What it does
CG 20 12 adds the state or governmental agency, subdivision or political subdivision shown in the schedule as an additional insured, but only for operations performed by or on behalf of the named insured for which that authority has issued a permit or authorization.
Who needs it
Contractors working in public rights-of-way, sign and awning installers, event organizers and any business obtaining a permit whose conditions require AI status for the issuing body.
Key provisions and limits
- Excludes injury or damage arising out of operations performed for the federal government, state or municipality (that is, work under a public contract rather than a permit).
- Excludes bodily injury or property damage within the products-completed operations hazard.
- 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
- For public works contracts, use an owners/contractors AI form (CG 20 10 or CG 20 26) instead; this form does not cover operations performed for the government.
- For permits relating to premises (signs, awnings, sidewalk vaults, elevators), use CG 20 13.
- OCP and liquor coverage parts have their own versions: CG 29 35 and CG 34 03.
