Ongoing and Completed Operations Endorsement Gaps

An additional insured endorsement is an amendment to an insurance policy that extends its coverage to persons or organizations not originally named as insureds.

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Additional Insured Endorsement: Ongoing Operations

Ongoing Operations coverage encompasses liability for any risk associated with a contractor’s ongoing work on premises until that work is either completed or ceases. For example, if a firm doing electrical work on premises accidentally causes damage to a building’s electrical grid, the liability for the property damage caused by this incident would be covered if the firm has coverage for Ongoing Operations.

An Additional Insured Endorsement for Ongoing Operations (i.e. CG 2010 or equivalent) would extend this same coverage to whichever persons or organizations are classified as additional insureds by the endorsement.

In the example above, if the damage to the building’s electrical grid caused property damage to a tenant’s business, the tenant might sue the landlord. The landlord would be covered by the insurance policy of the vendor, however, if the firm doing the electric work listed the landlord as an additional insured for ongoing operations.

Missing Additional Insured Endorsement covering Ongoing Operations (CG 2010 or equivalent)

Additional Insured Endorsements covering Ongoing Operations come in many different forms depending on the insurer, but CG 2010 (see below) is by far the most common. Equivalent endorsements covering ongoing operations can be identified either based on the alphanumeric code in the upper right hand corner of the form or based on the actual textual content.

The section of an endorsement that specifies what type of operations are covered is typically labeled in all capital letters WHO IS AN INSURED. The most common phrase indicating that Ongoing Operations are covered reads “in the performance of your ongoing operations,” though other phrases can be employed to accomplish the same purpose.

Additional Insured Endorsement: Completed Operations

Completed Operations coverage encompasses all liability arising from a contractor’s finished product or work once operations on premises cease. For example, if a roofing company re-tiles the roof of a commercial retail building and then the roof collapses as a result of their work a week after the job was completed, the liability for any bodily injury or property damage caused by this incident would be covered if the firm has coverage for Completed Operations.

An Additional Insured Endorsement for Completed Operations (i.e. CG 2037 or equivalent) would extend this same coverage to whichever persons or organizations are classified as additional insureds by the endorsement.

In the example above, if someone injured during the roof collapse decided to sue the landlord, but the landlord was listed as an additional insured on an Additional Insured endorsement for Completed Operations on the roofing company’s General Liability policy, the landlord would then be shielded by the insurance policy.

Getting an AI endorsement specifically covering completed operations is important because many common endorsements explicitly exclude additional insured status from applying to completed operations.

Missing Additional Insured Endorsement covering Completed Operations (CG 2037 or equivalent)

Additional Insured Endorsements covering Completed Operations come in many different forms depending on the insurer, but CG 2037 (see below) is by far the most common. Equivalent endorsements covering Completed Operations can be identified either based on the alphanumeric code in the upper right hand corner of the form or based on the actual textual content.

The section of an endorsement that specifies what type of operations are covered is typically labeled in all capital letters WHO IS AN INSURED. The most common phrase indicating that Completed Operations are covered reads “products-completed operations hazard,” though other phrases can be employed to accomplish the same purpose.