1. Forms
  2. CG
  3. CG-20-37

What it does

CG 20 37 adds the persons or organizations shown in its schedule as additional insureds, but only for "bodily injury" or "property damage" caused, in whole or in part, by "your work" at the scheduled location that was performed for that additional insured and falls within the "products-completed operations hazard". It covers the period after the job is finished, when construction defect and post-completion injury claims typically arise.

Who needs it

Contractors and subcontractors whose contracts require AI status for completed operations, often for a period of years after completion. It is the scheduled counterpart to CG 20 10 and is usually issued alongside it.

Key provisions and limits

  • Schedule: the additional insured's name and the location and description of completed operations.
  • Personal and advertising injury is not included; the grant is limited to bodily injury and property damage.
  • Contract caps the coverage: the additional insured gets no broader coverage than the contract requires, and if a contract requires the coverage the most paid for the additional insured is the lesser of the contract-required amount or the policy limits. The endorsement never increases the policy limits.
  • Losses paid under this endorsement erode the products-completed operations aggregate.

Quoting and selling notes

  • Completed operations AI status must be kept in force for as long as the contract requires. If the client changes carriers or drops the endorsement at renewal, the additional insured may lose coverage for older projects; ask how long each contract requires it.
  • When the client signs many contracts with the same requirement, the blanket forms CG 20 39 (party you contract with) or CG 20 40 (that party plus others the contract names) avoid scheduling each project.
  • An underwriter will price completed operations AI more carefully for residential, condominium and structural trades.

Contract and certificate checklist

  • Get the contract insurance clause, not just the certificate request. It tells you whether the other party needs ongoing operations, completed operations or both, for how long, and whether coverage must be primary and noncontributory or carry a waiver of subrogation.
  • Check that the AI form's causation wording ("caused, in whole or in part, by" the named insured) meets the contract; requests for coverage of the other party's sole negligence cannot be met with ISO forms and may be unenforceable under state anti-indemnity laws.
  • Because the AI coverage is capped at what the contract requires, a contract that asks for $1 million per occurrence gives the additional insured only $1 million even if the policy carries higher limits.
  • List the endorsement number and edition on the certificate description only if the endorsement is actually on the policy; a certificate does not create coverage.
  • Additional insureds share the named insured's limits; on large or many projects consider per project aggregates (CG 25 03) and umbrella follow-form wording for AIs.

Timing issues

  • Completed operations AI coverage applies to injury or damage that occurs while the policy carrying the endorsement is in force; keep the endorsement on each renewal for as long as the contract requires (often the statute of repose).
  • When a contractor retires or closes, discontinued operations coverage (for example CG 00 37) with the endorsement attached protects both the contractor and its AIs.

Related forms

CG 20 10 (ongoing operations), CG 20 39, CG 20 40, CG 20 41 (ongoing and completed in one form, subject to the general aggregate), CG 20 01, CG 24 04.