New Commercial General Liability Endorsements

ISO’s 2013 Commercial General Liability (CGL) filing makes significant revisions to dozens of endorsements as well as introduces six new CGL endorsements, at least two of which will impact the construction industry.

Endorsement CG 20 01– Primary and Noncontributory – Other Insurance Condition: CG 20 01 is a new, optional endorsement that has been introduced to address the language found in many construction contracts that requires contractors (or subcontractors) to extend coverage to an additional insured on a “primary and noncontributory” basis. This endorsement alters the Other Insurance Condition of the standard CGL policy to expressly clarify that coverage provided to an additional insured is “primary and noncontributory”.

Endorsement CG 20 01 applies when:

The additional insured is a named insured on another policy; AND

A written contract or agreement requires the named insured’s policy to be primary and to not seek contribution from other insurance available to the additional insured.

Endorsement CG 20 38– Additional Insured – Owners, Lessees or Contractors – Automatic Status for Other Parties When Required in Written Construction Agreement: This CGL endorsement extends additional insured status to an upstream party as required by a construction contract, even when that upstream party is not a direct party to the contract. For example, a contract between a subcontractor and a sub-subcontractor may require the sub-subcontractor to extend additional insured coverage to the general contractor that is not a party to the contract between the two subs. CG 20 38 extends the additional insured status to the general contractor without the need for a specific listing.