The Lawsuit the Association Thought It Was Covered For
A 220-unit condominium association required all contractors working on common elements to name the association as additional insured on their general liability policies. The requirement was in the standard contractor agreement template that management used for every hire. The COIs on file for the current painting contractor showed "Condominium Association of [Building Name] named as additional insured."
When a painting crew member was injured in a common area and filed suit against the association as well as the painting company, the association's attorney tendered the defense to the painting company's GL carrier. The carrier denied the tender.
The carrier's position: the painting company's policy had been endorsed to add additional insured status "per written contract" under form CG 20 26 - a blanket additional insured endorsement. But the carrier argued that the specific additional insured requirement in the contractor agreement constituted a "hold harmless agreement" rather than a contract requiring the contractor to add the association as an insured, and that the association was not entitled to additional insured defense under the policy terms.
The association spent $95,000 in defense costs before settling. The additional insured language on the COI had looked correct. The underlying endorsement form created a coverage dispute that cost six figures to resolve.
Why Condominium Associations Require Additional Insured Status
When a condominium association hires a contractor to work on common elements - the lobby, the parking structure, the pool, the roof, the building envelope - the association becomes legally connected to the contractor's work. If that contractor causes injury or property damage, the injured party will typically name both the contractor and the association in any lawsuit.
Without additional insured status on the contractor's policy, the association must fund its own defense from its own master policy or out of pocket. Its master policy responds - but the claim draws against its aggregate limits, creates a claims history, and drives future premium increases.
With proper additional insured status, the contractor's general liability policy:
- Provides defense coverage to the association for covered claims arising from the contractor's work
- Responds on a primary basis, before the association's master policy
- Preserves the association's master policy limits for association-specific exposures
Additional insured status is the legal mechanism that aligns insurance coverage with where the exposure actually originates: the contractor's work.
Standard Additional Insured Language in Condo Rules and Contracts
Condo associations specify additional insured requirements in multiple documents, and the language matters.
In vendor/contractor agreements:
"Contractor shall name the Condominium Association of [Name], its board of directors, officers, and property management company as additional insureds on all commercial general liability policies, on a primary and non-contributory basis, for both ongoing and completed operations."
In community rules and regulations (for unit owner contractors):
"All contractors performing work within or affecting units or common elements shall maintain commercial general liability insurance naming [Association Name] as additional insured. A certificate of insurance evidencing such coverage shall be submitted to the management office prior to commencement of any work."
Key language elements to include:
- Specific association legal name (not a shorthand or building address)
- "Primary and non-contributory" basis
- "Ongoing and completed operations" (or reference to both CG 20 10 and CG 20 37 endorsements)
- Management company named if applicable
- Board members named individually if required by the bylaws or D&O insurer
The Checkbox vs. Endorsement Problem
This is the most critical concept in additional insured compliance: the COI checkbox is not a guarantee of endorsement.
When a broker issues an ACORD 25 certificate, there is no checkbox for "additional insured." Instead, the broker types additional insured language into the Description of Operations field (Box G). This can be done accurately, inaccurately, or misleadingly - and the certificate does not prove that any endorsement was actually attached to the underlying policy.
The three most common versions of the problem:
Version 1: The generic statement. The COI states "Additional insured as required by written contract" without naming the association or referencing a specific endorsement form. This language does not confirm that an endorsement exists or that the association is actually added. If there is no underlying contract requiring the contractor to name the association as AI, the insurer may take the position that no additional insured status was triggered.
Version 2: The wrong endorsement. The policy has been endorsed under CG 20 26 (Blanket Additional Insured - Owners, Lessees or Contractors) rather than CG 20 10 and CG 20 37. CG 20 26 is a blanket endorsement that adds AI status "as required by written contract." It is subject to coverage disputes about what the contract actually requires. CG 20 10 (ongoing operations) and CG 20 37 (completed operations) are schedule endorsements naming the additional insured directly - they provide clearer, more reliable protection.
Version 3: The endorsement with limiting conditions. The endorsement has been issued but contains conditions that limit coverage in claim scenarios. Common limitations include: coverage applies only to ongoing operations (not completed operations), coverage is limited to the specific project described in the endorsement, or coverage is subject to the policy's contractual liability exclusion.
| Endorsement Type | How It Appears on COI | Risk |
|---|---|---|
| No endorsement - broker notation only | "Additional insured per contract" | Carrier may deny tender; no policy basis |
| CG 20 26 (blanket) | "Additional insured as required by contract" | Coverage dispute on what contract requires |
| CG 20 10 only | "Additional insured - ongoing operations" | Gap for completed operations claims |
| CG 20 10 + CG 20 37 (schedule) | "Additional insured - ongoing and completed ops" | Strongest position; clearest coverage |
How to Verify Actual Additional Insured Status
For major projects and high-risk vendors, verifying additional insured status requires more than reading the COI.
Request endorsement documentation. Ask the contractor's broker to provide copies of the additional insured endorsements - specifically, identify the endorsement form number (CG 20 10, CG 20 37, or CG 20 26) and request the actual endorsement page, not just the declarations.
Review the endorsement text. Confirm:
- The association's full legal name appears in the endorsement (for schedule endorsements)
- The basis is primary and non-contributory (or request a separate endorsement for this)
- Completed operations coverage is included if required
Check the basis language. If the association's contract requires "primary and non-contributory" additional insured status, confirm that language appears in the endorsement or in a separate additional endorsement addressing the primary and non-contributory requirement.
Common Deficiencies in Contractor COIs for Condos
Based on common patterns in condo COI compliance reviews, the most frequent deficiencies are:
Missing additional insured entirely - COI submitted by contractor without any AI notation; broker did not add it.
"Per written contract" only - No named insured on the AI notation; coverage depends on underlying contract language that may not trigger.
Primary and non-contributory missing - AI status confirmed but not on a P&NC basis; association's own coverage becomes contributory.
Ongoing operations only - No CG 20 37 for completed operations; gap for post-project claims.
Wrong association name - Association nickname or address used instead of legal entity name.
Management company not named - Contract requires management company as additional insured; COI names association only.
Bramble reads the association's vendor agreements and community rules, extracts the additional insured requirements, and compares the submitted COI against those specific requirements. When AI language is missing, insufficient, or incorrect, Bramble flags the specific deficiency with the contract language that is not satisfied - so the property manager knows exactly what to request from the contractor's broker.
See how Bramble verifies condo additional insured requirements.