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ISO Endorsements and CGL Policy--10 01 Edition      

by

Robert J. Marshburn, CRM, CIC, ARM, CRIS, CISC

Founder & CEO | Certified Risk Managers LLC

CertifiedRiskManagers.com 

1. CG 20 10 10 01 edition—Additional Insured coverage for “your ongoing operations” only, not “your work”.  Now specifically states in accord with the Pardee Construction decision that coverage is excluded for completed operations (and therefore Construction Defect Liability) for additional insureds.

2. CG 20 33 10 01 edition—Additional Insured coverage on an automatic basis for “your ongoing operations”.  Now specifically states in accord with the Pardee Construction decision that status as an insured under this endorsement ends when operations are completed .  Specifically excludes coverage for professional liability for design and supervision, as well as completed operations (and therefore does not cover Construction Defect Liability) for additional insureds.

3. CG 20 37 10 01 edition—Endorsement specifically adding "completed operations" for additional insured for “your work”.  Intent is to be comparable to the CG 20 10 11 85 edition which is virtually no longer available.  This form must be used with either the CG 20 10 10 01, or CG 20 33 10 01 (or other edition dates of these forms), or the CG 2038 04 13 edition (see the ISO 04 13 Additional Insured Endorsements) to give the Additional Insured both "ongoing operations" liability and "completed operations" liability coverage.

4. CG 22 94 10 01 edition—Blanket endorsement for all exposures removing the exception to the “your work” exclusion under Exclusion L of Section 1, Coverage A.  This is the exception that reads “This exclusion does not apply if the damaged work or the work out of which the damage arises was performed on your behalf by a subcontractor.”  With the exception to the exclusion removed, there is NO COVERAGE for damage to the GC’s work even when done by subs.

5. CG 22 95 10 01 edition—Scheduled endorsement similar to 22 94 above but for specific sites or operations.

6. CG 00 57 09 99—Amendment of Insuring Agreement for Known Injury or Damage (Montrose Endorsement).  This formerly “mandatory endorsement” is now incorporated directly into the Insuring Agreement of the new CGL CG 00 01 10 01 edition and prevents triggering coverage for known damage.

7. CG 00 01 10 01 edition—Policy Insuring agreement incorporating CG 00 57 09 99 “Montrose endorsement” above for known Injury or Damage.  (Also incorporates a number of revisions relating to Internet liability, trusts, volunteer workers, personal and advertising liability, definition clarifications, and other endorsements). 

The ISO 07/04 Endorsements carry over many of the above changes, but additionally have a narrowing effect on coverage by deleting the "liability arising out of" standard and introducing the "caused, in whole or in part, by your acts or omissions" standard and should be analyzed in connection with the changes in the 10 01 forms above.

The ISO 04 13 Additional Insured Endorsements contain SIGNIFICANT changes dramatically limiting or deleting potential coverage and must be understood to obtain coverage by updating your Contract Requirements!  Otherwise, NO COVERAGE!

Many contractors and carriers are using Wrap Policies (OCIPs, CCIPs, etc.) to cover these exposures, but they contain many dangers and gaps of their own.  

Our Proprietary Automated Insurance Verification^® Risk Management System has Enhanced Verification Provisions that helps Automatically Develop, Verify, Expose, Correct, and Activate Coverage Compliance with your Contract Insurance Coverage Requirements.

We do a considerable amount of client consulting and seminars on these and related issues and would be happy to consult with you or any of your clients.  If you would like information on how our services can benefit your business, please contact us.