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When you’re a contractor working in New York City, the rules and insurance requirements can feel like a never-ending maze. Between the City’s licensing renewal process, permit requirements, and your own commercial general liability (CGL) policy endorsements, it’s easy to think you’re covered when you may actually be leaving dangerous gaps.
Two common questions come up again and again:
1. If my CGL policy includes CG 20 10 and CG 20 38, will the City of New York automatically be covered as an additional insured if the contract says so?
2. When I renew my contractor’s license with the NYC Department of Buildings, am I required to list the City for both ongoing operations and completed operations—or just ongoing?
Let’s break this down clearly, step by step.
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The Contract and the Policy – How They Work Together
The City of New York often requires contractors, by written contract, to name the City, its officials, and employees as additional insureds. That’s the legal side. On the insurance side, your CGL policy has to include the correct endorsements to make that happen.
The Key Endorsements
• CG 20 10 – Additional Insured – Owners, Lessees or Contractors – Scheduled Person or Organization. The 11/85 version included completed operations, but more recent versions (e.g., 04/13) limit coverage to ongoing operations unless you also have CG 20 37.
• CG 20 38 – Additional Insured – Automatic Status for Other Parties When Required in Written Construction Agreement. This extends coverage automatically to any party required by a written construction agreement, signed before work begins. But it still only covers ongoing operations.
If your contract says the City must be an additional insured, and you have CG 20 38 (or CG 20 10 with the City scheduled), they will be covered for ongoing operations. If the City also wants completed operations coverage, that’s a different endorsement—usually CG 20 37.
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What the “Insured Contract” Definition Covers
This is another piece of the puzzle. Your CGL policy’s definition of “insured contract” includes agreements where you assume the tort liability of another party for bodily injury or property damage. This applies to indemnification clauses you sign with the City.
Important: “Insured contract” coverage is not the same as “additional insured” coverage. Insured contract protects you when you’ve agreed to pay for someone else’s liability. Additional insured coverage protects the other party directly under your policy.
With the City, you usually have both:
• Indemnification (covered if it meets the insured contract definition)
• Additional insured status (covered if the right AI endorsements are in place)
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What the NYC Licensing Rules Actually Require
The New York City Department of Buildings has its own rules when you renew your contractor license. These are spelled out in 1 RCNY § 104-02(d)(3).
Here’s the key part:
• You must provide proof of General Liability insurance.
• The City of New York (and its officials and employees) must be named as additional insureds for work to be performed under any permits issued.
• The forms they reference—CG 20 12 or CG 20 26—are ongoing operations only.
That means you are not required by the City’s licensing rule to name the City as an additional insured for completed operations. The requirement is strictly for ongoing work, not after the work is finished.
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Why This Matters
If you assume you’ve got the City covered for completed operations just because you have CG 20 10 or CG 20 38, you may be wrong.
• City Licensing Requirement: Ongoing ops only.
• Many City Contracts: May require both ongoing and completed ops—but you won’t meet that second requirement unless you have CG 20 37 or an older CG 20 10 that includes completed ops.
If you miss that, you could be in breach of contract with the City, and worse, you could face uninsured claims for completed work.
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Practical Example
Imagine you install HVAC systems in a municipal building.
• Six months later—long after you’ve finished—something goes wrong, causing water damage.
• The City is sued and tenders the claim to your insurer under your additional insured agreement.
• If you only had CG 20 38 or CG 20 10 (04/13), the insurer could deny AI coverage because it’s a completed operations claim.
You would then be on the hook, either through your own liability or through your indemnification obligations.
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Best Practices for New York City Contractors
1. Review your contracts carefully – Check whether the City is asking for completed operations coverage in addition to ongoing operations.
2. Match the endorsements to the requirements – If completed ops are required, make sure you have CG 20 37 or a CG 20 10 version that still provides it.
3. Don’t confuse insured contract with additional insured – Both matter, but they are different coverages.
4. Renewal requirements ≠ full contract requirements – The City’s licensing renewal rule is only a baseline for ongoing ops, not the whole picture.
5. Work with an insurance specialist – NYC construction insurance is full of traps. One wrong assumption can cost you millions.
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How BGES Group Can Help
At BGES Group, we specialize in insuring New York and Tri-State contractors. We understand the City’s licensing requirements, the nuances of ISO additional insured endorsements, and how to structure your policies so you’re protected for both ongoing and completed operations—if your contracts demand it.
We regularly help contractors:
• Avoid coverage gaps with the City of New York and other municipalities.
• Negotiate contract terms so insurance requirements are realistic and insurable.
• Secure policies that satisfy both DOB licensing requirements and project-specific demands.
Don’t risk finding out you’re uncovered after the claim hits. We’ll review your contracts, endorsements, and renewal requirements so you know exactly where you stand.
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Contact BGES Group Today
BGES Group
Specialists in New York & Tri-State Contractor Insurance
📞 Gary Wallach: 914-806-5853
Your reputation, your projects, and your financial security depend on getting this right. Let us make sure you are.