CG 21 44: Limitation of Coverage to Designated Premises, Project or Operation

Legal purpose and coverage scope

The current 04 17 edition rewrites the insuring agreements. Coverage A applies only to bodily injury and property damage that occurs on the premises shown in the schedule, or the grounds and structures appurtenant to them, or that arises out of the project or operation shown in the schedule. Coverage B and Coverage C are limited in similar fashion. Operations not described in the schedule are uninsured, even when they are minor or incidental to the vendor's business.

The 07 98 edition, titled Limitation of Coverage to Designated Premises or Project, was a short paragraph that used broader "arising out of" wording for premises. Litigation over off-premises claims under that wording drove ISO to tighten the 04 17 version, which runs to a multi-part endorsement and adds operations as a separately schedulable category.

How CG 21 44 behaves in a tender or claim

A tender under a policy with CG 21 44 begins with the schedule. If the schedule lists "1450 Commerce Drive, Plano, TX" (the vendor's warehouse) and the injury happened on your jobsite, the carrier will deny coverage for the named insured and every additional insured in one letter. If the schedule describes an operation ("interior painting of commercial offices") and the vendor was applying exterior coatings on a parking structure, the result is the same.

Nothing on the ACORD 25 reveals the limitation. The limits, policy number, additional insured box and waiver box all look normal. The only evidence is on the forms schedule and the endorsement page, which is why a certificate-only review misses it every time.

When CG 21 44 is legitimate

Owner-arranged project-specific policies, and some contractor policies written for a single large project, use CG 21 44 or a carrier designated project form to keep the policy dedicated to that job. That is acceptable when the scheduled project matches yours exactly and the policy term, or an extension, runs through completion plus the completed operations period. It is also normal on a building owner's policy for one property.

The red flag is the mismatch: a vendor working at your site whose policy is limited to somewhere else, or to an operation narrower than its scope of work.

What to require or prohibit in the contract

Prohibit designated premises, project or operation limitations unless the scheduled premises or project is the Project under the contract and the scheduled operation covers the entire scope of the Work. Require the vendor to disclose any such endorsement in writing and to deliver the full forms schedule with its certificate.

• Prohibit: CG 21 44 or carrier equivalents limiting coverage to premises, projects or operations other than the Project and the Work.
• Allow by exception: project-specific policies scheduling the Project by name and address, with completed operations coverage maintained for the required period.
• Require: the complete forms schedule with every certificate, so limitation endorsements are visible before mobilization.

How Pikorua Security verifies or flags CG 21 44

Pikorua Security scans every forms schedule for CG 21 44 and common carrier variants. When it finds one, it reads the schedule entries and compares premises against the project address, projects against the project name and number, and operations against the vendor's scope tags. A mismatch is marked deficient with the reason in plain language ("Policy limited to 1450 Commerce Drive; Project is 2200 Harbor Point Blvd"), and the vendor is held at the compliance gate until the broker removes the limitation or substitutes a policy that responds.

If the schedule matches, the file is approved with a note, and the policy term is compared with the completed operations duration in the exhibit, because a project-specific policy that ends at substantial completion leaves the completed operations period uncovered.