The Montrose Exclusion

Loss in Progress and Insurance Claims,

The ISO endorsement, CG 00 57, addresses the issue of “loss-in-progress” without reference to known loss or known events or known liability. Instead, the endorsement imposes coverage restrictions with respect to known injury or damage. Under CGL forms issued before CG 00 57, the policy’s insuring agreement places two conditions on how and when covered bodily injury and property damage must occur. First, the injury or damage must be caused by an occurrence that takes place within the coverage territory. Second, the bodily injury or property damage itself must occur during the policy period.

CG 00 57 adds a third condition to section b of the Coverage A insuring agreement.

Prior to the policy period, no insured listed under Paragraph 1. of Section II-Who Is an Insured and no “employee” authorized by you to give or receive notice of an “occurrence” or claim, knew that the “bodily injury” or “property damage” had occurred, in whole or in part.