Commercial General LiabilityExclusionE&O Risk: Critical

CG 21 46: Exclusion – Abuse Or Molestation

Current Edition: 04 13 · Full ID: CG 21 46 04 13

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What Is CG 21 46?

This endorsement removes all coverage for claims related to abuse or molestation. This includes the actual acts, the failure to supervise or prevent abuse, negligent hiring of an abuser, and failure to report known abuse. For organizations that serve vulnerable populations — children, elderly, disabled individuals — this creates an enormous coverage gap.

Technical Summary: Excludes bodily injury, property damage, or personal and advertising injury arising out of: (1) the actual or threatened abuse or molestation by anyone of any person while in the care, custody, or control of any insured; (2) the negligent employment, investigation, supervision, reporting to authorities, or failure to so report relating to abuse or molestation. The exclusion is comprehensive — it removes coverage for both the perpetrator and the organization's negligence in failing to prevent or respond to the abuse.

What CG 21 46 Covers

No coverage additions documented.

What CG 21 46 Does NOT Cover

  • -Bodily injury, property damage, or personal injury arising from actual or threatened abuse or molestation
  • -Negligent hiring of individuals who commit abuse
  • -Negligent supervision allowing abuse to occur
  • -Failure to investigate reports or allegations of abuse
  • -Failure to report known or suspected abuse to authorities
  • -Claims by third parties alleging the insured organization enabled or failed to prevent abuse

Key Provisions

  • The exclusion covers both direct perpetration and organizational negligence (negligent hiring, supervision, reporting)
  • Applies to 'any person' while in the care, custody, or control of any insured — very broad scope
  • Eliminates both defense and indemnity obligations for abuse-related claims
  • Claims of negligent supervision or failure to report are excluded alongside the underlying abuse claim

Edition History

07 9804 13 (current)
07 9804 13minor
  • Updated to align with 2013 CGL program revisions
  • Clarified scope of 'care, custody, or control' language
  • Updated cross-references to current CGL form structure

Common Mistakes & E&O Warnings

Agents who place coverage for organizations serving vulnerable populations must verify whether CG 21 46 is attached. Abuse and molestation claims can result in seven-figure verdicts, and the absence of CGL coverage — including defense costs — can be financially devastating to the insured. The agent's E&O risk is acute because the duty to identify the client's exposure and ensure appropriate coverage is fundamental. Organizations in childcare, education, healthcare, religious institutions, foster care, residential treatment, and camps should be specifically checked for this endorsement at every renewal.

  • Believing this exclusion only applies to the person committing the abuse — it also excludes organizational negligence claims
  • Assuming that if the organization has background check policies, the exclusion does not apply — it does regardless
  • Not realizing the exclusion removes DEFENSE coverage — the insured must hire its own attorney for abuse claims
  • Assuming general umbrella/excess policies will cover the gap — most follow form and also exclude abuse/molestation
  • Failing to recommend standalone abuse and molestation liability coverage for at-risk organizations

Related Endorsements

Frequently Asked Questions

What does CG 21 46 exclude?

CG 21 46 excludes all claims related to abuse or molestation, including the abusive acts themselves, negligent hiring of abusers, failure to supervise, and failure to report abuse to authorities. Both defense and indemnity are eliminated.

Which organizations are most affected by CG 21 46?

Any organization serving vulnerable populations: daycare centers, schools, religious organizations, youth camps, healthcare facilities, foster care agencies, and residential treatment facilities. These organizations should obtain standalone abuse and molestation liability coverage.

Can standalone abuse and molestation coverage replace what CG 21 46 excludes?

Yes. Standalone abuse and molestation liability policies are available and should be obtained by any organization with exposure to these claims. The standalone policy typically covers defense costs, settlements, and judgments for abuse-related claims.

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