CG 24 26: Amendment of Insured Contract Definition Explained

CG 24 26 amends the commercial general liability definition of an insured contract. Its practical effect is to narrow when the policy's contractual-liability exception can apply to an agreement in which your business assumes another party's tort liability.

The endorsement does not cancel every indemnity agreement, and it does not decide whether the contract itself is enforceable. It changes the insurance analysis.

What does CG 24 26 change?

The CGL policy generally excludes liability assumed in a contract, then restores a defined category of insured contracts. Paragraph f of that definition can include part of an agreement in which the insured assumes another party's tort liability for bodily injury or property damage.

CG 24 26 04 13 adds two important conditions to that category. The injury or damage must be caused, at least in part, by the named insured or someone acting on its behalf. The assumption must also be permitted by law. A public policy packet from Kitsap County reproduces the endorsement and these conditions.^[1]

This can matter when an agreement demands indemnity for the other party's sole negligence. The contract may contain that promise, but the endorsement does not provide an unrestricted match. Whether coverage exists depends on the actual allegations, causation, governing law, and the rest of the policy.

How is it different from additional insured status?

Contractual liability concerns your business's promise to assume another party's tort liability. Additional insured status gives that party potential rights under your policy, subject to its endorsement. One does not automatically create the other.

A contract can require indemnity, additional insured status, or both. Review each requirement on its own. Do not treat a certificate naming a party as proof that the policy covers the full indemnity obligation.

What should you review before signing?

Compare the proposed indemnity clause with the policy's exact CG 24 26 edition. Identify whose conduct must cause the loss, whether the clause includes sole negligence, which state's law applies, and whether an anti-indemnity statute restricts the promise.

Also check defense language. A contractual promise to defend can create timing and cost issues that are not resolved merely by showing that CG 24 26 is attached. Counsel can assess enforceability, while a licensed broker can explain how the issued policy responds.

CG 24 26 04 13 remains identifiable in public policy inventories, including a Palm Beach County policy record.^[2] The attached endorsement, not a generic form description, controls the insured's coverage.

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 and counsel about your actual agreement.