What does a known damage endorsement on a CGL policy specifically cover?

A known damage endorsement on a Commercial General Liability (CGL) policy is designed to provide coverage for specific ongoing damages and liabilities that the insured is already aware of at the time they purchase or renew their insurance policy. This type of endorsement is essential for protecting businesses from claims related to situations that have already arisen, which could potentially create significant financial exposure if not addressed.

The reason ongoing damages and liabilities are covered is that the insured has acknowledged these issues exist and is seeking to mitigate their risks by ensuring they have coverage in place that extends to those known problems. This endorsement allows businesses to continue to operate without the fear of unexpected financial burdens due to claims associated with known events or damages.

Future damages refer to incidents that occur after the endorsement is active, while previously reported injuries would typically relate to claims that have been formally submitted and recognized but may not necessarily fall under the terms of a known damage endorsement. Claims that have been denied in the past cannot be retroactively covered by this endorsement, reinforcing the need for businesses to adequately disclose known issues during the insurance application or renewal process.