CG 21 04: Exclusion – Products-Completed Operations Hazard
Current Edition: 04 13 · Full ID: CG 21 04 04 13
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What Is CG 21 04?
This endorsement completely eliminates coverage for claims arising from products the insured sells or distributes and from work the insured has completed. If a customer is injured by a product after purchase, or if a contractor's finished work causes damage, the CGL policy will not respond.
Technical Summary: Endorsement removes the entire Products-Completed Operations Hazard from Coverage A and Coverage B of the CGL. Both the products hazard (bodily injury or property damage arising out of the insured's products away from premises) and the completed operations hazard (BI/PD arising out of the insured's completed work) are excluded. The Products-Completed Operations aggregate limit becomes inapplicable.
What CG 21 04 Covers
No coverage additions documented.
What CG 21 04 Does NOT Cover
- -All bodily injury and property damage included in the products-completed operations hazard
- -Claims arising from products manufactured, sold, handled, or distributed by the insured
- -Claims arising from operations that have been completed by or on behalf of the insured
- -Both Coverage A (BI/PD) and Coverage B (personal/advertising injury) as they relate to products-completed operations
Key Provisions
- ●Eliminates the products-completed operations hazard in its entirety
- ●Products-completed operations aggregate limit becomes meaningless with this endorsement attached
- ●Does not affect premises/operations coverage — only products and completed work
- ●Applies regardless of where the bodily injury or property damage occurs
Edition History
- • Reformatted language to align with 1993 CGL program revisions
- • Updated to reflect 2013 CGL program changes including revised definitions
Common Mistakes & E&O Warnings
This is one of the most dangerous exclusion endorsements in the CGL program. Agents who allow this endorsement without explicitly documenting the client's informed consent face severe E&O exposure. Contractors and manufacturers who unknowingly carry this endorsement have a catastrophic gap. The endorsement also renders any Additional Insured – Completed Operations endorsement (CG 20 37) completely worthless, which can trigger downstream liability for the agent.
- ⚠Believing the endorsement only removes 'products' coverage and not completed operations — it removes BOTH
- ⚠Not realizing this makes CG 20 37 (AI Completed Ops) void — there is no completed operations coverage to extend to an additional insured
- ⚠Assuming contractors who 'don't sell products' are unaffected — completed operations is often their primary claim exposure
- ⚠Failing to check certificates of insurance that promise products-completed operations coverage while this endorsement is attached
- ⚠Thinking the premium savings justify the risk — the savings are typically modest relative to the exposure eliminated
Frequently Asked Questions
What does CG 21 04 exclude?
CG 21 04 removes the entire products-completed operations hazard from the CGL policy. This means no coverage for claims arising from products sold or distributed by the insured, and no coverage for claims arising from work the insured has completed.
Does CG 21 04 affect additional insured endorsements?
Yes. CG 20 37 (Additional Insured – Completed Operations) becomes completely void when CG 21 04 is attached because there is no underlying completed operations coverage to extend to the additional insured.
Who should never have CG 21 04 on their policy?
Contractors (especially general contractors and subcontractors), manufacturers, distributors, and any business where completed work or sold products could cause injury or property damage. Most construction contracts require completed operations coverage.
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