if the property is either in or on the described
premises or within a bank or savings institution. If the property is anyplace else, the maximum paid is $5,000. It is assumed
that the property is safer on the insured premises or in a bank; therefore the limit is higher.
The policy requires that records of the money and securities be kept in order to validate any claims of loss or damages. If
there is no proof that the property existed, questions could arise as to whether or not the insured is being totally honest
or is looking to make a fast profit from his insurance policy. Additionally, without records it is difficult to know exactly how
much money has been taken in because the amount fluctuates based on items sold and fees paid.
Since this section provides coverage for money and securities, it states here that the property not covered provision in the
property form for money and securities does not apply to the extent of the coverage provided here.
Fire Extinguishing Systems Expense
The next additional coverage is for fire extinguishing systems expense. If fire extinguishers have been used in or on the
building described in the declarations or within 100 feet of the insured premises, then the lesser of the cost to recharge
or replace them is paid. Also covered is the loss or damage to covered property if it is caused by an accidental discharge
of chemicals from the extinguisher or extinguisher system. If for some reason a fire extinguisher leaks chemicals causing
damage to covered property then the cost to the damaged property is covered. There is no coverage if the extinguisher
or system discharges during testing or installation. The maximum amount paid under this additional coverage is $5,000
and no deductible applies.
Reward Payments
There is coverage if an individual provides critical information that leads to an actual arrest and conviction of someone
committing a crime that damages covered property. Note that an arrest alone is not sufficient; a conviction must occur.
This verifies that rewards are not paid for hunches or nonproductive leads and that rewards are paid only for valid, useable
information. The maximum amount of reward is $5,000. However payment is limited to the lesser of actual cash value of
the property at the time of loss or the amount determined by the appropriate loss settlement procedure for the returned
property.
A reward is also available for the return of stolen property. Again $5,000 is the maximum amount of reward. The reward
payment is the lesser of two amounts. These are the actual cash value of the property when it is returned, but no more
than the cost to repair or replace it, or the amount determined by the appropriate loss settlement procedure for the
returned property.
Rewards are not paid until the perpetrator is caught and convicted or the stolen property is returned. Not everyone is
eligible to receive a reward. The insured and family members, employees and their family members, employees of law
enforcement agencies or property protection businesses, anyone who had custody of the property at the time of theft,
and any person involved in the crime are all excluded from receiving rewards. The first person other than those listed who



