What it does
CG 21 54 excludes "bodily injury" or "property damage" arising out of the named insured's ongoing operations or included in the products-completed operations hazard at the scheduled locations, but only if the named insured is enrolled in a "controlled (wrap-up) insurance program" for that injury or damage. The exclusion applies whether or not the wrap-up provides identical coverage, has adequate limits, or remains in effect.
Who needs it
Contractors on large commercial, public and residential projects insured under OCIPs or CCIPs.
Key provisions and limits
- "Controlled (wrap-up) insurance program" means a centralized program under which one party has secured insurance or self-insurance covering some or all contractors on one or more specific projects.
- The 12 19 edition says "Controlled"; the 01 96 edition said "Consolidated".
Quoting and selling notes
- If the wrap-up is cancelled, exhausted or ends before the statute of repose runs, the contractor has no coverage under its own CGL for that project. CG 21 31 avoids that gap.
- Exposures outside the wrap-up (off-site work, auto, workers compensation if excluded) still need to be covered.
