What is the purpose of an Additional Insured endorsement?

An Additional Insured endorsement protects the hiring general contractor or property owner by transferring the risk of liability claims arising from the subcontractor’s work directly to the subcontractor’s insurer.

What is the difference between CG 20 10 and CG 20 37?

CG 20 10 covers liability during ongoing operations while work is in progress. CG 20 37 covers completed operations liability for property damage or bodily injury discovered after the contractor has finished their work.

Is listing an entity as Certificate Holder the same as Additional Insured?

No. Being named as a Certificate Holder only entitles an entity to receive a copy of the certificate. It grants zero insurance coverage without an executed Additional Insured endorsement.

Compliance Definition

What is an Additional Insured?

Understanding Additional Insured endorsements, risk transfer mechanics, and standard construction endorsement forms like CG 20 10 and CG 20 37.

Definition

An Additional Insured is a person or organization granted coverage under another party’s insurance policy via endorsement. In construction, general contractors require subcontractors to name them as Additional Insureds so that any lawsuit resulting from the subcontractor’s operations is defended and paid by the subcontractor’s policy.

Ongoing vs Completed Operations

CG 20 10 — Ongoing Operations

Protects the hiring party while the subcontractor is physically on-site performing work. Coverage terminates the moment work is completed.

CG 20 37 — Completed Operations

Protects against latent property damage or injuries that emerge months or years after the subcontractor finishes work (e.g., plumbing leaks or structural defects).

Certificate Holder vs. Additional Insured

One of the most common and costly mistakes in compliance management is confusing the Certificate Holder with an Additional Insured.

Certificate Holder: An entity whose name is listed in the bottom-left box of the ACORD 25. This grants zero coverage. It simply means the entity will be notified (usually via mail) if the policy is canceled.
Additional Insured: An entity legally granted defense and indemnification rights. This status requires a formal endorsement schedule (like CG 20 10) to be attached to the policy, not just a checkbox on the ACORD form.

How to Verify Additional Insured Status

When a subcontractor submits an ACORD 25 Certificate of Insurance, general contractors must verify two things to ensure risk transfer is active:

Check the "ADDL INSD" column in the main coverage grid of the ACORD 25. There must be a "Y" indicating the policy includes the endorsement.
Request and review the actual endorsement document (e.g., ISO form CG 20 10 04 13 or a carrier-specific manuscript form). The endorsement must name the general contractor or use blanket language referencing the written contract.

Never rely solely on the Description of Operations box. Any text typed by the broker into that box does not legally amend the policy coverage.

Want a full comparison of CG 20 10 vs CG 20 37?

Read our complete technical breakdown of contractor endorsement editions.

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