Introduction:
Property managers, building owners, and co-ops play a critical role in overseeing construction projects and ensuring the safety and protection of their properties. When hiring contractors for such projects, it is essential for these stakeholders to request a CG 20 37 Completed Operations Additional Insured form. This form provides crucial coverage and safeguards against potential liability risks associated with completed operations. In this article, we will explore the reasons why property managers, building owners, and co-ops should prioritize requesting this specific form from contractors.
1. Comprehensive Coverage for Completed Operations:
The CG 20 37 Completed Operations Additional Insured form is specifically designed to provide coverage for liability claims arising from completed construction work. It extends additional insured status to property managers, building owners, and co-ops beyond the project’s completion. By requesting this form, these stakeholders ensure that they are protected against any potential legal disputes, property damage, or bodily injuries that may arise from completed operations.
2. Transfer of Liability:
Obtaining the CG 20 37 form allows property managers, building owners, and co-ops to transfer a portion of the liability associated with completed operations to the contractor. As additional insureds, they can access the contractor’s insurance coverage and financial resources in the event of a claim. This transfer of liability mitigates potential financial burdens and provides an added layer of protection to the property managers, building owners, and co-ops.
3. Clarification of Coverage Scope:
The CG 20 37 form clearly outlines the scope of coverage and identifies the parties covered under the contractor’s insurance policy. It specifies that property managers, building owners, and co-ops are additional insureds for completed operations, giving them the confidence and peace of mind in knowing that their interests are protected. Having this form in place eliminates any ambiguity regarding coverage and helps avoid potential disputes or gaps in insurance protection.
4. Compliance with Contractual Requirements:
Many construction contracts and agreements require contractors to provide additional insured coverage for property managers, building owners, and co-ops. By requesting the CG 20 37 form, these stakeholders ensure compliance with contractual obligations and protect their legal rights. It also helps establish a clear and transparent relationship between the parties involved, minimizing any potential disagreements or disputes related to insurance coverage.
5. Risk Mitigation and Financial Protection:
Construction projects involve inherent risks, and unforeseen incidents can lead to substantial financial losses. By requesting the CG 20 37 form, property managers, building owners, and co-ops mitigate their exposure to potential liabilities arising from completed operations. In the event of property damage, injuries, or other claims, having the appropriate insurance coverage in place can save them from significant financial hardships
and legal complexities.
Conclusion:
For property managers, building owners, and co-ops, requesting a CG 20 37 Completed Operations Additional Insured form from contractors is a crucial step in ensuring comprehensive insurance coverage and minimizing potential liability risks. This form provides clarity, transfer of liability, and compliance with contractual requirements, offering essential protection for completed construction projects. By prioritizing the inclusion of this form in their contractual agreements, property managers, building owners, and co-ops can effectively safeguard their assets, finances, and legal interests.
