1. Forms
2. CG
3. CG-20-41

What the form is

The CG 20 41 is an endorsement to the Commercial General Liability (CGL) policy. Its primary function is to grant additional insured status to specified persons or organizations (typically owners, lessees, or contractors) for liability stemming from the named insured's completed operations. A key aspect of this endorsement is its application to CGL classifications where the products-completed operations hazard is included within the General Aggregate Limit. These are often referred to as 'plus sign' or 'dagger' classifications in ISO manuals. This endorsement was developed to address potential coverage gaps for additional insureds when the named insured falls under such classifications, as traditional completed operations additional insured endorsements might not function as intended due to the specific definition and treatment of 'products-completed operations hazard' in these cases.

Classes of business it applies to

This endorsement is specifically intended for businesses whose CGL classifications stipulate that products-completed operations are subject to the General Aggregate Limit. These classifications generally represent operations with a relatively minor products-completed operations exposure. Consequently, ISO includes this coverage within the General Aggregate Limit rather than charging a distinct premium for it. Real-world examples include:

• Contractors performing work for property owners where the contractor's primary CGL classification is a 'dagger' class. The property owner may require additional insured status for liability arising from the contractor's completed work.
• Service providers whose main exposure is during ongoing operations but who have a residual completed operations risk and are contractually obligated to provide this coverage to their clients.

Special considerations

• 'Dagger' or 'Plus Sign' Classifications: Use of this form is critical when the named insured's operations are categorized under a 'dagger' or 'plus sign' CGL code. For these classifications, the standard definition of 'products-completed operations hazard' is altered, which can impact how other completed operations additional insured endorsements (like CG 20 37) respond. The CG 20 41 is designed to bridge this potential gap.
• Scope of Coverage: The endorsement typically clarifies that coverage for the additional insured applies to 'bodily injury', 'property damage', or 'personal and advertising injury' that is caused, in whole or in part, by the named insured's acts or omissions, or the acts or omissions of those acting on the named insured's behalf.
• Contractual Liability Limits: If the additional insured status is mandated by a contract or agreement, the policy often states that the maximum amount the insurer will pay on behalf of the additional insured is the lesser of the amount of insurance required by that contract or the applicable Limits of Insurance shown in the Declarations.
• Professional Services Exclusion: The 12 19 edition of this form excludes coverage for property damage (PD), bodily injury (BI), personal injury (PI), or advertising injury (AI) arising out of professional services.
• Edition Date: The CG 20 41 12 19 was introduced by ISO with an effective date of December 1, 2019.

Key information for agents and underwriters

• Risk Assessment: Underwriters should evaluate the completed operations exposure of the named insured, even when classified under a 'dagger' code. While these classes are considered to have minimal completed operations exposure, the potential for claims still exists.
• Pricing: The premium for this endorsement may be considered part of the overall rating for the 'dagger' classification, as these classes already factor in some products-completed operations exposure within the general aggregate. Insurers will have their own specific rating guidelines.
• Identifying Coverage Gaps: Agents must recognize when their clients fall under 'dagger' classifications and have contractual obligations to provide completed operations coverage to additional insureds. Without CG 20 41 or a similar endorsement, a significant coverage gap could exist for those additional insureds.
• Contractual Compliance: It is essential for agents to thoroughly review contracts that mandate additional insured status. They need to ensure that using CG 20 41 (when appropriate for the classification) fulfills all contractual requirements, especially those pertaining to completed operations coverage.
• Alternative to Other Endorsements: In the context of 'dagger' classifications, CG 20 41 is often the more appropriate choice for providing additional insured coverage for completed operations, as opposed to an endorsement like CG 20 37 which may not provide the intended scope of coverage due to the modified 'products-completed operations hazard' definition.