If you’re in the construction industry and in the market for a CGL policy to fulfill a contract, read on. Today we’re talking about Commercial General Liability (CGL) Form CG 20 10 (11/85) endorsements, and why your clients may require one.
As we’ve mentioned in previous posts, an endorsement is an add-on to an existing insurance policy. The CG 20 10 additional insured endorsement extends coverage to your clients. What makes the CG 20 10 11/85 endorsement different, and client preferred, boils down to the phrase: “your work”. After November 1985 (hence 11/85), the phrase your work was replaced with “your ongoing operations.”
Though this may sound like a small change, it’s a huge difference to the person you’re completing the work for. The 11/85 endorsement provides broader coverage for the additional insured because it guarantees the work itself for a period of 10 years. If there’s a problem with your work, your client may likely not know about it until after your operations have been completed for the project. If the endorsement only covers your “ongoing operations”, your client won’t be protected in the event that your work fails sometime after operations on the project have ceased.
To learn more about CGL endorsements, CG 20 10 11/85 and otherwise, schedule a call with a Fusco & Orsini insurance agent.