1. Forms
2. CG
3. CG-22-43

Form CG 22 43: Exclusion – Engineers, Architects Or Surveyors Professional Liability

1. What the Form Is

The CG 22 43 is an exclusionary endorsement to the Commercial General Liability (CGL) policy, such as the CG 00 01. Its primary purpose is to eliminate coverage for liability arising from the rendering of or failure to render professional services by engineers, architects, or surveyors. This endorsement clarifies that the CGL policy is not intended to cover errors and omissions exposures inherent in these professions. Instead, such exposures should be covered by a dedicated Professional Liability (Errors & Omissions or E&O) insurance policy. The exclusion typically applies to liability for "bodily injury," "property damage," or "personal and advertising injury" that arises out of these professional services.

It's important to note that the summary provided in the prompt (stating it provides limited coverage) is incorrect; this form is a broad exclusion of professional liability.

2. Classes of Business It Applies To

This endorsement is specifically designed for and most appropriately attached to the CGL policies of:

• Firms whose primary business is providing engineering, architectural, or surveying services to others. For example, an architectural firm hired to design a commercial building or an engineering firm engaged to oversee the structural integrity of a bridge.
• Consulting engineers, architects, or surveyors.

3. Special Considerations

• Broad Scope: This is a broad exclusion. It typically encompasses a wide range of professional activities including the preparing, approving, or failing to prepare or approve maps, shop drawings, opinions, reports, surveys, field orders, change orders, or drawings and specifications, as well as supervisory or inspection activities.
• Inappropriateness for Contractors with Design Exposure: This endorsement is generally not suitable for construction contractors, design-build firms, or other businesses that may perform or subcontract engineering, architectural, or surveying services incidental to their construction operations. Attaching CG 22 43 to such a policy could create significant coverage gaps, potentially excluding claims arising from their construction management, design input, or even supervision of design subcontractors.
  • Real-world example: A general contractor undertakes a design-build project. If CG 22 43 is attached to their CGL, and a flaw in the design (whether done in-house or by a hired design firm) leads to property damage, the CGL policy would likely exclude this claim due to this endorsement.
• Need for Separate E&O Coverage: The presence of CG 22 43 highlights the critical need for the insured to have a separate Engineers, Architects, or Surveyors Professional Liability (E&O) policy. This E&O policy is specifically designed to cover the financial losses arising from professional negligence or errors.
• CGL Policy Limitations: It's crucial to remember that a standard CGL policy (even without this exclusion) is primarily designed to cover "bodily injury" and "property damage" caused by an "occurrence," or "personal and advertising injury." Purely economic losses (e.g., the cost to remediate a faulty design if no BI or PD has yet occurred) are generally not covered under a CGL policy.

4. Key Information for Agents and Underwriters

• Accurate Classification is Key: Underwriters and agents must meticulously assess the insured's operations. If the insured is purely a consulting A&E firm, CG 22 43 is a standard and appropriate endorsement. However, if the insured is a contractor with any design, design-assist, or design supervisory roles, this endorsement is likely inappropriate and could lead to uninsured claims.
• Alternative Endorsements for Contractors: For contractors with professional exposures, underwriters should consider alternative endorsements:
  • CG 22 79 Exclusion – Contractors – Professional Liability: This endorsement also excludes professional liability but often includes an exception for "services within construction means, methods, techniques, sequences and procedures employed by you in connection with your operations in your capacity as a construction contractor." This can preserve coverage for some of the contractor's typical operational activities that might otherwise be construed as professional services.
  • CG 22 80 Limited Exclusion – Contractors – Professional Liability: This is often a less restrictive option. It might only exclude professional services performed by the named insured when acting in the capacity of an engineer, architect, or surveyor, and may not exclude services performed on their behalf by a subcontractor or those related to construction work.
• Coverage Gap Awareness: Misapplying CG 22 43 to a contractor can result in severe coverage gaps for professional liability arising out of their work, including vicarious liability for subcontracted design professionals. Agents should counsel contractor clients on these potential gaps and the need for appropriate Contractors Professional Liability coverage if exposed.
• Pricing Implications: The CGL premium for a firm with CG 22 43 attached will reflect the removal of this professional liability exposure. The insured will need to secure and pay for a separate E&O policy, which will be specifically underwritten and priced for their professional exposures.
• Underwriting Intent: The CG 22 43 clarifies that the CGL is not a substitute for a dedicated E&O policy for design professionals. It helps maintain the integrity of the CGL by ensuring it doesn't unintentionally pick up professional malpractice claims that require specialized underwriting and rating.