US insurance clauses and certificates for German companies
What a US customer's insurance clause really asks for, how a certificate of insurance works, and where German policies need an endorsement or a different wording.
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- Additional insured, primary and non-contributory, waiver of subrogation: covered, endorsement needed or gap
- Limits, deductibles and defence costs for claims in the USA
- Your certificate of insurance: what it can show and what it cannot
- Trigger, retroactive date and cover after the work is done
US insurance clauses and certificates in six points
A US customer's insurance requirement looks like a short paragraph in a contract and behaves like a chain of promises. The contract states what you owe, the policy says what your insurer owes, endorsements give the customer rights, and the certificate reports all of it for information. This page shows how the four layers fit together, how three published clauses differ, how to read an ACORD 25 certificate, and where the German model wording needs an endorsement or a different wording.
A certificate is not insurance, and a clause is not a policy. Before you sign, mark every line of the clause as covered, covered by endorsement or not covered, ask your insurer to confirm in writing, and only then sign. This page gives you the vocabulary, the published examples and a checklist for that work.
Key takeaways
- A certificate of insurance is not insurance. The ACORD 25 form says of itself that it is issued as a matter of information only, confers no rights upon the certificate holder and does not amend, extend or alter the cover. What a US customer really wants has to be written into the policy or into an endorsement.
- A requirement lives in four layers: the contract clause, the policy, the endorsements and the certificate. Most trouble appears between two layers, when a clause asks for more than the policy gives, or when a certificate shows more than the endorsements behind it deliver.
- There is no standard US clause. Three published university clauses answer the same questions differently: one names ISO form numbers, one limits additional insured protection to the vendor's own negligence, and the notice of cancellation they ask for ranges from 15 to 30 days.
- The German model wording stops at specific clauses. It excludes liability that goes beyond the statutory liability (A1-3.3), lists only four cases of events abroad and excludes products recognisably destined for the USA or Canada (A1-6.8.1), counts defence costs in the USA against the sum insured (A1-6.8.2) and excludes punitive damages (A1-7.19).
- Time is part of the clause. Published examples ask for cover to continue for 12 months to three years after the work (for design or build work, one may ask for professional cover up to the statute of repose), and one asks for a retroactive date on or before the start of the agreement. The trigger of your policy therefore becomes a contract question.
- Endorsements are your insurer's decision. We can ask for them and explain them, but nobody can promise them. That is why the order matters: read the clause first, ask the insurer second, sign third.
What is on this page
Four layers of a US insurance requirement
When a US customer writes an insurance clause, four different things have to line up. The clause is the customer's wish. The policy is what your insurer has promised. An endorsement changes the policy for the customer's benefit. The certificate reports the result. A requirement fails when one layer promises more than the layers behind it.
The table translates the terms you will meet into the German policies and rules behind them.
The contract clause
The customer's written requirement: which policies, which limits, which wording and which proof. It binds you towards the customer, not your insurer.
The policy
What your insurer has promised in the wording and the schedule: the insured risk, the territory, the exclusions, the sum insured and the trigger. The policy decides what is paid.
The endorsement
A change to the policy wording that gives the customer a right: additional insured status, primary and non-contributory wording, a waiver of subrogation or a notice duty. Your insurer decides whether to issue it.
The certificate
A summary of the policies on the day it is issued, often on the ACORD 25 form. It is for information, confers no rights and does not change the cover.
This page explains how to read a US insurance clause against German policies. It is a method, not an insurance product, and it is neither a coverage statement nor legal advice: which claims are insured depends on your wording, your endorsements and the facts, and the legal assessment of a contract clause belongs to your lawyer.