voluntarily provides useful information or returns property receives the reward. Information provided subsequently by
different parties that is essentially the same does not garner a reward.
Computer Fraud
Coverage for computer fraud is also added to the form. Coverage is provided if a computer is used to fraudulently
transfer money, securities, or other property from inside described premises or a bank to a person or place outside those
walls. Unless a different limit is specified, the maximum limit per occurrence is $25,000. Two conditions are added as part
of this coverage. One is that loss or damage starting during the policy period shown and within the coverage territory is
covered. The second is that the coverage territory is anywhere in the world. If a golf club has various courses around the
world, coverage for computer fraud is available for any of those courses.
Money Orders and Counterfeit Money
Money orders and counterfeit money are treated separately from money and securities. Coverage is for the acceptance
of fraudulent funds in exchange for goods or services that are accepted in good faith. Covered funds are money orders
that are not paid upon presentation or counterfeit money received in normal business transactions. For example, a club
member pays for a set of Pingirons with counterfeit bills and the clerk does not know the bills are counterfeit. The loss is
covered under this provision. The limit is $2,500 for any one occurrence unless the declarations specify a different limit.
If an employee knowingly accepts counterfeit funds there is no coverage. The policy does not pay for employees
laundering money for nefarious friends.
Forgery or Alteration
Along with coverage for counterfeit money, coverage is available for forgery or alteration of checks, drafts, promissory
notes, or similar written orders to pay a sum of money. The written orders must be made or drawn by or upon the insured,
made or drawn by one as the insured’s agent, or supposedly made or drawn in such fashion the coverage is triggered. For
example, a golf pro alters a check so that he is paid more than that to which he is entitled. The policy provides defense
costs if the insured refuses any instrument on the basis that it had been forged or altered.
Facsimile signatures are treated the same as handwritten signatures. A substitute check as defined by the Check
Clearing for the 21stCentury Act is treated the same as the original check the copy is replacing. Check Clearing 21 is a
federal law designed to allow banks to handle checks electronically, thus making processing faster and more efficient. As
with the coverage for counterfeit money, the maximum limit is $2,500 unless a different limit is specified.
Outdoor Signs
Outdoor signs that the insured either owns or has care, custody, or control over are covered for direct physical loss. Unless
a different limit is specified the limit is $5,000, and this coverage supersedes any other coverage for signs referenced in
the property policy. (In the Business and Personal Property form, coverage is limited to $1,000 for specified causes of loss
only; those specified causes of loss are fire, lightning, explosion, riot or civil commotion, or aircraft.)
Employee Dishonesty
The employee dishonesty coverage applies to direct loss or damage to business personal property, money, and
securities. The loss must be a result of dishonest acts committed by the insured’s employees, whether they act alone or in
collusion with other persons with the intent to cause the insured to sustain loss or damage and to obtain financial benefit
for an employee or other person, outside of salaries, fees, commissions, and other employment benefits. For example, an
employee works with another employee to siphon funds from the office supply account into their paychecks. While the
money was put into their paycheck it was not part of their normal salary; therefore there is coverage for the loss of those
funds. However, if these employees simply bump up the rate of pay illegally, the salary loss is not covered.
The employee dishonesty coverage is designed to cover actions of ordinary employees and not directors, officers,
managers, or authorized representatives. This eliminates coverage for the Bernie Madoffs of the world and for any named
insured. Also excluded are people to whom the insured has entrusted the property. Indirect loss is excluded. An indirect
loss is a loss stemming from the original loss of funds. For example, an employee embezzles funds for a new product.
Since there is no money for the new product any earnings that the product would have generated are lost. Those funds
are not covered as part of employee dishonesty coverage. Only the actual stolen funds would be covered.
If the insured is legally liable for resulting damages of any type that flow from the employee dishonesty, there is no
coverage for that as well. The cost of verifying the existence or amount of the loss is not covered. Expenses related to
legal action, such as a suit against the proprietors, are not covered. Also, loss or damage that is proven solely by an


inventory computation or a profit and loss computation is not covered. Shrinkage is a known part of any inventory, and
not necessarily a sign of theft by employees. There must be solid evidence of theft and not just proof of disappearance
of items. Items could have been lost, misplaced, or stolen by customers.
The limit for this coverage is $5,000 per occurrence unless a different limit is shown. Loss is covered only as long as it is
sustained through dishonest acts committed during the policy period. If the insured, or any directors, partners, officers,
trustees, or managers not in collusion with the employee learn of any dishonest act committed by the employee in
question before or after that employee was hired by the insured, then any loss caused by that employee is not covered.
This ensures that the insured assumes the risk of hiring a known thief. For example, an employee had stolen from a
previous golf course before being hired by the insured. An officer of the company overhears the employee telling a
co-worker what happened. At this point there is no coverage for that employee since the director now knows of his
larcenous history, even if the act happened several years in the past.
Damage for a covered loss is paid only if it is discovered no less than one year from the end of the policy period. If a
loss that occurred during a prior policy period is discovered in the current policy period, and the insured could have
collected at the time of the loss, then that loss is covered as long as the additional coverage became effective at the time
of cancellation of the prior insurance. There is coverage as long as the loss would have been covered by this additional
coverage had it been in effect when the acts occurred. This coverage is within, and not in addition to, the policy limit, and
is limited to the lesser of the amount recoverable under this coverage as of its effective date or the prior insurance had it
remained in effect.
Ordinance or Law
Ordinance or law, equipment coverage, is the next additional coverage. It is unusual in that most ordinance or law
coverage refers to systems within buildings such as plumbing and wiring. Here, ordinance or law issues are more of an
issue with equipment than with a structure. If a covered cause of loss damages covered equipment, the cost to repair
or replace the equipment as required by law is covered. If the covered equipment is refrigeration equipment, costs to
reclaim the refrigerant as required by law, to retrofit the equipment to a non-CFC refrigerant as required by the Clean Air
Act of 1990, and to recharge the system with a non-CFC refrigerant are paid. The terms of the coverage apply separately
to each piece of covered equipment. Excluded from this coverage are costs to test for, monitor, clean up, remove,
contain, treat, or in any way respond to or assess the effects of pollutants.
If replacement cost provisions apply and the equipment is repaired or replaced, the policy pays the lesser of the amount
actually spent to repair or replace the equipment or the overall policy limit stated in the declarations. If replacement cost
provisions do not apply or the property is not repaired or replaced, then the policy pays no more than the lesser of the
actual cash value of the equipment at the time of loss or the policy limit.
If the equipment should have been modified in order to comply with an ordinance before the loss occurred, and the
named insured failed to comply, the policy will not pay for that loss. The coinsurance additional coverage does not apply
to this section.
Lock Replacement
The cost to repair or replace locks when keys to the premises are stolen or lost is covered to a maximum of $5,000. A $100
deductible applies per occurrence.
Artificially Generated Electrical Current
Damage to computers caused by an artificially generated electrical current is covered. The occurrence must take place
within 1,000 feet of the described premises. A loss is also covered if the loss or damage is caused by or results from the
interruption to the power supply, power surge, black or brownout if the cause of such occurrence took place within 1,000
feet of the described premises. Artificially generated electrical current is manmade electricity; power generated by a utility
falls within this provision.
Guests’ Property
The final additional coverage is for guests’ property. Property of guests’ for which the insured is legally liable is covered
while the property is in a locker or other secured area on premises or at the described premises itself. This is important
coverage because of the volume of clothing and golf equipment of clients that is at the golf course at any given time.
The insured will be paid for reasonable legal expenses involved in a defense if the insured is sued for failure to pay for a
client’s property and if the carrier has given written consent to defend the suit.


