Free Cg 20 26 04 13 PDF Template

1. What is the CG 20 26 04 13 form?

   The CG 20 26 04 13 form is an endorsement used in commercial general liability (CGL) policies. It specifically modifies the policy to include certain individuals or organizations as additional insureds. This change extends the policy's protection to cover liabilities for bodily injury, property damage, or personal and advertising injury caused partly or entirely by the actions or omissions of the named insured or those acting on their behalf, linked to the insured's operations or premises.

2. Who can be added as an additional insured on this endorsement?

   Individuals or organizations specified in the CG 20 26 04 13 form’s schedule can be added as additional insureds. These entities are typically added because of a legal or contractual relationship with the named insured, such as landlords, lessors, or business partners, whose exposure to risks is increased by their association with the named insured's operations or premises.

3. Under what conditions does the additional insured coverage apply?

   Coverage for additional insureds under this endorsement applies only with respect to liability for bodily injury, property damage, or personal and advertising injury caused, in whole or in part, by the named insured's actions or those acting on their behalf. This includes actions taken during the performance of the named insured’s ongoing operations or in connection with the named insured’s premises. However, the coverage is subject to the restrictions of applicable law and the specific requirements of any contract or agreement stipulating the need for such coverage.

4. Does this endorsement affect the policy's limits of insurance?

   No, the CG 20 26 04 13 endorsement does not increase the policy's overall limits of insurance for additional insureds. If coverage for an additional insured is mandated by a contract or agreement, the maximum that will be paid on behalf of the additional insured is either the amount required by the contract or agreement or the limits shown in the policy's Declarations, whichever is lesser.

5. Is the coverage for additional insureds broader than the coverage for the named insured?

   No, the insurance provided to additional insureds will not exceed the scope of coverage the named insured is obligated to provide as per any contract or agreement. Essentially, if the named insured is required by contract to extend certain protections to an additional insured, the coverage afforded through this endorsement will mirror those requirements but will not surpass the insured’s contractual obligations or the policy's terms.

6. How does adding an additional insured impact the named insured’s policy?

   Adding an additional insured to a CGL policy via the CG 20 26 04 13 endorsement extends the policy's liability protections to cover certain risks associated with the additional insured, as-per contractual obligations. This can help the named insured comply with business agreements requiring such coverage. However, it does not increase the policy's limits of insurance, and care should be taken to ensure that any such addition aligns with the named insured’s coverage needs and legal or contractual obligations.

When filling out the CG 20 26 04 13 form, commonly known as the Additional Insured – Designated Person or Organization endorsement, individuals often make mistakes. These errors can significantly impact the coverage and protection offered under a Commercial General Liability insurance policy. It is crucial to avoid these common pitfalls to ensure the intended individuals or organizations gain the correct level of insurance protection.

1. Not clearly identifying the additional insured person or organization in the Schedule, leading to confusion about who is covered.

2. Omitting relevant information that should be included in the Declarations to complete the Schedule properly.

3. Assuming the additional insured's coverage is automatic without verifying the extent of coverage permitted by law.

4. Misunderstanding the scope of coverage, especially that it only applies to liability caused by the named insured’s acts or omissions.

5. Overlooking that coverage for the additional insured is no broader than required by any contract or agreement if such requirement exists.

6. Failure to realize that the insurance might not extend to all acts or omissions outside the performance of ongoing operations or in connection with the named insured’s premises.

7. Failing to note that the limits of insurance for the additional insured may be capped by a contract or agreement or by the limits shown in the Declarations.

8. Not understanding that this endorsement does not increase the overall Limits of Insurance for the policy.

9. Not regularly reviewing and updating the endorsement to reflect changes in the contractual relationship or extent of the required coverage.

10. Incorrectly believing that additional insured status grants broader rights under the policy than it actually does.

It's vital to approach this form with careful attention to detail and a thorough understanding of the coverage implications it brings. Consulting with a qualified insurance professional can provide clarity and guidance, reducing the risk of these common mistakes.

When managing commercial general liability, the CG 20 26 04 13 form, which designates certain entities or individuals as additional insureds, is a critical document that broadens the scope of who is covered under a policy. However, to fully understand and implement the insurance coverage, several other forms and documents often accompany this endorsement. These forms play crucial roles in defining the parameters of coverage, outlining responsibilities, and ensuring compliance with legal and contractual obligations.