| Term | German counterpart | What it means | What to watch |
|---|---|---|---|
| Certificate of insurance (COI) | Versicherungsbestätigung | A short summary of your policies, often on the ACORD 25 form, issued for information. | It confers no rights and does not change the cover. Ask who issues it and how quickly. |
| Named insured | Versicherungsnehmer | The company the policy is issued to. | The company that signs the contract should be the named insured, spelled exactly as in the contract. |
| Additional insured | Mitversicherte Person oder Firma | A party added to your policy, usually the general liability policy, that gets some rights under it without buying the cover. | The rights depend on the endorsement wording: ongoing or completed work, and what must have caused the loss. |
| Primary and non-contributory | No fixed term; compare Subsidiaritätsklausel and Mehrfachversicherung | Your policy responds first, and the customer's own policy does not share the loss. | Whether your wording makes the policy pay only after other insurance. |
| Waiver of subrogation | Regressverzicht | Your insurer waives its claim against the customer for what it has paid. | Usually an endorsement. Ask for which policies it can be added. |
| Hold-harmless or indemnity clause | Freistellungsklausel | A contract term in which you promise to carry the customer's loss or to defend it against third-party claims. | A contract term, not an insurance product. The GDV model excludes liability that goes beyond the statutory liability (A1-3.3). |
| Occurrence and claims-made | Ereignisprinzip and Anspruchserhebungsprinzip | Occurrence: an event during the policy period triggers the cover. Claims-made: the claim must be made during the policy or the reporting period. | The GDV model for general liability is event-based (A1-3.1). US clauses name the basis and sometimes a retroactive date. |
| Retroactive date and tail | Rückwärtsdeckung and Nachmeldefrist | The date from which earlier acts are covered, and the period after the policy ends in which claims can still be reported. | One published clause asks for a retroactive date on or before the start of the agreement, and published clauses ask for cover for 12 months to three years after the work; for design or build work, one university may require professional cover up to the statute of repose. |
| Limit per occurrence and aggregate | Versicherungssumme and Jahreshöchstersatzleistung | The most the insurer pays for one event and for all events in the policy year. | The GDV model leaves the annual multiple blank (A1-5.2). Compare the figures in dollars, at today's rate. |
| Deductible and self-insured retention | Selbstbeteiligung | The share of each loss that stays with you. | One published clause needs the university's approval above USD 25,000. For claims in the USA the model counts defence costs towards the deductible (A1-6.8.4). |
| Umbrella or excess liability | Exzedentenversicherung or Excess-Deckung | Extra limit above the underlying liability policies. | Ask whether it follows the same terms and the same endorsements as the underlying policy. |
| Admitted and non-admitted (surplus lines) insurer | No German counterpart | An admitted insurer is authorised in the US state. Surplus lines insurers are non-admitted. | Surplus lines policyholders have no state guaranty fund protection (NAIC). The customer decides whether a German insurer is acceptable. |
Closest counterpart, not identical: terms and wordings differ by insurer and by US state. The GDV model is a non-binding template. Clause numbers refer to the GDV model wording for business and professional liability insurance, as read on 30 October 2026.
Seven building blocks of a US insurance clause
Insurance clauses in US contracts look different from one customer to the next, but most are built from the same seven blocks. Reading a clause block by block turns a page of legal text into a list of questions for your insurer.
The table names the blocks, says what each one asks, and says what to compare it with in a German policy.
A clause asks three things at once: who is protected, who pays first, and for how long. The wording of the clause, and of the endorsements behind it, decides whether the limits you buy are really available to the customer and for which claims. That is why the same figure in two contracts can mean two different things.
| Building block | What the clause asks | What to compare in your policy |
|---|---|---|
| 1. Policies and limits | Which policies you must carry and the minimum limits: general liability, often with an annual aggregate and a products and completed operations aggregate, and sometimes professional liability, cyber, umbrella or excess liability and auto. The published examples ask for USD 1M per occurrence and USD 2M in the aggregate for general liability. | The sums insured in your policy schedule, converted at today's rate. The GDV model leaves the annual maximum, a multiple of the sum insured, blank (A1-5.2), so read the figure in your own policy. |
| 2. Form of cover | Occurrence or claims-made, and for claims-made cover the retroactive date. One published clause asks for occurrence-based general liability on a named ISO form edition (CG 00 01, 2007) or an equivalent. | The trigger of each policy. The GDV model for general liability is event-based (A1-3.1): what counts is the event that causes the damage, not the date of the claim. Professional liability policies are often claims-made, so check the trigger and the retroactive date policy by policy. |
