WHAT DIFFERENCE A DATE MAKES – TO AN ADDITIONAL INSURED By Cathy Trischan, CPCU, CRM, CIC, ARM, AU, AAI, CRIS, MLIS, TRIP
Your contractor client sends you a certificate request with insurance requirements for a new job. The general contractor is requiring that it be additional insured on CG 20 10 11 85 or its equivalent. You issue the certificate showing coverage on the CG 20 10 12 19 form your insurer is currently using. Your insured calls and is furious. The general contractor refuses to let him begin work until the proper endorsement is issued and is threatening to cancel the contract. 4
What went wrong? Isn’t what you provided equivalent?
example, while a general contractor might add a project owner.
The short answer is no – it is not equivalent. The long answer requires a bit of an additional insured history lesson.
The CG 20 10 11 85 states that coverage applies with respect to liability arising out of the named insured’s work for the additional insured. This form does two things that more recent editions of the form do not do. The CG 20 10 11 85 covers the additional insured even if the named insured has done nothing to contribute to the loss – for example, when the additional insured is the solely negligent party.
The CG 20 10 – Additional Insured - Owners, Lessees or Contractors endorsement adds coverage for those for whom a named insured contractor is performing operations. A subcontractor can add a general contractor, for AUGUST 2022
