Before releasing a mobilization or progress draw to a 1099 subcontractor, US General Contractors must collect and verify ACORD 25, ISO CG 20 10 (or CG 20 38), ISO CG 20 37, ISO CG 20 01, ISO CG 24 04, WC 00 03 13, and the Policy Schedule of Forms (IL 12 01).
ISO CG 20 10 extends Additional Insured status to a scheduled General Contractor or Project Owner strictly for ongoing operations while the subcontractor is actively working on site. Coverage ends the moment work finishes, so US General Contractors must always pair CG 20 10 with CG 20 37 (Completed Operations).
Exposure: $50,000–$2,000,000 in uncovered third-party bodily injury defense costs and immediate carrier reservation of rights.
ISO CG 20 37 grants a General Contractor or Owner Additional Insured coverage under the subcontractor's Products-Completed Operations Hazard after construction finishes. Without an attached CG 20 37 endorsement, post-closeout roof leaks, fires, and construction defect tenders are denied even if ADDL INSD is checked on the ACORD 25.
Exposure: $120,000+ average residential/commercial defect defense tender rejection.
ISO CG 20 33 grants automatic Additional Insured status only to entities in direct written contract ("privity") with the subcontractor—leaving the Project Owner and Lender uninsured. ISO CG 20 38 solves the privity trap by extending ongoing operations AI status to upstream Owners and Lenders required by the subcontract.
Exposure: $150,000–$1,500,000 contractual breach and upstream Owner defense tender rejection.
ISO CG 22 94 is a severe construction exclusion that deletes the standard CGL "subcontractor exception" to the Damage to Your Work exclusion. When CG 22 94 (or CG 22 95) is attached to a policy, any property damage caused by or to sub-tiered subcontractor work has zero insurance coverage.
Exposure: Total denial of construction defect coverage for any sub-tiered labor, passing 100% of damage costs to the General Contractor.
ISO CG 24 04 prevents a subcontractor's General Liability insurer from suing the General Contractor or Project Owner in subrogation to recoup claim payouts. Checking "SUBR WVD" on an ACORD 25 does not bind the carrier; the executed CG 24 04 endorsement must be attached before loss occurs.
Exposure: $250,000+ carrier cross-suit indemnification tender against the General Contractor.
Form WC 00 03 13 waives the Workers' Compensation insurer's statutory lien and right to sue the General Contractor to recover medical and lost-wage benefits paid to an injured subcontractor worker. Note that Kentucky bans WC waivers by statute, while Texas, California, and most states enforce scheduled or blanket WC 00 03 13.
Exposure: $500,000+ statutory medical and indemnity lien recovery suit against the General Contractor.
ISO CG 20 01 amends the CGL "Other Insurance" clause so the subcontractor's policy responds first (primary) and waives any right to demand equal or pro-rata contribution from the General Contractor's own General Liability policy, protecting the GC's deductible and 5-year loss runs.
Exposure: $25,000+ commercial deductible / SIR spike and 5-year loss run blemish on the General Contractor's policy.
The Policy Schedule of Forms (such as ISO IL 12 01 or carrier Forms Schedule) is the master index listing every endorsement and exclusion attached to an insurance policy. Auditing the Schedule of Forms is the only reliable way to catch hidden Page-28 E&S exclusions like Action-Over, Residential, or CG 22 94.
Exposure: $500,000+ latent exclusion discovery during active litigation.
An Action-Over (or Injury to Employees/Contractors) exclusion strips Employers' Liability / insured-contract coverage when an injured subcontractor worker sues the General Contractor or Owner and the GC tenders defense back to the subcontractor's CGL policy—leaving the GC 100% exposed to multi-million-dollar bodily injury verdicts.
Exposure: $1,000,000 to $5,000,000+ catastrophic third-party bodily injury liability.
Residential, Condo, and Habitational exclusions void General Liability coverage for any work performed on single-family homes, townhomes, condominiums, apartments, or mixed-use buildings with residential units—even when the subcontractor's ACORD 25 displays active $1M/$2M commercial limits.
Exposure: $750,000+ uncovered HOA or homeowner construction defect litigation.
An ACORD 25 Certificate of Liability Insurance is an informational summary only—it is not an insurance contract and cannot amend policy terms. To pass annual carrier audits and secure legal defense, General Contractors must verify limits, exact legal entity names, Workers' Comp active dates, and attached ISO endorsements.
Exposure: $15,000–$85,000 average uninsured payroll surcharge during annual Workers' Comp and GL premium audits.
During an annual Workers' Compensation or General Liability premium audit, any 1099 subcontractor paid while uninsured—or whose COI expired even one day before check disbursement—is reclassified as the General Contractor's own direct payroll, triggering 8% to 28%+ retroactive back-premium surcharges.
Exposure: $12,000–$125,000+ in retroactive annual Workers' Comp and CGL uninsured-subcontractor audit back-premiums.