What it does
CG 20 39 makes any person or organization for whom the named insured has performed operations an additional insured when a written contract or agreement requires it. Coverage is limited to "bodily injury" or "property damage" caused, in whole or in part, by "your work" performed for that party and included in the "products-completed operations hazard". It applies to the CGL and the Products/Completed Operations coverage parts.
Who needs it
Contractors whose contracts call for completed operations AI status, often for a stated number of years after completion. It is the blanket alternative to scheduling each project on CG 20 37.
Key provisions and limits
- Only the party in direct written contract with the insured qualifies. For other parties named in that contract, use CG 20 40.
- Exclusion for professional architectural, engineering or surveying services.
- Most paid for the additional insured is the lesser of the contract-required amount or the policy limits; no broader than the contract requires; limits are not increased.
Quoting and selling notes
- Introduced with the 12 19 edition. Before that, blanket completed operations status required carrier-specific forms or CG 20 37 with a broad schedule entry.
- Usually written with CG 20 33 so the same contracts get both ongoing and completed operations coverage.
- The coverage must remain on the policy in later years for completed projects; warn insureds before they let it drop or move to a carrier that will not offer it.
