In New York’s complex construction world, subcontractors are regularly required to include multiple parties as Additional Insureds (AIs) on their Commercial General Liability (CGL) policies. But what many don’t realize — until it’s too late — is that despite providing all the right paperwork, not everyone may actually be covered.
Let’s break it down through a real-world example — and show you what you can do to protect yourself, your clients, and your reputation.
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The Setup: A Standard Renovation Contract in New York
You’re a subcontractor hired by a general contractor (GC) to do interior and exterior renovation work on a commercial property in New York City.
The GC’s contract requires you to name the following as Additional Insureds:
• The General Contractor
• The Building Owner
• The Bank Financing the Project
• Any Assignees of the Owner or Bank
Coverage must apply to both:
• Ongoing operations (work in progress), and
• Completed operations (after your work is done)
So far, this is standard.
Your CGL policy includes these ISO forms:
• CG 20 10 04 13 – Additional Insured: Ongoing Operations (requires written contract with the party)
• CG 20 38 04 13 – Automatic Additional Insured: Ongoing Ops (for parties required by contract)
• CG 20 37 04 13 – Additional Insured: Completed Operations (requires written contract with the party)
You issue a Certificate of Insurance and endorsements. The GC checks the boxes and sends you off to work.
But here’s the trap.
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✅ Ongoing Operations – Who Is Covered?
Under CG 20 10 and CG 20 38, the following parties are generally covered while the work is in progress:
• General Contractor – ✔️ Yes
• Owner – ✔️ Yes
• Bank & Assignees – ✔️ Yes
That’s because CG 20 38 provides automatic coverage for all entities required by written contract — even if they don’t have a direct contract with you.
So far, so good.
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❌ Completed Operations – Who’s NOT Covered?
Once your work is complete and a claim arises — say, a trip and fall after job completion — only the GC is covered under CG 20 37.
Why?
Because CG 20 37 only grants Additional Insured status for completed operations to parties with a direct written agreement with you — the subcontractor.
So:
• GC – ✔️ Yes
• Owner – ❌ No
• Bank & Assignees – ❌ No
That means the building owner or bank won’t be covered under your policy for post-construction claims unless you have a separate written agreement with them.
This creates a major liability gap and can lead to denied claims, lawsuits, and breaches of contract — even when you thought you were in compliance.
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🧠 What Can You Do?
When you’re negotiating your contract with the GC, you need to get out in front of this.
Here are three ways to ensure all required parties are properly covered:
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1. Get a Signed Agreement With the Owner, Bank, and Assignees
To meet CG 20 37’s requirements, ask the GC to help you facilitate a simple one-page agreement between you and the upstream parties.
This creates the “written contract” required to trigger completed operations coverage for them.
Sample Language Below ⬇️
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2. Ask for Broader Blanket A.I. Endorsements
Some insurance companies (though not all) offer non-ISO Additional Insured endorsements that do not require direct contracts to extend completed ops coverage.
If you want this flexibility, BGES Group can help place you with a carrier that offers it.
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3. Use a Wrap-Up (OCIP or CCIP)
If the job is large enough, an Owner-Controlled or Contractor-Controlled Insurance Program can provide project-wide coverage for all parties. This eliminates AI headaches altogether.
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📄 SAMPLE AGREEMENT (To Meet CG 20 37 Requirements)
Additional Insured Agreement – Completed Operations
Between:
Subcontractor: ABC Drywall & Painting, Inc.
Owner: Midtown Capital Partners, LLC
Bank: CityWide Construction Lending, LLC
Date: July 20, 2025
1. Purpose
Subcontractor is performing renovation work at 123 Lexington Avenue, New York, NY. The Owner and Bank request to be named as additional insureds for completed operations on the Subcontractor’s Commercial General Liability policy.
2. Agreement
Subcontractor agrees to name the Owner and Bank (including their assignees) as additional insureds under endorsement CG 20 37 04 13, or equivalent, covering liability arising from completed operations.
Coverage will be provided on a primary and non-contributory basis and include a waiver of subrogation.
3. Insurance Documentation
Subcontractor shall provide a certificate of insurance showing coverage and a copy of the additional insured endorsements.
4. Term
This agreement remains effective through the applicable statute of repose for the work performed.
Signed:
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ABC Drywall & Painting, Inc.
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Midtown Capital Partners, LLC
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CityWide Construction Lending, LLC
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🤝 Build This Into Contract Negotiation
The time to handle this is before you sign the GC’s subcontract. During negotiations:
1. Flag the completed ops issue
2. Request the GC facilitate agreements with the owner and bank
3. Explain it’s a requirement under CG 20 37
4. Offer to provide the agreement template (like the one above)
When you handle this upfront, everyone is protected — and your business avoids legal and insurance headaches down the road.
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🛡️ Who Can Help You Do This Right?
BGES Group specializes in New York construction insurance. We know what GCs want, what insurance companies require, and how to close the gaps that can ruin your business.
We help subcontractors:
• Review and negotiate insurance language in contracts
• Structure insurance programs for compliance
• Provide sample agreements and legal workarounds
• Place coverage with carriers offering broader Additional Insured endorsements
• Avoid costly post-job lawsuits
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📞 Contact Us
Let’s have a quick call before your next job.
Gary Wallach
📱 914-806-5853
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A 10-minute conversation today can prevent a $500,000 problem tomorrow. Let’s make sure you’re covered — really covered — for every operation.