While the coverage at first appears to be quite broad, there are nine limiting exclusions. The first is for dishonest or
criminal acts committed by the insured, partners, or members. The second exclusion is for any liability the insured
assumes under any written agreement unless the agreement was entered into before the occurrence of the loss. The next
several exclusions are events that cannot be controlled. Fire, damage to property in a wall safe, damage from spilling,
upsetting or leaking any food or liquid, damage while in the insured’s care for cleaning, and damage to samples or articles carried or held for delivery after sale are excluded. If the insured releases someone from legal liability there is
no coverage. Damage to any vehicle is excluded. This includes equipment, accessories, and property in or on a vehicle
unless the vehicle is a golf cart not licensed for use on public roads. The cart must be owned by a guest but must be in
the care, custody, or control of the insured.
The most paid for any one loss is $25,000 unless a different limit is specified. This is limited to $5,000 per guest per
occurrence, unless a different limit is specified. For example the property of two guests is damaged by fire. One guest’s
property is worth $4,000 and the other guest’s property is worth $7,000. While the $25,000 maximum per occurrence has
not been met, for the second guest the $5,000 per guest maximum has been met, and this individual will only receive
$5,000 for the loss.
Additional conditions are added to the policy for this additional coverage. The first is that bankruptcy of an insured
does not relieve the carrier of its obligation under the policy. The second condition is that covered property is limited to
property of guests while at the described premises. The intent of this condition is to provide coverage for guests only,
and not for the business personal property of the course itself.

Coverage Extensions
The final section of changes to the building and personal property coverage form are changes to coverage extensions.
Personal Effects and Property of Others
The limit for personal effects and property of other coverage extension is increased from $2,500 to $5,000 unless a
different limit is specified.
Valuable Papers and Records (Other Than Electronic Data)
The valuable papers section is removed from the business and personal property form and replaced by different
language. The new language clarifies that coverage is for property where duplicates do not exist, where the property
is either owned by the insured or in the insured’s care, custody and control, and that the damage must be caused by a
covered cause of loss. This extension of coverage includes the cost to research lost information on valuable papers and
records for which duplicates do not exist. The extension does not apply to valuable papers and records that exist as
electronic data.
This extension does not apply to property held as samples or for delivery after sale, or to property in storage away from
the premises. The maximum amount paid per occurrence at each described premises has been raised from $2,500 to
$10,000. For valuable papers and records not at a described premises, the limit is $5,000 per occurrence.
Property Off-premises
Much of this extension replicates that found in the Business and Personal Property form. However, it adds coverage for
computers while in course of transit; coverage is allowed for computers while they are in or on a vehicle. Other property in
or on a vehicle is not covered under this extension.
The most that will be paid for loss or damage under this extension is $10,000 in any one occurrence.
Outdoor Property
Significant differences exist in the extension for outdoor property in the business and personal property form and the golf
course form. The golf course form has greatly expanded coverage. Coverage for fences, retaining walls, trees, shrubs, and
antennas is broken out into separate categories with separate limits per occurrence.
Fences and retaining walls that are not part of a building have coverage up to $50,000. Radio, television, satellite or
other outdoor antennas including masts, towers, and support wiring has coverage up to $5,000. Trees, shrubs and plants
that are not the insured’s stock are covered up to $50,000 with a maximum of $1,000 per tree, shrub, or plant. Lawns that
constitute the course itself, including fairways, greens, tees, or other playing areas, are covered up to $50,000. Roadways



