Is it the intent of the 10/93 edition to strictly limit coverage for the additional insured only while the job is in progress but exclude it under any completed operations?

Construction contracts often require that the CGL policy, including completed operations, be kept in effect for two years after final acceptance by the owner. This would include the requirement of the owner being included as an additional insured.

An underwriter has advised that the inclusion of the 10/93 edition of the endorsement on the renewal policies would provide the owner with the required coverage, regardless of the fact that the endorsement applies only to ongoing operations.

This response leads me to believe that the phrase “ongoing operations performed for that insured” could include the two years the insured is required by contract to continue the liability policy in effect. As there is no definition of “ongoing operations” in either the CGL policy or the additional insured endorsement, I feel there is some ambiguity in the interpretation of the 10/93 edition of the endorsement.

Alaska Subscriber

A

The intent of the 10/93 endorsement is to limit coverage for the additional insured only while the job is in progress.

The previous version of the endorsement did use the term “your work” (which is used in a completed operations context) and ISO deliberately changed the wording on the current version because the form was not meant to apply to completed operations.

In the circular that described the change in CG 20 10, ISO specifically noted that CG 20 10 is “intended to provide coverage for a party for whom the named insured is performing operations while those operations are being performed. Additional insured status is only requested while work is in progress; once the work is completed, the additional insured is removed from the policy.” Therefore, CG 20 10 is only meant to apply while the job is in progress.

After the job is completed, the person named as an additional insured on CG 20 10 should have the necessary coverage under his own general liability form and there is not need to have that person continued on the liability coverage form of the entity that did the job. Each entity, the one who did the job and the one for whom the job was done, should have its own CGL form to cover its completed operations exposures.

CG 20 10 is not meant to apply to completed operations and is not meant to include the two years the insured may be required to continue the liability policy. Those two years should properly be covered under each entity's own CGL form.