Contractors – IMPORTANT Exclusions to know! Part 2

Classification Limitation Exclusion –Insurers are introducing more limiting endorsements to their CGL policies than ever before. You need to be aware now more than ever about which of your activities are covered and which aren’t, so when an accident happens you won’t be left without coverage you thought you had.


One dangerous exclusion is the classification limitation endorsement, CGL 441 01 13. This exclusion endorsement ordinarily reads “Coverage under this policy is specifically limited to those classification codes listed in the policy. No coverage is provided for any classification code or operation performed by the named insured not specifically listed in the Declarations of the policy.” These endorsements primarily appear in non-admitted markets where riskier activities need coverage.


Coverage is thus limited to those class codes listed in the policy and if the nature of an activity of the insured does not match this code, then the insurer is most likely to deny defense and coverage. Simple slip and fall accidents which CGL is known to cover suddenly becomes not covered if the slip and fall did not occur during a coded activity. It is because of this that we at Kirkwood Insurance will work to limit these exclusions so coverage is as broad as possible.