and walks are covered up to $25,000 and ball washers, benches, water coolers, hole markers, cups, flags and tee boxes
are covered up to $15,000. The coverage for ball washers, benches, cooler, markers, and tee boxes is named perils.
Covered causes of loss are fire, lightning, explosion, windstorm, hail, smoke, aircraft or vehicles, riot or civil commotion,
vandalism, sinkhole collapse, volcanic action, falling objects, or the weight of ice, snow, and sleet. Underground sprinkler
systems including their wiring are covered for the same causes of loss up to $20,000. All outdoor coverage limits apply per
occurrence.
Accounts Receivable
Coverage is also extended to accounts receivable. Covered expenses are uncollectible amounts due from customers,
interest charges on any loan needed to offset uncollectible amounts, collection expenses beyond normal collection expenses due to loss or damage, and other reasonable expense incurred in reestablishing the insured records of accounts
receivable. The maximum limit per occurrence at the described premises is $5,000; for accounts receivable not at the
described premises, coverage is limited to $1,500 in any one occurrence.

Changes to the Causes of Loss– Special Form
The endorsement next modifies the Causes of Loss-Special Form, CP 10 30 10 12. Changes are made to the exclusions
section. The form first states that the ordinance and law exclusion does not apply to the ordinance or law equipment
coverage and that the mechanical breakdown exclusion does not apply to damage to computers.
The exclusion for dampness or dryness of atmosphere as a cause of loss for personal property is modified to allow
coverage from these perils if such conditions result from physical damage caused by a covered cause of loss to an air
conditioning unit or system, including equipment and parts, which is part of or used with computers. For example, if fire
damages an air conditioning system and the computer-run temperature controls are damaged, that damage is covered.
Loss or damage caused by marring or scratching is excluded.
If dampness or marring result in a specified cause of loss or building glass breakage, coverage is provided for that
specified cause of loss or glass breakage.

Exclusions
The next section adds new exclusions that pertain to coverage for computers only. These exclusions are preceded by
standard anti-concurrent causation language.
Errors or Omissions
Errors or omissions in processing, recording, or storing electronic data on computers are excluded. However, the insurer
will pay for direct damage caused by resulting fire or explosion if these are covered causes of loss.
Electrical Disturbance
Damage caused by electrical or magnetic injury, disturbance, or erasure of electronic recordings is excluded unless the
damage was caused by lightning. This is typical of most policies that exclude damage caused by artificially generated
electrical energy.
Computer-related Losses
The next exclusion removes coverage for the failure, malfunction, or inadequacy of various computer components to
correctly recognize, process, distinguish, or accept one or more dates or times. This sounds like an exclusion for Y2K
issues, and although the form was not developed until 2009, issues with dates can still occur. These components include
hardware, microprocessors, software, operation systems and related software, networks, or any other components. Also
excluded are other products, services, data, or functions that rely on the listed components in any manner.
Computer Advice or Consultation
Also excluded is any advice, consultation, design, evaluation, maintenance, repair, replacement, or supervision provided
by or for the insured to determine or test for any potential or actual problems described in the computer exclusion.
Since the failure to recognize dates is excluded, advice or consultation on how to determine that a problem exists is
also excluded.



