1. Forms
2. CG
3. CG-20-11

What the form is

The CG 20 11 is an endorsement to the Commercial General Liability (CGL) policy used to provide additional insured status to the managers or lessors (landlords) of premises that are leased to the named insured (the tenant). Its purpose is to protect the landlord from liability that arises out of the tenant's operations or occupancy of the leased premises. The coverage granted to the additional insured is specifically tied to the premises shown in the endorsement's schedule and is often limited to liability caused, in whole or in part, by the named insured or those acting on their behalf.

Classes of business it applies to

This endorsement is widely used across various industries whenever a business leases commercial property. Examples include:

• Retail stores leasing space in a shopping mall.
• Professional offices (e.g., law firms, accounting practices) leasing an office suite.
• Restaurants operating in a leased building.
• Manufacturing or warehousing businesses leasing industrial space.
• Any tenant whose lease agreement requires them to name the landlord as an additional insured on their general liability policy.

Special considerations

• Scope of Coverage: Coverage for the additional insured (landlord) is limited to liability arising from the ownership, maintenance, or use of the specific part of the premises leased to the named insured and designated in the schedule. It does not cover the landlord for their sole negligence in areas outside the leased premises or for activities unrelated to the tenant's occupancy.
• Exclusions: The endorsement typically excludes coverage for structural alterations, new construction, or demolition operations performed by or on behalf of the landlord (the additional insured).
• Cessation of Tenancy: Coverage for the additional insured under this endorsement generally ceases once the named insured is no longer a tenant in the specified premises.
• Contractual Requirements: If the additional insured status is required by a contract or lease agreement, the insurance afforded to the additional insured will often not be broader than what the named insured is required by that contract or agreement to provide. The limits of insurance are also subject to this provision and will not exceed the policy limits.
• Premises Designation: It is crucial to accurately list the specific premises being leased in the endorsement schedule. Failure to do so could jeopardize coverage.
• "Caused, in whole or in part, by" Language: Newer editions of this endorsement (e.g., 04 13 and 12 19) often state that coverage for the additional insured applies to liability for 'bodily injury', 'property damage', or 'personal and advertising injury' 'caused, in whole or in part, by' the named insured or those acting on their behalf. This language is generally considered more restrictive than older 'arising out of' wording, intending to limit coverage to instances where the named insured's actions contribute to the loss.

Key information for agents and underwriters

• Verification: Confirm that the entity to be added as an additional insured is genuinely the manager or lessor of the premises leased to the named insured.
• Lease Agreement Review: It's advisable to review the lease agreement to understand the insurance requirements imposed on the tenant, ensuring the endorsement aligns with these obligations. Pay attention to any specific wording or limit requirements.
• Premises Schedule: Double-check that the 'Designation Of Premises' in the schedule is precise and complete.
• Risk Assessment: The underwriter should assess the nature of the named insured's operations on the leased premises to understand the potential liability exposures for the landlord.
• Coverage Limitations: Clearly explain the limitations of the endorsement to both the named insured and the additional insured, particularly the exclusions and the scope of coverage tied to the leased premises and the named insured's actions.
• Interaction with Other Endorsements: Understand how this endorsement interacts with other policy provisions and endorsements. For example, it does not typically provide completed operations coverage for the landlord; a separate endorsement like CG 20 37 might be needed if that coverage is required for the landlord related to the tenant's work.
• Policy Limits: Remind all parties that adding an additional insured does not increase the overall policy limits. The named insured and all additional insureds share the existing limits of insurance.