1. Forms
2. CG
3. CG-20-31

What the form is

The CG 20 31 is an endorsement used with the Insurance Services Office (ISO) Owners and Contractors Protective Liability (OCP) Coverage Part. Its primary purpose is to add engineers, architects, or surveyors who have been engaged by the named insured (typically the property owner or a general contractor for whom a project is being done) as additional insureds under the OCP policy. This endorsement provides these professionals with coverage for liability stemming from their non-professional acts or omissions that lead to bodily injury or property damage. Importantly, this endorsement does not cover their professional liability (errors and omissions in their design or professional services); that exposure should be covered by their own Professional Liability insurance. The coverage provided by this endorsement also does not typically extend to personal and advertising injury, as the underlying OCP policy often does not provide this coverage.

Classes of business it applies to

This endorsement is most commonly used in the construction industry. It applies to situations where an owner or contractor (the named insured on the OCP policy) hires architects, engineers, or surveyors for a specific project and is required by contract, or chooses, to provide them with some level of liability protection under their OCP policy.

Real-world example: A real estate developer (Named Insured) purchases an OCP policy for a new building project and hires an architectural firm to oversee certain aspects of the construction on-site, separate from their design duties. If an architect from that firm, while walking the site, accidentally knocks over a piece of equipment that injures a worker or damages property, this endorsement could provide coverage to the architectural firm for that non-professional act, subject to the policy terms and exclusions.

Special considerations

• Exclusion of Professional Liability: It is crucial to understand that this endorsement specifically does not cover the professional services of the architects, engineers, or surveyors. Any claims arising from design errors, miscalculations, or other professional malpractice are not covered by CG 20 31.
• OCP Specific: This endorsement is designed for use with the OCP Coverage Part (like CG 00 09), not the standard Commercial General Liability (CGL) coverage part. For adding these professionals to a CGL, a different endorsement (such as CG 20 07) would be used.
• Contractual Requirements: The extent of coverage provided to the additional insured may be limited by law or by the specifics of the contract between the named insured and the design professional. Often, the policy will state that the insurance afforded will not be broader than what is required by the contract.
• Scope of Coverage: The coverage is for liability arising out of the additional insured's activities related to the named insured's project but only for their non-professional conduct.

Key information for agents and underwriters

• Risk Assessment: Underwriters should evaluate the nature of the project and the specific on-site roles and responsibilities of the engineers, architects, or surveyors being added. The focus is on their potential to cause bodily injury or property damage through actions unrelated to their core professional design/consulting services.
• Distinguish from CGL Endorsements: Agents must ensure they are using the correct endorsement for the underlying coverage. CG 20 31 is for OCP policies; CG 20 07 is generally used for CGL policies when adding these professionals.
• No Substitute for Professional Liability: Agents should counsel their clients (both the named insured and the design professionals) that this endorsement is not a substitute for the architect, engineer, or surveyor carrying their own robust Professional Liability (Errors & Omissions) insurance.
• Review Contractual Obligations: It's important to review the contractual agreements between the named insured and the design professionals to understand the scope of additional insured coverage required and to ensure the endorsement aligns with those requirements, keeping in mind policy limitations.
• Edition Dates: Be aware of the specific edition date of the endorsement being used (e.g., 04 13, 12 19), as wording, particularly concerning limits of insurance or the scope of coverage, can change between editions. For example, later editions often clarify that if coverage is required by contract, the most the policy will pay is the amount required by the contract or the applicable policy limit, whichever is less.