What it does
CG 22 94 replaces exclusion l. so that it excludes "property damage" to "your work" arising out of it or any part of it and included in the products-completed operations hazard, without the base form's exception for work performed by a subcontractor on the insured's behalf.
Who needs it
Common on residential and condominium contractors and on general contractors in construction defect-heavy states.
Key provisions and limits
- Damage to other property and bodily injury are not affected.
- Applies to all operations; CG 22 95 limits the same change to designated sites or operations.
Quoting and selling notes
- This is a major coverage reduction for general contractors: a defective sub's work that damages other parts of the finished building is no longer covered.
- Contracts that require "CGL including completed operations, on ISO CG 00 01 or equivalent" may not be satisfied.
Explaining the gap
- Under the base CGL, damage to the contractor's completed project caused by a subcontractor's defective work is covered because of the subcontractor exception to the "your work" exclusion; CG 22 94 removes that exception.
- The cost to repair the defective work itself is never covered; CG 22 94 affects resulting damage to other parts of the project.
- Homebuilders and condominium developers see this form most; owner-controlled wrap-ups and builder warranty programs are alternatives to discuss.
- Subcontractors' own policies (with the GC as AI) become the main protection, so enforce subcontractor insurance requirements.