If electrical disturbance, computer related losses, or computer advice or consultation result in a specified cause of loss
or an elevator collision, then coverage applies for that ensuing loss. For example, if an electrical disturbance causes
computers running the elevators to fail, coverage is provided for the damage to the elevators, although there is no
coverage for damage to the computer system that failed because of electrical disturbance.
Exclusion Restrictions
The next section modifies the policy further by customizing the exclusions previously discussed.
Except for the exclusions for governmental action, nuclear hazard, and war and military action, the exclusions in the policy
do not apply to the additional coverage for employee dishonesty. Similar wording applies to the outdoor signs coverage,
except that more exposures are excluded; these additional exclusions are for wear and tear; rust or other corrosion or
decay, including latent defect; and mechanical breakdown. However, if mechanical breakdown results in elevator collision,
the loss or damage caused by that elevator collision is covered.
Similar wording also applies to the valuable papers and records of the business or accounts receivable extension. The
additional exclusions here are extensive. Computer-related losses, computer advice or consultation, wear and tear, rust,
corrosion, deterioration, latent defect, and continuous or repeated seepage or leakage of water, or the presence of
humidity or condensation for over fourteen days is excluded. Also excluded is damage caused by water or other liquids
that leak from plumbing, heating or air conditioning equipment that is caused by freezing unless heat has been
maintained or the pipes had been drained.
The following exclusions also apply to the valuable papers and records and the accounts receivable coverage extensions.
These exclusions are weather conditions that contribute to with an excluded cause under ordinance or law, earth
movement, governmental action, nuclear hazard, utility services, war and military action, water, fungus, wet rot, dry rot
and bacteria, acts or decisions of any person, group, government, or faulty, inadequate or defective planning, zoning,
design, workmanship, construction, repair, materials, remodeling, and maintenance.
Accounts Receivable Additional Exclusions
Some additional exclusions apply only to the accounts receivable coverage. These exclusions are for loss from
alteration, falsification, concealment, or destruction of records that is done with the intent to hide wrongful giving or
taking of money; loss caused by bookkeeping, accounting; or billing errors; and loss that requires an inventory
computation in order to prove the existence of the loss. These are standard exclusions that appear in many policies.
Property in Transit
The final modification to the causes of loss form is that the limit for the property in transit is increased to $10,000 from
$5,000. Higher limits can be obtained if desired.

Changes to the Commercial General Liability Coverage Part
Section III of MS GC 01 modifies the who is an insured and the definitions sections of the commercial general liability
form. Who is an insured is modified to include as insureds any of the named insured course’s members for their liability for
the insured’s activities or activities they perform on the insured’s behalf. Also included as an insured is any person using
or legally responsible for golfmobiles loaned or rented to others by the named insured or the insured’s concessionaires;
the coverage is only for liability related to the use of the golfmobile. (Note that the coverage is only for loaned or rented
golfmobiles; if a member uses his own vehicle to the club, there is no coverage if he runs into someone.)

Definitions
“Computer” and “counterfeit money” are defined and the definitions are straightforward.
“Employee” is defined relative to the coverage for money and securities and employee dishonesty only. Employees who
leave the organization are still considered employees for thirty days after termination of service unless theft or other
dishonest acts were involved. People who are temporarily furnished to or leased to the insured are considered employees
while subject to the insured’s direction. Former employees working as consultants are insureds, as are student interns and
employees of an entity merged with the named insured. Managers, directors, or trustees are considered employees as
long as they are performing duties usually within the scope of employee duties. Those who are not considered employees
are agents, brokers, independent contractors, commission merchants, or similar such agents unless specified in the earlier
section of the definition of employee.


The definition of “forgery” is self-explanatory.
A “golfmobile” is a motorized conveyance designed to carry up to four persons on a golf course for the purpose of
playing golf, and not built or modified after manufacture to exceed a speed of 25 miles per hour on level ground.
The definitions for “manager” and “member” both specify that the person is performing duties for a limited liability
company, not a partnership, nor an incorporated organization, but a limited liability company only.
The definition of “money” is standard policy language.
The definition of “occurrence” varies for different sections of the policy. Under Section I for money and securities only,
“occurrence” is an individual act, the combination of all separate acts, or a series of acts whether or not related that are
committed by a person or persons during the policy period. Under computer fraud and money orders and counterfeit
money, the definition varies slightly to include events along with acts as part of the definition. Under forgery or alteration,
the definition states that occurrence includes an act or acts involving one or more monetary instruments. Regarding employee dishonesty, occurrence means an individual act, the combined total of all separate acts whether or not related, or a
series of acts whether or not related. These must be committed by an employee acting alone or in collusion with others.
The final definition is for “securities” and that is self-explanatory.

