The CG 22 94 Exclusion: A Hidden Risk for Contractors Who Hire Subcontractors
If you're a general contractor, chances are you're hiring subcontractors to help get the job done. And like many business owners, you assume your general liability insurance will protect you if something goes wrong — especially if the issue stems from a subcontractor’s work.
But that protection may be quietly stripped from your policy.
More and more insurance carriers are adding an endorsement called CG 22 94 – Exclusion – Damage to Work Performed by Subcontractors on Your Behalf, and it can leave you completely exposed to costly claims.
What Is CG 22 94?
The CG 22 94 endorsement is an exclusion that removes coverage for damage caused by your subcontractors’ work, even after the job is completed. It also eliminates the legal defense your general liability policy would normally provide if you're sued over that damage.
Without this carve-back, your policy might not cover the very thing you're being sued for — even if your subcontractor was clearly at fault.
A Real-World Example
You build homes. But like many general contractors, you rely on subcontractors to get the job done. Years later, something your sub installed turns out to be faulty—and it causes a house fire that severely damages the home.
Here’s what happens:
Without the CG 22 94 exclusion: Your general liability policy covers the claim, pays legal defense costs, and may later seek recovery from the electrician’s insurance.
With the CG 22 94 exclusion: Your policy denies the claim entirely. You’re left defending yourself and paying out of pocket — even though the work was done by someone else.
Why Are Carriers Adding This?
Insurers have taken financial hits from claims tied to underinsured or uninsured subcontractors. As a result, they’re using CG 22 94 more often — especially in riskier states and in the excess & surplus market.
Can You Get the Coverage Back?
In some states and with some carriers, yes — you can buy the coverage back. But:
Buy-back premiums vary widely
The reinstated coverage may not be as comprehensive as the original ISO policy
In a few states, no buy-back is available at any price
The better strategy? Find a carrier that doesn't apply the exclusion at all.
What Should You Do?
Here’s how to protect yourself:
Ask your agent directly if your policy includes CG 22 94 (or a proprietary version of it)
Review your subcontractor agreements and make sure your subs are properly insured
Work with an insurance advisor who can place you with carriers that offer broader coverage without nickel-and-diming you with exclusions
Final Thoughts
This endorsement might be buried in the fine print — but it has huge implications for your bottom line. If you hire subs, CG 22 94 isn’t just an insurance form… it’s a dealbreaker.
