CG 25 04: Designated Location Aggregate Explained

CG 25 04 changes how the general aggregate limit applies under a commercial general liability policy. For covered claims attributable only to operations at one location listed in the endorsement, that location receives its own general aggregate equal to the amount shown in the declarations.

The form is useful for businesses with several premises because a claim at one scheduled location generally does not reduce the separate aggregate for another. It does not multiply every limit in the policy or create separate completed operations aggregates.

How does CG 25 04 allocate limits?

The 05 09 endorsement gives each scheduled location a separate aggregate for Coverage A damages and Coverage C medical expenses attributable only to operations there.^[1] Payments assigned to that location reduce its aggregate without reducing the aggregate available at another designated location.

If a claim cannot be attributed only to one designated location, it follows the policy-wide aggregate structure. The endorsement also leaves the each occurrence, damage to premises rented to you, and medical expense limits in place. A separate aggregate therefore does not increase the most the insurer can pay for one occurrence.

What counts as a location?

The endorsement defines a location by premises on the same or connecting lots. A street, roadway, waterway, or railroad right-of-way between premises does not necessarily make them separate locations. The actual schedule matters more than an address list or certificate shorthand.

This is why a multi-site owner should compare the schedule with leases, statements of values, and operations. A newly acquired or omitted address should not be assumed to have its own aggregate until the policy confirms it.

How is CG 25 04 different from CG 25 03?

CG 25 04 is organized around designated locations. CG 25 03 is organized around designated construction projects and applies its separate aggregate to ongoing operations at those projects. A public construction requirement may mention either form as a way to apply the aggregate separately to a project or location.^[2] They are not interchangeable unless the contract and policy schedule support the same exposure.

Neither standard form creates a separate products-completed operations aggregate for every location or project. Under CG 25 04, covered completed operations damages continue to reduce the products-completed operations aggregate.^[3]

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 specific terms, conditions, schedules, and endorsements control. Talk to a licensed broker about your actual locations and limits.

The Bottom Line

CG 25 04 can keep general aggregate capacity at one scheduled location from being consumed by claims assigned solely to another. Confirm every location in the schedule and remember that occurrence limits and the products-completed operations aggregate do not become separate by location.