CG 20 38 automatically adds both your direct contracting party and certain other organizations that the same written construction agreement requires you to insure. It is designed for a tiered project where a subcontract may require coverage for the general contractor, owner, or another upstream party even though your company did not sign a separate agreement with each one.
Its chain runs through one contract: you agree in writing to insure the party you work for, that agreement also requires other parties to be insured, and CG 20 38 can extend ongoing operations status to both groups.
How does CG 20 38 work?
CG 20 38 begins with the party for whom you perform operations. You and that party must have a written contract or agreement requiring additional insured status. The endorsement then reaches any other person or organization that the same agreement requires you to add. California's Joint Powers Insurance Authority explains this two-part structure in its contractual risk transfer manual.[1]
If an electrical subcontract requires the electrician to insure the general contractor and project owner, CG 20 38 can address both even without a separate owner agreement. Coverage still applies only to liability tied to the electrician's ongoing operations and meeting the form's causation requirement.
How does CG 20 38 differ from CG 20 33?
The difference is the second group of parties. CG 20 33 automatically covers the organization with whom you made the written construction agreement and for whom you perform operations. CG 20 38 starts with that same direct party, then adds other organizations the agreement requires you to insure.
A lower-tier subcontractor may promise its direct contractor that the owner and construction manager will also be additional insureds without signing agreements with them. CG 20 38 was introduced in the 04 13 edition for that structure. New York procurement guidance identifies the 12 19 edition by its full other-parties title.[2]
What does CG 20 38 exclude?
CG 20 38 is an ongoing operations endorsement. Additional insured status ends when your operations for the direct contracting party are complete, and the form excludes specified post-completion bodily injury and property damage. It also excludes claims arising from designated architectural, engineering, and surveying professional services.
The endorsement does not create completed operations protection for any tier. A contract requiring post-completion coverage needs separate wording, such as CG 20 37 or an applicable automatic form. CG 20 38 also cannot exceed what the law or written agreement permits, and it shares the policy's limits.
What should you verify before work starts?
Map every requested party to the contract clause that requires its status. Legal names matter when the owner, developer, parent company, and construction manager are separate entities. Confirm the signed agreement requires both direct and upstream parties, then compare editions.
Collect the actual endorsement with the certificate. A certificate description may list several entities, but it cannot create a missing contractual requirement or change the policy.
Frequently asked questions
Who does CG 20 38 add as an additional insured?
It can add the party for whom you perform operations under a qualifying written agreement and other persons or organizations that the same agreement requires you to insure.
Do I need a separate contract with every upstream party?
The form is designed to reach certain other parties without a separate contract with each one. Your written agreement with the direct party must expressly require you to add those other parties.
Does CG 20 38 provide completed operations coverage?
No. The standard form concerns ongoing operations and ends status when your operations for the direct contracting party are complete. Post-completion requirements need separate coverage wording.
Are CG 20 33 and CG 20 38 interchangeable?
No. Both use a written construction agreement, but CG 20 38 can reach other upstream parties required by that agreement. CG 20 33 centers on the party with whom you contracted directly.
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, contract, and attached endorsements control. Talk to a licensed broker about your actual exposures.
References
- 1.California Joint Powers Insurance Authority. “Contractual Risk Transfer Manual.” https://cjpia.org/wp-content/uploads/2022/02/Contractual_Risk_Transfer_Manual_1-2022.pdf ↩
- 2.New York State Office of General Services. “Guidelines for Insurance Requirements in Contracts.” https://ogs.ny.gov/system/files/documents/2021/10/cca_procurementcouncil_insurancerequirementsincontracts.pdf ↩