What it does
CG 20 38 extends blanket additional insured status to two groups: (1) any person or organization the named insured performs operations for when a written contract requires it, and (2) any other person or organization the named insured is required to add under that same contract. Coverage applies to injury or damage caused, in whole or in part, by the named insured's acts or omissions in the performance of ongoing operations.
Who needs it
Subcontractors. A typical subcontract requires the sub to name the general contractor, the owner, the architect or the lender. CG 20 33 covers only the party in direct contract with the insured; CG 20 38 reaches the additional parties listed in that contract.
Key provisions and limits
- Status ends when operations for the contracting party are completed.
- Exclusions for professional architectural, engineering or surveying services and for injury or damage after the work is completed or put to its intended use.
- 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.
Quoting and selling notes
- When a subcontract lists several indemnitees, check that the insured carries CG 20 38 rather than CG 20 33; this is one of the most common AI gaps found in certificate review.
- For completed operations, the matching blanket form is CG 20 40.
- Coverage still depends on a written agreement executed before the loss.
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.
