CG 20 38: Additional Insured - Owners, Lessees or Contractors - Automatic Status When Required in Construction Agreement with Limited Coverage
Current Edition: 12 19 · Full ID: CG 20 38 12 19
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What Is CG 20 38?
This endorsement automatically grants additional-insured status to upstream parties in a construction project when required by a written construction agreement. It is broader than CG 20 33 because it can extend to parties further up the contracting chain. However, it provides limited coverage and does not include completed operations.
Technical Summary: Provides blanket automatic additional-insured status for ongoing operations, triggered by a written construction agreement. Compared to CG 20 33, CG 20 38 extends automatic AI status more broadly to upstream entities in the construction chain, including project owners and upper-tier contractors who may not have a direct contract with the named insured. The 'limited coverage' designation reflects the ongoing-operations-only restriction and tighter causation language.
What CG 20 38 Covers
- +Bodily injury or property damage arising from the named insured's ongoing operations for upstream construction parties
- +Automatic AI status for entities required by written construction agreements, including those without direct privity
- +Vicarious liability of upstream parties for the named insured's ongoing work on the project
What CG 20 38 Does NOT Cover
- -Products-completed operations hazard
- -Sole negligence of the additional insured
- -Liability not arising from the named insured's ongoing work
- -Non-construction agreements or verbal contracts
- -Independent acts of the additional insured unrelated to the named insured's operations
Key Provisions
- ●Automatic status extends to upstream parties in the construction chain, not just the direct contracting party
- ●Triggered by written construction agreements executed prior to the occurrence
- ●Coverage is limited to ongoing operations -- no completed-operations protection
- ●The 'limited coverage' designation reflects the narrower scope compared to what might be expected from the broad automatic triggering mechanism
- ●Subject to standard causation requirements -- liability must arise from the named insured's acts or omissions
Edition History
- • Minor reference and formatting updates
- • No substantive coverage changes from 04/13
Common Mistakes & E&O Warnings
CG 20 38 carries moderate E&O risk primarily because its 'limited coverage' subtitle can create confusion. Producers may not fully understand how it differs from CG 20 33, and certificate holders sometimes reject it when they expected a different form. The risk is elevated when agencies issue CG 20 38 without clearly communicating the ongoing-operations-only limitation to the additional insured.
- ⚠Confusing CG 20 38 with CG 20 33 -- they are different forms with different scope, despite similar names
- ⚠Assuming 'limited coverage' means less protection than CG 20 33 in all respects (the upstream-party reach is actually broader)
- ⚠Believing this form includes completed operations because of its broader party scope
- ⚠Not understanding that certificate holders may specifically require CG 20 33 or CG 20 10 and will not accept CG 20 38 as a substitute
Frequently Asked Questions
What is the difference between CG 20 38 and CG 20 33?
Both provide blanket automatic AI status triggered by written construction agreements. CG 20 38 extends coverage more broadly to upstream parties in the construction chain, while CG 20 33 focuses on the direct contracting parties. CG 20 38 has 'limited coverage' due to tighter causation language.
Does CG 20 38 cover completed operations?
No. Like CG 20 33, CG 20 38 covers ongoing operations only. A separate completed-operations endorsement is needed for post-completion claims.
Will a certificate holder accept CG 20 38 instead of CG 20 10?
It depends on the contract language. Some contracts specifically require CG 20 10. If the contract broadly requires AI status, CG 20 38 may suffice, but always verify the contract requirements before substituting.
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