CG 20 18: Additional Insured for a Mortgagee, Assignee or Receiver

CG 20 18 adds a scheduled mortgagee, assignee, or receiver as an additional insured under a commercial general liability policy. The status is limited to that party's liability in the stated capacity and arising from the named insured's ownership, maintenance, or use of the scheduled premises.

It is liability coverage, not mortgage-property coverage and not a promise to pay a loan balance.

What does CG 20 18 do?

A lender or other party with a legal interest in premises can face a liability claim because of that role. CG 20 18 provides limited additional insured status when that party and the premises appear in the endorsement schedule.

The 12 19 form ties status to the scheduled party's liability as mortgagee, assignee, or receiver and to the named insured's ownership, maintenance, or use of the listed premises. A Risk Education Alliance guide reproduces the current form and its two-part limitation.^[1]

For example, a bank listed only as mortgagee does not become an insured for all of its operations. The claim must fit the scheduled role and premises connection, and all policy exclusions and limits remain applicable.

What does the endorsement exclude?

CG 20 18 excludes structural alterations, new construction, and demolition operations performed by or for the scheduled additional insured. If a lender takes control of a property and commissions major construction, this endorsement should not be assumed to cover that project exposure.

The form also should not be confused with a mortgageholder clause on a commercial property policy. CG 20 18 sits in the CGL policy and addresses third-party liability. Property insurance addresses direct physical loss and the mortgageholder's interest under different terms.

What should be checked on the issued form?

Confirm the exact legal name and capacity of the additional insured, the premises address, and the edition. If the schedule uses broad language such as parties required by written contract, compare it with the underlying agreement and the carrier's issued wording.

Review whether the lender also asks for property mortgageholder status, loss-payee treatment, notice rights, or evidence of limits. Those are separate requirements. A public airport policy schedule demonstrates that CG 20 18 12 19 can be issued with contract-based schedule language, but each actual policy must be read on its own.^[2]

This guide is for educational purposes and summarizes standard ISO policy concepts in original language. Form numbers and titles are used only for identification. Menlo Insurance Services is not affiliated with or approved by Insurance Services Office, Inc. Your policy, agreement, and attached endorsements control. Talk to a licensed broker about your actual exposures.