Endorsements
The following endorsements are some that are used with MS GC 01.
MS GC DS. This endorsement is the golf courses supplemental schedule and is used in conjunction with the commercial
property coverage part and the commercial general liability coverage part of MS GC 01.
MS GC DS offers the insured the ability to change the limits of insurance in certain categories: money and securities;
computer fraud; money orders and counterfeit money; forgery or alteration; outdoor signs; employee dishonesty; guests’
property; personal effects and property of others; valuable papers and records; property in transit; and the general
category of “other”. Note that the guests’ property coverage has two limits, a per occurrence limit and a per guest limit.
Both limits must be filled out by the insured for coverage to apply.
Hired and nonowned auto liability insurance is another category wherein the insured can choose a limit of insurance
per occurrence. Also, MS GC DS offers direct primary coverage or legal liability coverage for loss or damage to the
autos of the named insured’s guests. The coverage is for collision and other than collision, both of which are subject to a
deductible. And, the coverage is only applicable to premises listed in the schedule.
Fine arts coverage is available on this endorsement and is applicable only to premises shown in the schedule.
Restaurants and refreshment stands—spoilage and food contamination coverage, is the next item in MS GC DS. This
section of the endorsement offers coverage for spoilage, food contamination, extra expense, business income, additional
advertising expenses, and business income and extra expense from dependent properties. The chosen limits of insurance
for these items are on a per occurrence basis.
The final section of MS GC DS lists the forms applicable to specific premises and coverages that the insured has chosen.
MS GC 05. This endorsement applies to loss or damage to guests’ autos (legal liability). With this endorsement, the
insurer promises to pay all sums that the named insured legally must pay as damages for direct physical loss of or
damage to (including any resulting loss of use) autos or auto equipment of guests or invitees while the autos are at a
premises shown in the declarations. Excluded by this endorsement is liability resulting from any agreement by which the
named insured accepts responsibility for loss or damage to autos left in its care; also excluded is loss or damage due to
theft or conversion caused in any way by the named insured or any other insured. Closely related to this endorsement is
MS GC 06 which provides coverage for loss or damage to guests’ autos, but on a direct primary basis; so, with MS GC 06,
there is no need for the named insured to be legally liable for the damage or loss to the autos since the insurance
provided by this endorsement is primary insurance. MS GC 06 does not apply to loss or damage due to theft or
conversion caused in any way by the named insured or employees. Also excluded is loss or damage to property that is
otherwise paid under the personal property of others section of the building and personal property coverage form.
MS GC 09. This endorsement modifies insurance provided under the following: the commercial general liability coverage