| 3. Who is protected | Additional insured status for the customer, sometimes for its directors, affiliates or lenders as well. The clause may name ISO endorsement forms (one published clause names CG 20 10 and CG 20 37) or ask for additional insured status in general terms. | Whether your insurer will issue the endorsement, blanket or scheduled, for ongoing work only or for completed work too, and how far it reaches. Wording that covers loss arising out of your work goes further than wording limited to loss caused in whole or in part by your acts or omissions. |
| 4. Order of payment | Primary and non-contributory: your policy pays first, and the customer's own insurance does not share the loss. Two of the three published clauses ask for it, and the Kansas text does not mention it. | Your other-insurance condition: does your policy pay first or only after other insurance, and can an endorsement change that? In ISO terms the form is CG 20 01, which according to the form library does not itself grant additional insured status. |
| 5. Recourse | Waiver of subrogation: your insurer gives up the right to recover what it paid from the customer. Kansas asks for it by endorsement, Louisiana on every required policy, and the University of California text we read does not mention it. | Whether your insurer will add a waiver, for which policies, and for named parties or for anyone with a written contract (ISO CG 24 04 is the scheduled form, CG 24 53 the blanket alternative, according to form libraries). The ACORD 25 notes that certain policies may need an endorsement. |
| 6. Insurer and money | A minimum rating for the insurer (one published clause: A.M. Best A- VII, unless approved otherwise) and rules on deductibles and self-insured retentions (the same clause needs approval above USD 25,000). A foreign-vendor page of an Indiana public university accepts policies in other currencies if the dollar minimums are met at current exchange rates. | The rating of your insurer and the deductible in your policy. The GDV model counts defence costs for claims in the USA towards the deductible (A1-6.8.4). Whether a German insurer is acceptable is the customer's decision: ask before you sign. |
| 7. Time and proof | How long cover must continue after the work (published examples: at least 12 months, or three years), the retroactive date, the notice of cancellation (15 to 30 days in the three clauses), and the proof: certificates, endorsement pages and sometimes certified policy copies, before the work starts. | The end date and any run-off of your policy, whether your insurer will give notice of cancellation to the customer (a certificate cannot promise it), and a calendar for the endorsements, which have to be issued again when the policy is renewed. |
Published examples as read on 30 October 2026. Wording differs by customer, by state and by contract. The GDV model is non-binding. The ISO form numbers are known to us from third-party form libraries, not from the forms themselves.
Reading a clause in four passes
Pass 1: the policies
Underline every policy and every limit. Write them in a list next to your own schedule and convert the dollar figures into euro at today's rate. Note which policies you do not have yet.
Pass 2: the promises
Mark every right the customer asks for: additional insured status, primary and non-contributory wording, a waiver of subrogation, a notice of cancellation. Each one needs an endorsement or a policy term, not a sentence on a certificate.
Pass 3: the time
Find the trigger, the retroactive date and the period after the work. Compare them with the end date of your policy and the run-off it allows.
Pass 4: the proof
Find what you must hand over and when: certificates, endorsement pages, policy copies. Ask your insurer for the drafts before the deadline, not on the day.
Three published clauses side by side
Public universities publish their insurance requirements for vendors, which makes them the best open examples of what a US customer may ask a supplier to carry. The table sets three of them side by side. They are examples of the pattern, not the clause in your contract, and a cell that says not addressed refers only to the text we read.
The pages are linked in the Sources section.
| Topic | Kansas public university | Louisiana public university | University of California |
|---|---|---|---|
| General liability | USD 1M per occurrence and USD 2M aggregate, including contractual liability and products and completed operations. | Occurrence basis, USD 1M per occurrence and USD 2M aggregate, on ISO form CG 00 01 (2007) or an equivalent. | USD 1M per occurrence, USD 2M general aggregate, USD 2M products and completed operations aggregate and USD 1M personal and advertising injury, with contractual liability included. |
| Professional liability | USD 1M per claim and USD 2M aggregate, when applicable, for example for design or build work. | USD 1M when applicable, USD 2M for architects and engineers. | USD 2M per occurrence or claim and USD 2M aggregate, if applicable. |
| Umbrella or excess | USD 5M per occurrence, following form over general liability, auto and employer's liability. | An umbrella may be used to meet the minimums. A separate umbrella or excess policy of USD 5M per occurrence and aggregate may be required, depending on the scope of the work. | No umbrella or excess requirement in the text we read. |
| Cyber and technology | USD 5M for each wrongful act, when applicable. | USD 2M per claim when third parties handle protected data. | Four tiers by protection level of the data: USD 500K, USD 1M, USD 5M, and USD 10M for 70,000 records or more, if the data security appendix applies. |
| Additional insured | The university and its Board of Regents, by endorsement. | An endorsement at least as broad as ISO CG 20 10 11 85, or CG 20 10 and CG 20 37 (2004 edition or later). | The Regents, on general liability and auto, and only in proportion to and to the extent of the vendor's own negligence. |