• ACORD 25 – Certificate of Liability Insurance: This document serves as proof of insurance coverage. It summarizes the key aspects of the policy, including the types and limits of coverage, the policy number, and the insurance company. It is often requested by third parties wanting to verify that adequate insurance is in place.
• CG 00 01 – Commercial General Liability Coverage Form: This foundational document outlines the coverage offered under a commercial general liability insurance policy. It specifies what is covered, including bodily injury, property damage, and personal and advertising injury, along with the exclusions and limits of coverage.
• CG 24 26 – Waiver of Transfer of Rights of Recovery Against Others to Us: This form modifies a policy by waiving the insurance company's right to pursue recovery from a third party after a claim is paid. This waiver is typically required in contracts where one party does not want the insurer to seek compensation from them after an incident.
• CG 20 10 – Additional Insured – Owners, Lessees or Contractors: Similar to the CG 20 26, this form extends additional insured status to owners, lessees, or contractors under certain conditions, typically related to construction projects or rental agreements, providing broader liability coverage for those entities.
• CG 20 37 – Additional Insured – Completed Operations: This endorsement extends additional insured status to cover liability arising out of the named insured's completed operations. It is often sought by project owners or general contractors to protect against liability claims that occur after a construction project is completed.

Together with these forms, the CG 20 26 04 13 endorsement becomes part of a comprehensive approach to managing risk through commercial insurance. Each document has a specific function, from proving insurance coverage to defining the scope and limits of coverage, making it essential for policyholders and additional insureds to understand their content and implications.

• CG 20 10 (Additional Insured – Owners, Lessees or Contractors): Similar to the CG 20 26, the CG 20 10 form extends additional insured status but focuses on owners, lessees, or contractors. Both forms modify the “Who Is An Insured” section of a general liability policy, specifying under what conditions additional parties are covered.

• CG 20 33 (Additional Insured – Owners, Lessees Or Contractors – Automatic Status When Required In Construction Agreement With You): This document, like the CG 20 26, offers additional insured status. It automatically provides this status to owners, lessees, or contractors whenever required by a construction contract, emphasizing its use in construction agreements, similar to the CG 20 26's applicability to ongoing operations or premises related agreements.

• CG 20 37 (Additional Insured – Completed Operations): The CG 20 37 form extends additional insured coverage for completed operations, whereas the CG 20 26 typically covers ongoing operations. Despite this difference, both serve the purpose of modifying who is covered under a commercial general liability policy in specific, outlined scenarios.

• CG 24 26 (Waiver of Subrogation – Designated Person or Organization): While the CG 24 26 involves a waiver of subrogation rights rather than extending additional insured status, it similarly amends a policy to benefit a third party. Both forms require specific scheduling of the person or organization afforded new rights under the policy.

• CG 00 01 (Commercial General Liability Coverage Form): This is the standard commercial general liability (CGL) coverage form. Forms like CG 20 26 are endorsements that attach to and modify the coverage provided by CG 00 01, specifying conditions under which additional insureds are covered.

• ISO Form CA 20 48 (Designated Insured Endorsement for Auto Liability): Although this form pertains to automobile liability, the concept mirrors the CG 20 26, as it designates additional insureds under specific circumstances. Both forms involve modifying an original policy to extend coverage to additional entities or individuals.

• CG 21 39 (Contractual Liability Limitation): This endorsement restricts coverage for contractual liability, contrasting with CG 20 26’s role in extending coverage to additional insureds under certain contractual scenarios. They are similar in their function to amend the scope of a general liability policy based on contractual requirements.

• CG 20 15 (Additional Insured – Vendors): This form specifically extends additional insured status to vendors, similar to how CG 20 26 extends it to designated persons or organizations. Both endorsements amend the insurance policy to include additional insureds, albeit for different parties and under different conditions.

• CG 04 13 (Additional Insured – Grantor of Franchises): The CG 04 13 offers additional insured status to franchisors, akin to how the CG 20 26 covers designated persons or organizations. Each targets specific types of operations and defines the scope of coverage extension within a general liability framework.

• CG 20 38 (Additional Insured – Mortgagee, Assignee, or Receiver): Similar to the CG 20 26 form, the CG 20 38 extend additional insured status, this time to mortgagees, assignees, or receivers. Both documents serve to expand the list of insured under a policy for specified roles and under predetermined conditions.

