Product Update

Updated Case Law Interpreting Endorsement CG 20 33 in Contractual Risk Transfer

Automatic additional insured endorsements, such as ISO's CG 20 33, are typically attached to general liability policies year after year to cover the obligations of insureds who frequently agree to provide their indemnitees with insured status. Some of these endorsements limit the time frame within which they will provide insured status in one or more ways by providing only "ongoing operations" coverage or by specifying a date or set of conditions that terminates additional insured status. Without one of these limiting features, it is possible that insured status could be triggered for an indemnitee under the endorsement years after any contractual obligation to provide insured status ended. Exactly that circumstance was litigated recently in a California appellate court case—Interstate Fire & Cas. Co. v. Axis Surplus Ins. Co. (Oct. 31, 2018). The court found a basis for limiting the term of additional insured coverage within the language of the endorsement despite the fact that neither of the two limitations mentioned above was present. The case is discussed in our revised annotation of CGL endorsement CG 20 33 in this release of Contractual Risk Transfer.

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