Q. How does endorsement CG 22 94 Exclusion – Damage To Work Performed By Subcontractors On Your Behalf change my contractors policy?
A. This endorsement was introduced by ISO along with the 10-01 edition of the CGL policy and is now becoming widely used by insurers that write general contracting risks. It eliminates the subcontractor exception under Exclusion L and thus eliminates coverage for virtually any claim involving damage to a general contractor’s completed work.
Without the endorsement, a general contractor is covered for damage to completed work if the work was performed by a subcontractor or the work out of which the damage arises was performed by a subcontractor.
If you see this endorsement on a policy covering a general contractor, you owe it to the insured (and your E&O carrier) to make a special effort to disclose the existence and importance of this coverage restriction.