part; the commercial property coverage part; the business income and extra expense coverage form; and the causes of
loss—special form.
MS GC 09 adds the following coverages to the commercial property coverage form: brands and labels, and spoilage
coverage.
Under brands and labels coverage, this endorsement states that if branded or labeled merchandise that is covered
property is damaged by a covered cause of loss, the insurer may take all or any part of the property at an agreed or
appraised value. The most that will be paid under this additional coverage in any one occurrence is $25,000. Under the
spoilage coverage, MS GC 09 will pay for the loss of perishable stock caused by: a change in temperature or humidity
resulting from mechanical breakdown or failure of refrigeration; contamination by a refrigerant; or power outage. The
most paid here for loss in any one occurrence is $25,000 unless a different limit of insurance is shown in the declarations.
The value of the perishable stock will be the selling price less discounts and expenses the named insured would otherwise
have had. Perishable stock means property maintained under controlled conditions for its preservation and susceptible to
loss or damage if the controlled conditions change.
MS GC 09 changes the business income and extra expense coverage form in the following manner. The insurer will pay
the actual loss of business income that the named insured sustains and extra expense incurred due to physical loss or
damage at the premises of a dependent property caused by or resulting from any covered cause of loss. However, this
coverage does not apply when the only loss to dependent property is loss or damage to electronic data, including destruction or corruption of electronic data. The most the insurer will pay under this additional coverage for loss in any one
occurrence is $10,000 unless a different limit of insurance is shown in the declarations. Dependent property means property operated by others whom the named insured depends on to deliver materials or services; this does not include water
supply services, power supply services, wastewater removal services, or communication supply services. The term does
include others who accept the products or services of the named insured, those who manufacture products for delivery to
the customers of the named insured, or those who attract customers to the named insured’s business.
Another change in the business income coverage is that MS GC 09 states that if the named insured’s business at the
described premises is ordered closed by the board of health or any other governmental authority as a result of the
discovery or suspicion of food contamination, the insurer will pay the following: extra expense, actual loss of business
income sustained due to the necessary suspension of operations, and additional advertising expenses incurred to restore
the reputation of the named insured. MS GC 09 will pay up to $10,000 for extra expense and $10,000 for business income,
and up to $5,000 for additional advertising expenses unless different limits are shown in the declarations. MS GC 09 will
not pay any fines or penalties levied against the named insured.
As for changes to the causes of loss form, MS GC 09 states that the utility services exclusion does not apply to business
income and extra expense from dependent properties coverage or to the spoilage coverage. Also, the limitation
pertaining to payment for loss of or damage to fragile articles does not apply with respect to the breakage of chinaware,
and the special limit for furs, fur garments and garments trimmed with fur is increased to $10,000. Finally, this
endorsement declares that the insurer will not pay for loss or damage caused by or resulting from any virus, bacterium,
or other microorganism that induces or is capable of inducing physical distress, illness, or disease.
MS GC 09 adds services errors and omissions coverage to the commercial general liability part. Under this coverage, the
insurer will pay those sums the insured becomes legally obligated to pay as damages because of an error or omission by
the named insured or any employees in providing facilities, goods, or services. Such coverage for errors and omissions
applies only to liability arising out of the named insured’s restaurant and refreshment stand operations. The most the
insurer will pay for the sum of all damages is $10,000 in any annual period. This limit of insurance applies separately to
each premises described in the declarations. There is a $250 deductible applicable to this coverage. This insurance does
not apply to intentional error or intentional failure to provide any services, nor to bodily injury, property damage, or
personal and advertising injury, nor to discrimination.
Merchandise withdrawal expenses coverage is also added by MS GC 09. The insurer will reimburse the named insured
for such expenses incurred (up to $25,000) because of merchandise withdrawal, that is, the recall or withdrawal from the
market or from use by any other person or organization of the products of the named insured because of defects or
product tampering. This coverage does not apply to expenses arising out of the failure of the product to accomplish its
intended purpose, to copyright, patent or trademark infringements, to transformation of a chemical nature, deterioration
of the product, or decomposition of the product, or to expiration of the designated shelf life of the product. Also
excluded are the costs of regaining goodwill, market share, revenue or profit or the costs of redesigning the product,
or defense costs from a lawsuit against the named insured.


MS GC 10. This endorsement is for pesticide or herbicide applicator coverage, and provides limited relief from the
pollution exclusion. This coverage applies only if pesticides or herbicides are applied by an insured on golf course
premises the named insured owns, occupies, leases, or rents, and if the application meets all standards of applicable
statutes, ordinances, regulations, or license requirements of any federal, state, or local government.
MS GC 12. Scheduled mobile equipment is covered under this endorsement. MS GC 12 pays for direct physical loss of
or damage to mobile equipment whether owned by the named insured or owned by others but in the care, custody, or
control of the named insured. The schedule on MS GC 12 allows the insured to choose the limit of insurance and the
deductible amount (per occurrence). The amount payable under this additional coverage is additional insurance over the
insurance available for business personal property.
MS GC 13. This applies to a hole-in-one prize indemnification. The endorsement declares that the insurer will reimburse
the named insured for the cost of a prize awarded because of a prize indemnification event. The endorsement’s schedule
provides space for the limit of insurance, the prize amount, and information about the event or contest. A prize
indemnification event means an amateur hole-in-one event or other contest held by the insured on the premises shown
in the declarations, where a monetary or otherwise valuable prize is given to the winner of the event, and where specific
award procedures are followed. This term does not include any contest or prize where a winner or a prize giveaway is
guaranteed.

For more information, or to begin your free trial:

• Call: 1-800-543-0874

• Email: customerservice@SummitProNets.com

• Online: www.fcandslegal.com
FC&S Legal guarantees you instant access to the most authoritative and comprehensive
insurance coverage law information available today.
This powerful, up-to-the-minute online resource enables you to stay apprised
of the latest developments through your desktop, laptop, tablet, or smart phone
—whenever and wherever you need it.



Golf Course Endorsement (ISO Form) from FC&S Legal

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Golf Course Endorsement (ISO Form) from FC&S Legal