Specifics On Additional Insured Endorsements For Contractors
2009 February 2
“The three most commonly used additional insured endorsements in construction relationships are the Insured-Owners, Lessees Or Contractors-Scheduled Person Or Organization (CG 20 10); Additional Insured Owners, Lessees Or Contractors-Automatic Status when Required In Construction Agreement With You (CG 20 33); and Additional Insured-Owners, Lessees Or Contractors-Completed Operations (CG 20 37).”
All three of these General Liability additional insured endorsements have undergone some changes under the various edition dates since 11/85. Most of these changes have resulted in significant reductions in coverage for additional insureds.
The 07/04 versions of CG 20 33 and CG 20 10 are essentially the same as far as language except for the wording in CG 20 33 states that additional insured status ends when the work contracted for is completed (no completed operations coverage is extended to the additional insured). CG 20 10 arrives at the same result by limiting coverage to “ongoing operations”.
The 07/04 version of CG 20 37 states that additional insured status is approved only when the entity is scheduled. Conversely, the 07/04 CG 20 33 states that any entity requiring additional insurance status via a contract is covered.
The 07/04 edition of all three additional insured endorsements limits coverage to the additional insured’s vicarious liability for the actions of the named insured.
A basis for conflict between insurance professionals and general contractors (and their lawyers) has been the 11/85 edition of the CG 20 10. A contract requiring the CG 20 10 11 85 “or its equivalent” is still being requested even though the general contractors and their lawyers have admitted that this option does not exist and have instead asked for equivalent protection. “Equivalent” protection is not provided by the 07/04 version of CG 20 10 coupled with the CG 20 37. ISO does not have comparable wording. A few of the smaller regional carriers may have some proprietary company form that provides something similar.
Source Insurance Journal-National Region January 12, 2009