What it does
CG 20 30 adds as an additional insured any owner, co-owner, joint venture party, mining partner or LLC having a nonoperating working interest in an oil or gas lease of which the named insured is the operator, but only for liability arising out of that interest. It also lifts the base form's limitation on partnerships, joint ventures and LLCs not shown as named insureds, to the extent coverage applies under this endorsement.
Who needs it
Operators of oil and gas leases with working interest partners under joint operating agreements.
Key provisions and limits
- No schedule; partners qualify by their working interest.
- 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
- Underwriters will ask about well count, drilling versus production, and pollution controls; pollution remains excluded unless separately covered.
