CG 20 28: Additional Insured for a Lessor of Leased Equipment

CG 20 28 adds a scheduled equipment lessor as an insured for limited liability arising from the named insured's maintenance, operation, or use of the leased equipment. It is commonly requested when a business rents or leases machinery and the equipment owner wants protection under the lessee's CGL policy.

What does CG 20 28 do?

The endorsement modifies who is an insured under the CGL policy. It protects the scheduled lessor only for qualifying bodily injury, property damage, or personal and advertising injury connected to the named insured's maintenance, operation, or use of the scheduled equipment.

An insurance education guide identifies CG 20 28 12 19 for this purpose and explains the causation, law, contract-breadth, lease-expiration, and limit restrictions.^[1]

For example, if rented lifting equipment allegedly injures a visitor while the lessee is operating it, the lessor may be named in the lawsuit. CG 20 28 can provide limited status. It does not cover liability caused solely by the lessor and unrelated to the lessee's conduct.

What does it not cover?

CG 20 28 does not pay for physical damage to the rented machine simply because the owner is an additional insured. Additional insured status concerns liability to third parties. The lease may separately require equipment coverage, inland marine insurance, a loss-payee provision, or a damage waiver.

The standard endorsement also excludes occurrences after the equipment lease expires. Review extensions, renewals, holdover use, and the actual return date instead of assuming the original schedule remains accurate.

How does CG 20 28 differ from CG 20 34?

CG 20 28 schedules the lessor and leased equipment. CG 20 34 provides automatic status when a written lease agreement with the named insured requires it. A Risk & Insurance Education Alliance guide lists both forms and their separate scheduled and automatic functions.^[2]

Before accepting either, compare the lease requirement, form trigger, edition, lessor name, equipment identifiers, and dates. If the contract requires primary and noncontributory wording or a waiver of subrogation, those are separate policy questions.

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, equipment lease, and attached endorsements control. Talk to a licensed broker about your actual equipment.