What it does
CG 20 42 adds any person or organization the named insured has agreed to add under any contract or agreement, but only for "bodily injury" or "property damage" not in the products-completed operations hazard, or "personal and advertising injury", caused in whole or in part by the named insured's acts or omissions in the performance of the operations described in the schedule.
Who needs it
Insureds with a defined service line (for example janitorial, security, event services or a contractor's specific trade) for which customers commonly require AI status.
Key provisions and limits
- Professional services exclusion covering legal, accounting, advertising, design and engineering, construction management inspection, medical, therapeutic, cosmetic, fitness, optical, body piercing, pharmacy, law enforcement and funeral services.
- Unlike CG 20 43, the wording does not say "in writing"; it refers to any contract or agreement.
- Coverage applies only to the extent permitted by law.
- Contract-based limits: coverage is no broader than any contract requires, the most paid for the additional insured is the lesser of the contract-required amount or the policy limits, and the endorsement does not increase limits.
Quoting and selling notes
- Introduced with the 12 19 edition.
- Describe the operations broadly enough to match the client's contracts.
