What Is the CG 20 37 Form? Your Guide to Completed Operations Coverage
What Is the CG 20 37 Form? Your Guide to Completed Operations Coverage
You finished a plumbing installation three months ago. The client signed off, your crew moved on to the next job, and the project became a distant memory. Then you get a call: a pipe burst, water damaged the building, and now the property owner is suing everyone involved, including the general contractor who hired you.
If the general contractor was listed as an additional insured on your policy, do they have coverage for this claim? The answer depends entirely on whether your policy included a CG 20 37 endorsement. Without it, they could be left without protection for claims arising from your completed work.
This endorsement is one of the most important documents in contractor insurance, yet many contractors don't fully understand when they need it or why it matters. Let's break down what the CG 20 37 form does, who needs it, and how it works alongside other common endorsements.
What Is the CG 20 37 Endorsement?
The CG 20 37 is an additional insured endorsement that extends coverage to a designated third party for liability arising from your completed operations. In plain terms, it protects parties like general contractors, project owners, or property managers after your work is finished and the project has been put to its intended use.
This endorsement modifies your Commercial General Liability (CGL) policy by adding specific parties to the "Who Is An Insured" section. However, their coverage is limited to claims connected to work you performed for them. The additional insured receives defense and indemnification rights if they get sued over something related to your completed project.
The Insurance Services Office (ISO) develops these standardized forms, and the CG 20 37 has gone through several versions over the years. The most current version is the CG 20 37 12/19, though older editions like the 04/13, 07/04, and 10/01 versions remain in use on many policies.
Why Completed Operations Coverage Matters for Contractors
Construction defects often don't reveal themselves until months or even years after a project wraps up. A faulty electrical connection might work fine during inspection but cause a fire two years later. A roofing system could develop leaks after its first major storm season. HVAC ductwork might contribute to mold growth that isn't discovered until tenants start complaining about air quality.
When these issues surface, property owners and general contractors frequently face lawsuits. They want to know that the subcontractor's insurance will help defend them and cover damages. The CG 20 37 provides this protection during the completed operations period, which can extend for years depending on the statute of limitations in your state.
Without a CG 20 37 endorsement attached to the subcontractor's policy, the additional insured has no coverage under that policy once the work is done. They would need to rely on their own insurance or face the claim without the subcontractor's coverage supporting them.
How the CG 20 37 Differs from the CG 20 10
Understanding the relationship between these two endorsements is essential for contractors who want to meet their contractual obligations and protect their business relationships.
CG 20 10 covers ongoing operations. It provides additional insured status while your work is actively in progress. If your crew is on site running electrical conduit and someone trips over your equipment and gets injured, the CG 20 10 responds.
CG 20 37 covers completed operations. It takes over after your work is finished. If that same electrical work causes a fire six months after you've left the job site, the CG 20 37 responds.
Think of it this way: the CG 20 10 protects the additional insured during the construction phase, and the CG 20 37 protects them after the construction phase ends.
Most commercial contracts require both endorsements. A general contractor bidding on a new office building will typically need to show that all their subcontractors provide additional insured coverage for both ongoing and completed operations. Providing only the CG 20 10 leaves a significant gap in protection.
When Does "Completed Operations" Begin?
A project is generally considered complete when any of these conditions occur:
- All work required under the contract has been finished
- All work at a specific job site has been completed (for multi-site projects)
- The portion of completed work has been put to its intended use by someone other than another contractor working on the same project
This last point is important. If a homeowner moves into a house while finish work is still happening, the portions they're using could already be considered completed operations, even though the overall project isn't done.
Version Differences You Should Know About
The CG 20 37 endorsement hasn't always provided the same level of coverage. ISO has revised the form several times, and each version has different implications for how claims are handled.
CG 20 37 10/01
This edition provided coverage for liability "arising out of" the named insured's work. Courts generally interpreted this broad language to mean the additional insured could have coverage even if they were partially or wholly at fault, as long as the claim was connected to the contractor's completed work.
CG 20 37 07/04
ISO narrowed the language to cover liability "caused, in whole or in part, by" the named insured's acts or omissions. This change aimed to prevent additional insureds from obtaining coverage for their own sole negligence. The contractor must bear at least some responsibility for a loss before the additional insured can tap into coverage.
CG 20 37 04/13 and 12/19
These more recent editions added further limitations. Coverage now applies only to the extent permitted by law, and if a contract specifies coverage requirements, the endorsement won't provide broader protection than what the contract demands. Many states have anti-indemnity statutes that restrict how much liability can be transferred through insurance, and these endorsements align with those laws.
The 12/19 version also clarified that the insurer will pay the lesser of the amount required by contract or the available policy limits.
How to Make Sure You Have the Right Coverage
Getting your additional insured endorsements right requires attention to detail and clear communication with your insurance agent or broker.
Review your contracts carefully. Before signing any subcontract, examine the insurance requirements section. Note specifically whether completed operations coverage is required and for how long. Some contracts mandate that additional insured status continue for a set number of years after project completion.
Request both CG 20 10 and CG 20 37. Don't assume your policy automatically includes both. Ask your agent to confirm that both endorsements are attached and to provide copies for your records.
Check the edition dates. If a contract specifies a particular version of the endorsement, make sure your policy complies. Some general contractors and project owners still request older versions with broader coverage language, though not all carriers can accommodate these requests.
Verify the scheduled information. The CG 20 37 requires specific details including the name of the additional insured and a description of the completed operations and location. Incomplete or inaccurate information can create coverage disputes when a claim arises.
Keep documentation organized. Maintain copies of all certificates of insurance, endorsements, and contracts for every project. If a claim surfaces years later, you'll need to prove what coverage was in place at the time.
What the CG 20 37 Does Not Cover
Like all insurance forms, the CG 20 37 has limitations. The additional insured receives coverage only for liability tied to your completed work performed for them. It does not provide coverage for:
- The additional insured's own independent operations
- Claims unrelated to your work
- Losses that exceed your policy limits
- Exclusions that apply to your base CGL policy
The endorsement also doesn't increase your overall policy limits. If your completed operations coverage has a $1 million limit, that's the maximum available whether it's you or an additional insured making the claim.
Getting Your Completed Operations Coverage Right
The CG 20 37 endorsement plays a critical role in protecting the business relationships that keep contractors working. Project owners and general contractors count on their subcontractors to provide this coverage, and having it in place makes you a more attractive partner for larger, more profitable projects.
If you're unsure whether your current policy includes completed operations coverage for additional insureds, or if you need help understanding your contractual insurance requirements, the team at Contractor Coverage can help. With access to over 200 carriers and two decades of experience specializing in contractor insurance, we can make sure your coverage meets your needs. Give us a call or fill out a quote request to get started.
