What it does
CG 21 53 adds a Coverage A exclusion for "bodily injury" or "property damage" arising out of the ongoing operations described in the schedule, whether the operations are performed by the named insured or on its behalf, and whether for itself or for others. If a "location" is specified, the exclusion applies only to those operations at that location; otherwise it applies wherever the operations are performed.
Who needs it
Underwriters attach it to carve out a specific activity they will not write, such as a contractor's occasional roofing, demolition or work on a particular project.
Key provisions and limits
- Applies to ongoing operations; completed operations exposures are addressed by CG 21 34 (designated work) or CG 21 33 (designated products).
- "Location" is defined as premises involving the same or connecting lots, or premises separated only by a street, roadway, waterway or railroad right-of-way.
Quoting and selling notes
- Read the schedule wording closely: broad descriptions ("roofing operations") can remove coverage for incidental work the client considers part of its normal trade.
- Tell the client the excluded operation needs coverage elsewhere or must be subcontracted to an insured sub.
