1. Forms
2. CG
3. CG-20-24

What the form is

The CG 20 24 is an endorsement to the standard Commercial General Liability (CGL) policy. Its primary purpose is to extend liability coverage to the owner(s) of land, or other parties with an interest in the land, that the named insured has leased. By adding the landowner as an additional insured, this endorsement protects them from liability that might arise due to the named insured's (the tenant's) operations or occupancy of the leased land. Importantly, recent revisions (such as the 2019 edition) have clarified the scope of coverage. The endorsement typically states that coverage for the additional insured applies only with respect to 'bodily injury' or 'property damage' caused, in whole or in part, by the named insured or by those acting on behalf of the named insured in the performance of the named insured's ongoing operations for the additional insured on the land designated in the schedule. The schedule heading was also changed in 2019 from 'Designation Of Premises (Part Leased To You)' to 'Designation Of Land (Part Leased To You)' to better reflect the endorsement's design.

Classes of business it applies to

This endorsement is relevant for any business or organization that leases land from a third party for its operations. Examples include:

• A manufacturing company leasing a parcel of land for outdoor storage of materials.
• A contractor leasing land to set up a temporary office or staging area for a construction project.
• A retail business leasing an adjacent lot from a different owner for customer parking.
• An agricultural business leasing farmland from a landowner.
• A telecommunications company leasing a small piece of land to place a cell tower.

Special considerations

There are several important points to consider when using the CG 20 24 endorsement:

• Contractual Requirement: Often, the lease agreement between the landowner (lessor) and the tenant (lessee/named insured) will contractually obligate the tenant to add the landowner as an additional insured on their CGL policy. This endorsement helps fulfill that requirement.
• Scope of Coverage: Coverage for the landowner is not unlimited. It is specifically tied to liability arising from the named insured's actions or the portion of the land leased to the named insured. The 2019 revisions emphasized that coverage is for the additional insured's vicarious liability or for contributory negligence, not for the additional insured's sole negligence.
• Designation of Land: The schedule on the endorsement must accurately describe the specific land that has been leased to the named insured. Ambiguity can lead to coverage disputes.
• Exclusions in CGL: The underlying CGL policy's exclusions will still apply to the coverage provided to the additional insured.

Key information for agents and underwriters

For Agents:

• Always review lease agreements to identify requirements for additional insured status and ensure the CG 20 24, if used, meets those requirements.
• Confirm that the 'Designation Of Land' in the schedule is precise and complete.
• Explain the limitations of the coverage to both the named insured and the additional insured, particularly that it does not cover the landowner's sole negligence.

For Underwriters:

• Assess the nature of the named insured's operations on the leased land to understand the potential liability exposure for the landowner.
• Consider the terms of the lease agreement and the relationship between the named insured and the landowner.
• The pricing for this endorsement is usually minimal, but the underlying risk of the named insured's operations is the primary concern.
• Be aware that the intent of the 'caused, in whole or in part' language is to provide coverage for the additional insured's vicarious liability for the named insured's acts or omissions, or for the additional insured's liability due to contributory negligence alongside the named insured.