What it does
CG 20 28 adds the scheduled lessor as an additional insured for "bodily injury", "property damage" or "personal and advertising injury" caused, in whole or in part, by the named insured's maintenance, operation or use of equipment leased to it by that lessor.
Who needs it
Equipment renters, especially contractors renting aerial lifts, earthmoving equipment and cranes, and manufacturers leasing production machinery.
Key provisions and limits
- Excludes any "occurrence" after the equipment lease expires.
- Schedule names the lessor.
- 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 insureds that rent equipment from many lessors, CG 20 34 grants status automatically when the lease requires it.
- Rental agreements often also require a waiver of subrogation (CG 24 04) and primary wording (CG 20 01).
- Mobile equipment that is an "auto" belongs on the auto policy.
