What it does
CG 20 05 adds the scheduled person or organization as an additional insured, but only for liability arising out of (1) their financial control of the named insured or (2) premises they own, maintain or control while the named insured leases or occupies them.
Who needs it
Operating companies owned by a holding company, private equity sponsor or individual investor, and businesses occupying property owned by their controlling shareholder.
Key provisions and limits
- Excludes structural alterations, new construction and demolition operations performed by or for the additional insured.
- Coverage applies only to the extent permitted by law.
- Contract-based limits: coverage is no broader than any contract requires, the most paid for the additional insured is the lesser of the contract-required amount or the policy limits, and the endorsement does not increase limits.
Quoting and selling notes
- Use when the controlling party is not otherwise a named insured; many groups instead schedule all affiliated entities as named insureds.
- Lenders and landlords that are not controlling interests are better handled with CG 20 18 or CG 20 11.