Filling out the CG 20 26 04 13 form, an essential document for adding an additional insured to a Commercial General Liability policy, requires attention to detail and a clear understanding of what's required. Here are some dos and don'ts to guide you through the process:

• Do thoroughly review the entire form before starting. It's crucial to understand every section to ensure accurate completion.
• Do verify the Policy Number to ensure that the endorsement is applied to the correct policy.
• Do clearly specify the Name Of Additional Insured Person(s) Or Organization(s) in the scheduled section. This information is critical to ensure the correct entity is covered.
• Do understand the limits of coverage for the additional insured. Be aware that the coverage will not exceed the Limits of Insurance shown in the Declarations or the requirements of any contract or agreement in place.
• Don't overlook the conditions under which an additional insured is covered. It is limited to liability for "bodily injury", "property damage", or "personal and advertising injury" that's connected to your operations or premises.
• Don't assume that the coverage for an additional insured is unlimited. Note that its scope is as permitted by law, and in some cases, it is no broader than what is contractually required.
• Don't disregard the importance of Section III – Limits Of Insurance. The most paid on behalf of an additional insured is bound by contract or the available limit in the Declarations, whichever is lesser.
• Don't forget to check whether any state-specific endorsements or requirements may affect the insurance provided to the additional insured. Always ensure compliance with local regulations.

Accurately completing the CG 20 26 04 13 form plays a pivotal role in extending liability coverage effectively. Always proceed with diligence and, when in doubt, consult with a professional to clarify complex points. The goal is to ensure that all parties understand and agree upon the extent of coverage provided.

• It grants automatic coverage for all activities. A common misconception is that the CG 20 26 04 13 form extends coverage to the additional insured for all their business activities. In reality, it only covers liability arising from the named insured's operations or premises.

• It provides unlimited insurance to additional insureds. Some may believe this endorsement offers unlimited coverage to additional insureds. However, coverage is limited to what is required by a contract or the limits specified in the Declarations, whichever is less. It clearly does not increase the overall Limits of Insurance.

• The form covers all types of liabilities. While it may seem comprehensive, this particular endorsement specifically limits coverage to "bodily injury", "property damage", or "personal and advertising injury". It does not extend to all possible liabilities that may arise.

• It only benefits the additional insured. While the form does add an additional insured, it's essential to understand that its primary function is to protect the named insured's interests, especially in a contractual relationship requiring such an endorsement. The protection afforded benefits both parties involved.

• The coverage is automatically broader than required. There's a belief that the CG 20 26 04 13 automatically provides broader coverage than mandated by contract for the additional insured. Conversely, it expressly states that the coverage will not be broader than required by the agreement or law.

• It replaces a primary insurance policy for the additional insured. Some may incorrectly assume that this endorsement can act as a primary insurance policy for the additional insured. This is not the case; it supplements the primary coverage that the additional insured should already have in place, providing specific coverage related to the named insured's actions.

• Any updates to the policy automatically apply to the additional insured. It's a common misconception that if the named insured's policy is updated or amended, those changes automatically apply to the coverage extended to the additional insured. In fact, any changes to the scope of coverage for the additional insured would need to be made explicitly, often requiring a new endorsement or agreement.

Understanding the CG 20 26 04 13 form is crucial for ensuring that additional insureds are properly covered under a commercial general liability policy. Here are key takeaways to help navigate this important aspect of business insurance:

• Endorsement Modification: The CV 20 26 04 13 form serves as an endorsement, meaning it modifies the existing commercial general liability policy by adding coverage for additional insureds.
• Schedule Identification: The specific individuals or organizations covered as additional insureds are listed in the Schedule. If the Schedule is not filled out on the endorsement itself, this information will be found in the Declarations of the policy.
• Coverage Trigger: Coverage for additional insureds is triggered by their liability arising out of your acts or omissions or those acting on your behalf, specifically in the context of your ongoing operations or premises.
• Legal Compliance: The insurance coverage provided to additional insureds is always subject to the limits allowed by law. This can impact the scope and effectiveness of the added protection.
• Contractual Requirements: If the additional insured status is mandated by a contract or agreement, the scope of coverage will align with those requirements and cannot extend beyond what is contractually obligated.
• Limits of Insurance: Any coverage extended to additional insureds will adhere to the monetary limits specified in the contract or agreement, or the limits shown in the policy Declarations, whichever is less. This ensures that the policy does not exceed predetermined coverage caps.
• Non-Increasing Limits: Adding an additional insured through this endorsement does not increase the overall Limits of Insurance of the policy. It’s critical to understand that the amount available for coverage may need to be shared among multiple insured parties.
• Shared Limits: Organizations should consider the implications of shared limits, as this can decrease the amount of coverage available per claim if multiple claims arise involving both the primary policyholder and the additional insureds.
• Contractual Diligence: Parties seeking to be added as additional insureds, as well as policyholders considering adding them, should closely review the contractual requirements binding them to guarantee the insurance coverage meets all parties’ needs.

Ensuring all parties have the necessary coverage in place is fundamental to the protection of business interests. When used properly, the CG 20 26 04 13 form plays a crucial role in managing risk and safeguarding against potential liabilities.