What it does
CG 20 40 adds, without a schedule, (1) any person or organization for whom the named insured has performed operations under a written contract requiring AI status and (2) any other person or organization the insured is required to add under that contract. Coverage is for "bodily injury" or "property damage" caused, in whole or in part, by "your work" for those parties that falls within the "products-completed operations hazard".
Who needs it
Subcontractors on commercial and residential projects where the subcontract requires the owner, developer, lender or construction manager to be covered for completed operations along with the general contractor.
Key provisions and limits
- Exclusion for professional architectural, engineering or surveying services.
- Coverage no broader than the contract requires; limits payable are the lesser of the contract amount or policy limits; limits not increased.
- Applies to the CGL and Products/Completed Operations coverage parts.
Quoting and selling notes
- Use with CG 20 38 so the same set of parties gets ongoing and completed operations coverage.
- Introduced with the 12 19 edition.
- Ask how long contracts require completed operations coverage to be maintained and whether the carrier will continue the endorsement at renewal.
