CG 21 53: Designated Ongoing Operations Exclusion Explained

CG 21 53 excludes Coverage A bodily injury and property damage arising from ongoing operations described in its schedule. It applies whether the insured performs those operations or someone performs them on the insured's behalf, and whether the work is for the insured or for others.

The schedule is central. It identifies the excluded operations and may identify a location. Without a scheduled location, the exclusion follows those operations wherever they are performed.

How does CG 21 53 work?

The 01 96 form adds an exclusion to Coverage A for injury or damage arising from the scheduled ongoing operations. A publicly available Hiscox specimen shows the schedule and explains that the exclusion applies to work conducted by the insured or on its behalf.^[1]

Insurers can use the schedule narrowly, such as one type of work at one project, or broadly, such as all construction operations. A New York court enforced the endorsement where the scheduled description reached construction and demolition operations, illustrating why the actual entry cannot be replaced by a generic form summary.^[2]

What does a specified location change?

If the schedule names a location, the exclusion applies only to the described ongoing operations at that location. If no location appears, it applies to the described operations regardless of where the insured or someone acting on its behalf performs them.

For this form, location generally joins premises on the same or connecting lots, even when separated by a street, roadway, waterway, or railroad right-of-way. Contractors should compare the scheduled description and site boundary with every contract and job list.

Is this the same as a wrap-up exclusion?

No. CG 21 54 addresses designated operations covered by a consolidated or wrap-up insurance program and may reach ongoing and completed operations as specified by that form. CG 21 53 is the designated ongoing operations exclusion. The two should not be treated as interchangeable.

Public insurance requirements sometimes prohibit CG 21 53 alongside other restrictive construction endorsements because it can conflict with required premises and operations coverage.^[3] If a project is insured under a wrap-up, confirm which policy covers the work while it is underway and after completion, for how long, and with what limits.

This guide is for educational purposes and summarizes standard ISO policy language in original words. Menlo Insurance Services is not affiliated with Insurance Services Office, Inc. Your policy's terms, schedules, and endorsements control. Talk to a licensed broker about your actual operations and projects.

The Bottom Line

CG 21 53 can remove Coverage A for a scheduled activity while it is underway. The description of operations, any specified location, work performed on the insured's behalf, and separate completed-operations arrangements all require review.