1. Forms
2. CG
3. CG-00-37

What the Form Is

The CG 00 37 Products/Completed Operations Liability Coverage Form (Occurrence Version) is an insurance policy form developed by ISO that provides standalone liability coverage specifically for the products-completed operations hazard. This means it covers bodily injury and property damage that occurs away from the insured's premises and arises out of the insured's products once they are no longer in the insured's possession, or out of the insured's work once it has been completed or abandoned. Being an "occurrence" form, coverage is triggered if the bodily injury or property damage occurs during the policy period, irrespective of when the claim is actually made.

Classes of Business It Applies To

This form is suitable for a wide range of commercial exposures, particularly those with significant liability risks associated with their products after sale or their work after completion. It is often utilized when:

• The products-completed operations exposure is considered too high-risk to be included in a standard Commercial General Liability (CGL) policy.
• An insurer is unwilling to provide products-completed operations coverage under the broader CGL form.
• A business specifically wants or needs separate limits for this exposure.

Real-world examples include:

• Manufacturers of consumer goods, industrial equipment, or components.
• Contractors (e.g., construction, plumbing, electrical) after they have finished a project.
• Restaurants or food product companies for liabilities arising from the food consumed.
• Distributors and retailers for the products they sell.

Special Considerations

• Occurrence Trigger: The key to coverage is that the bodily injury or property damage must occur during the policy period. This can be beneficial for long-tail claims that may not be discovered or reported for years after the product was sold or work was completed.
• Standalone Coverage: It is typically used when products-completed operations coverage is excluded from the insured's primary CGL policy, often through an endorsement like CG 21 04 (Exclusion–Products/Completed Operations Hazards).
• Separate Limits: The form has its own Aggregate Limit for products-completed operations and an Each Occurrence Limit. These limits are dedicated solely to products-completed operations claims and do not erode or share limits with other coverages the insured might have (like premises/operations coverage under a separate CGL).
• Primary Basis: This coverage is often offered on a primary basis for products-completed operations claims.
• No Coverage for Ongoing Operations: This form does not cover liability arising from ongoing operations on the insured's premises or at a job site before work is completed; that exposure is typically covered by a standard CGL policy.

Key Information for Agents and Underwriters

• Risk Assessment: Underwriters must meticulously evaluate the specific nature of the insured's products (design, manufacturing process, warnings, intended use) and completed operations (quality of workmanship, materials used, contractual obligations). Past claims history is a critical indicator.
• Pricing: Premiums will be based on the type of products or work, sales volume or receipts, the perceived hazard level, limits of liability, and any deductible.
• Potential Gaps: Agents should ensure that if this form is used, there are no unintended gaps between it and the insured's other liability coverages. For example, ensuring the definition of "products-completed operations hazard" aligns with the insured's exposures.
• Exclusions: While the CG 00 37 is specific to products-completed operations, it still contains various exclusions (e.g., damage to the insured's own product or own work, recall expenses, certain contractual liability). It's important to note that some exclusions typically found in a standard CGL, like those for aircraft, auto, or watercraft, and a general pollution exclusion, are not present in the CG 00 37, as the CGL's exclusions for these often have exceptions for products-completed operations. However, specific pollution exposures related to products might still be a concern and could require separate pollution liability coverage depending on the risk. A total pollution exclusion endorsement (CG 21 98) can be added to this form.
• Supplementary Payments: The form includes provisions for supplementary payments, which cover costs like defense expenses, pre-judgment interest, and certain other expenses related to a claim or suit, in addition to the policy limits.