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3. CG-20-10

CG 20 10: Additional Insured - Owners, Lessees Or Contractors - Scheduled Person Or Organization

The CG 20 10 is an endorsement to a Commercial General Liability (CGL) policy that extends insurance coverage to a specific person or organization (the "additional insured") listed on the endorsement. This coverage applies to liability for "bodily injury," "property damage," or "personal and advertising injury" that is caused, in whole or in part, by the acts or omissions of the named insured (the policyholder) or those acting on the named insured's behalf. Crucially, this coverage is typically limited to liability arising out of the named insured's ongoing operations performed for the additional insured at a designated location. It does not generally cover liability arising from the named insured's completed operations.

Classes of Business and Real-World Examples

This endorsement is most commonly used in the construction industry. Here are some scenarios:

• A general contractor (the additional insured) hires a subcontractor (the named insured) to perform electrical work on a new building. The general contractor would typically require the subcontractor to add them as an additional insured using the CG 20 10. If a visitor to the construction site is injured due to the subcontractor's active electrical work (e.g., tripping over an unsecured cable), this endorsement would provide coverage to the general contractor for their vicarious liability.
• A property owner (the additional insured) hires a roofing contractor (the named insured) to replace the roof on their commercial building. During the roofing project, if the contractor negligently drops materials causing damage to a neighboring property, the CG 20 10 on the roofer's policy would extend coverage to the property owner for liability stemming from the roofer's ongoing work.
• A lessee of a commercial space (the additional insured) hires a contractor (the named insured) to renovate the interior. If the contractor's ongoing renovation activities cause injury to a customer of the lessee, the CG 20 10 could provide coverage to the lessee.

Essentially, any situation where one party (owner, lessee, or contractor) is performing work for another, and that other party wants protection from liability arising from the first party's ongoing activities, the CG 20 10 is a relevant endorsement.

Special Considerations

• Ongoing Operations Only: This is a critical limitation. Once the named insured's work for the additional insured is completed, coverage under the CG 20 10 for that additional insured generally ceases. For example, if the subcontractor in the first example finishes the electrical work, and a month later a fire occurs due to faulty wiring (a completed operations exposure), the CG 20 10 would likely not provide coverage to the general contractor for that incident. To cover this gap, a separate endorsement, such as the CG 20 37 (Additional Insured – Owners, Lessees Or Contractors – Completed Operations), would be needed.
• "Caused, in whole or in part, by": This language, present in more recent editions of the CG 20 10, means the named insured's actions or omissions must be a cause of the injury or damage for the additional insured to have coverage. It generally aims to prevent coverage for the additional insured's sole negligence.
• Scheduled Person or Organization: The CG 20 10 requires the specific person or organization to be named (scheduled) on the endorsement. This differs from "blanket" additional insured endorsements (like CG 20 33 or CG 20 38) which can provide automatic status if certain contractual requirements are met.
• No Written Contract Required (by the form itself): Unlike some other additional insured endorsements (e.g., CG 20 33), the CG 20 10 itself does not explicitly require a written contract to be in place between the named insured and the additional insured for coverage to apply. However, the underlying business relationship and the requirement to provide additional insured status usually stem from a contract.
• Edition Dates Matter: The language and coverage provided by ISO forms like the CG 20 10 can change with different edition dates. For instance, pre-1985 versions of the CG 20 10 provided broader coverage, including for "your work," which encompassed both ongoing and completed operations. Later editions narrowed the scope to "ongoing operations." It's crucial to review the specific edition date of the endorsement being used.
• Extent Permitted by Law / Contractual Limitations: More recent editions of the CG 20 10 may include provisions stating that coverage will not be broader than what is required by contract or permitted by law. This means if a state has anti-indemnity statutes, or if the contract specifies narrower coverage, the endorsement may be limited accordingly.

Key Information for Agents and Underwriters

• Risk Assessment: The primary risk consideration is the nature of the named insured's operations being performed for the additional insured. Higher-risk activities (e.g., roofing, excavation) will warrant more scrutiny. The underwriter should also consider the additional insured's own operations and potential for shared liability.
• Pricing: The cost to add a CG 20 10 can vary by insurer. Some may charge a flat fee, while for others it might be included in the base premium, especially if "blanket" additional insured coverage is already part of the policy. The perceived risk associated with the additional insured and the project will influence pricing.
• Coverage Gaps: The most significant gap is the lack of completed operations coverage. Agents must counsel clients, particularly those requesting additional insured status (like general contractors or project owners), about this limitation and recommend the CG 20 37 if post-completion coverage is desired.
• Underwriting Guidelines:
  • Underwriters will want to know the relationship between the named insured and the additional insured, the specific project or operations involved, and the location(s) of the work.
  • The claims history of both the named insured and the potential additional insured might be reviewed.
  • Contractual requirements for insurance should be reviewed to ensure the endorsement, if issued, aligns with those requirements, especially concerning limits and scope of coverage.
  • Be aware of attempts to secure coverage for the additional insured's sole negligence, which this endorsement (especially later editions) is generally designed to avoid.
• Clarity of "Ongoing Operations": Disputes can arise over when operations are truly "ongoing" versus "completed." For example, if a contractor is called back for minor punch-list items, are their operations still "ongoing" for the purpose of this endorsement? Clear communication and understanding of the project scope are important.
• Interaction with Other Endorsements: Understand how the CG 20 10 interacts with other endorsements on the policy, such as primary and non-contributory endorsements or waivers of subrogation, which are often requested in conjunction with additional insured status.