1. Forms
2. CG
3. CG-20-07

What the Form Is

The CG 20 07 endorsement is designed for the Commercial General Liability (CGL) policy. Its primary purpose is to extend additional insured status to engineers, architects, or surveyors who have been engaged by the named insured. This means that these professionals are provided with liability coverage under the named insured's CGL policy. However, a crucial aspect of this endorsement is that it excludes coverage for the professional liability of these engineers, architects, or surveyors. The coverage provided to the additional insured is typically for bodily injury, property damage, or personal and advertising injury liability that arises out of the named insured's work or premises for which the professionals are providing their services. The coverage afforded to the additional insured only applies to the extent permitted by law and, if required by a contract, the coverage and limits will only apply to the extent required in that contract or agreement.

Classes of Business It Applies To

This endorsement is most commonly used in industries and business operations where engineers, architects, or surveyors are hired for their expertise, particularly in:

• Construction: A general contractor (named insured) hiring an architectural firm to design a project or a surveying company to map a site would use this endorsement to add them as additional insureds. For example, if a visitor to a construction site is injured due to the contractor's negligence in maintaining a safe walkway (not due to a design flaw by the architect), this endorsement could provide coverage to the architect if they are named in a lawsuit.
• Real Estate Development: Developers engaging these professionals for planning and overseeing projects.
• Manufacturing or Industrial Operations: Companies hiring engineers for plant design or process improvements might be required to add them as additional insureds.

Essentially, any business that engages these types of professionals and is contractually obligated to provide them with additional insured status on their CGL policy would utilize this form.

Special Considerations

• Exclusion of Professional Liability: This is the most significant consideration. The CG 20 07 explicitly states that it does not cover bodily injury, property damage, or personal and advertising injury arising out of the rendering of or failure to render any professional services by the engineer, architect, or surveyor. These professionals need their own separate Professional Liability (Errors & Omissions) insurance for such exposures.
• "Engaged By You": The endorsement specifies that the engineers, architects, or surveyors must be "engaged by you" (the named insured). If these professionals are engaged by another party (e.g., the project owner, when the named insured is a subcontractor), a different endorsement, such as CG 20 32 (Additional Insured - Engineers, Architects or Surveyors Not Engaged by the Named Insured), would be necessary.
• Contractual Requirements: The use of this endorsement is often driven by contractual agreements where the named insured is required to provide additional insured status to these professionals. The extent of coverage provided to the additional insured may be limited by the terms of this contract and by applicable law.
• Historical Context: This form was reportedly withdrawn from use by ISO in 2012 but then reinstated in 2013. During its withdrawal, a Texas-specific endorsement (CG 33 91) was introduced but later withdrawn when CG 20 07 returned.
• "Caused, in whole or in part, by" Language: Many additional insured endorsements, particularly more recent editions, include language clarifying that coverage for the additional insured applies only with respect to liability caused, in whole or in part, by the named insured's acts or omissions or the acts or omissions of those acting on the named insured's behalf. This is intended to prevent coverage for the additional insured's sole negligence.

Key Information for Agents and Underwriters

• Risk Assessment: Underwriters should evaluate the scope of work performed by the named insured and the specific role of the engineers, architects, or surveyors being added. The primary exposure covered is vicarious liability attributed to the named insured's actions, not the professional's independent errors.
• Clarify Coverage Limitations: It is crucial for agents to clearly explain the professional liability exclusion to both the named insured and the professionals being added as additional insureds. Misunderstanding this limitation can lead to significant coverage gaps.
• Verify Contractual Obligations: Agents should advise insureds to carefully review contracts requiring this endorsement to ensure it aligns with the policy's provisions and doesn't create unintended coverage obligations. The policy language regarding limits applying "to the extent required in the contract or agreement" needs careful consideration.
• Pricing: While there might be a premium associated with adding an additional insured, the focus should be on the potential for increased defense obligations and the nature of the underlying operations.
• Interaction with Other Forms: Understand when CG 20 07 is appropriate versus CG 20 32 (for professionals not engaged by the named insured) or CG 20 31 (which serves a similar purpose for Owners and Contractors Protective Liability policies).