| Primary and non-contributory | Not addressed in the text we read. | The vendor's insurance is primary, and the university's insurance is excess and does not contribute. | The certificate must state that the cover is primary and does not participate with the university's insurance. |
| Waiver of subrogation | By endorsement. | On every required policy. | Not addressed in the text we read. |
| Insurer quality | Not addressed in the text we read. | A.M. Best A- VII or better, unless the university approves otherwise. Admitted status is not addressed. | Not addressed in the text we read. |
| Notice of cancellation | 30 days (10 days for non-payment). If the insurer will not give notice, the contractor or broker must notify the university within 7 days of learning of the cancellation, suspension or non-renewal. | 30 days, for cancellation or non-renewal. | At least 15 days' advance written notice of any modification, change or cancellation. |
| Cover after the work | Claims-made cover for at least 12 months after completion or termination. For design or build work, the university may require proof of professional cover up to the statute of repose. | Professional and cyber cover continue for 3 years after the agreement ends. | Claims-made cover continues for 3 years after the agreement ends, with a retroactive date on or before the start of the agreement. |
| Proof before the work | Evidence before the service starts. Certificates and additional insured endorsements on request. | Certificates with the endorsements. Certified policy copies on request. Accepting a certificate that does not comply waives nothing. | Certificates and the relevant endorsement pages before the work begins. |
Read on 30 October 2026 from three public university pages. The metadata of the Kansas page shows November 2021 as the last modification; the other two pages show no date or version, and the University of California text is reproduced on a campus procurement page, not checked against the official version. Terms change. These are examples, not the clause you will receive.
There is no standard clause. The three universities ask for similar general liability limits and differ on almost everything else: who is protected and how far, whether the customer's insurance shares the loss, how long cover must last after the work and how much notice of cancellation is owed. A separate page of an Indiana public university sets terms for vendors outside the USA and Canada: USD 1M each for general liability, products, professional liability and auto, policies in other currencies accepted if the dollar minimums are met at current exchange rates, no start of services and no payment until the certificates are approved, and the purchase order number in the description of operations.
The ACORD 25 box by box
The ACORD 25 certificate of liability insurance is a form that many US customers ask for. It looks like proof, and it is a summary. Knowing what each box shows, and what it leaves out, tells you what to check before you send a certificate or accept one.
The table follows the form from top to bottom. The 2025/12 edition was read on 30 October 2026.
The ACORD 25 says of itself that it is issued as a matter of information only. It confers no rights upon the certificate holder, it does not amend, extend or alter the coverage of the policies listed, and it is not a contract between the insurers, the producer and the holder. The cover remains subject to all terms, exclusions and conditions of the policies.
| Box or column | What it shows | What it does not show | What to check |
|---|---|---|---|
| Producer and authorised representative | The producer, the intermediary who issues the certificate, and the authorised representative who signs it. | That the signatory can promise more than the policy gives. The form says it is not a contract between insurers, producer and holder. | Who issues the certificate on your side, and how quickly they can turn a draft around. |
| Insured | The named insured and its address. | Whether a subsidiary or affiliate that performs the work is insured, unless the policy names it. | Name and address must match the contract exactly, including the legal form (GmbH). |
| Insurers affording coverage, with NAIC numbers | The insurer behind each policy, each with a letter from A to F and a NAIC number. | The insurer's rating, or whether it is admitted in the customer's state. | Compare the insurers with the rating that the clause asks for, and ask the customer in advance what it accepts from an insurer based outside the USA. |
| Type of insurance and policy number | Each policy by type (commercial general liability, auto, umbrella or excess, workers' compensation and employers' liability, other) with its policy number. | The policy wording, its exclusions and its endorsements. | The policy types must match the clause, one by one. List only a policy that exists: a placeholder number is not a policy. |
| Claims-made or occurrence (general liability) | Which trigger the general liability policy uses. | The retroactive date and the length of the reporting period. | Compare the trigger with the clause, and ask your insurer for the retroactive date if the cover is claims-made. |
| ADDL INSD and SUBR WVD columns | Marks showing whether additional insured status or a waiver of subrogation applies to a policy. | The wording, the form number or the edition of the endorsement. The form says that a statement on the certificate does not confer rights in lieu of the endorsement. | The mark and the endorsement behind it must agree. Ask for the endorsement pages, not only for the mark. |
| Policy effective and expiration dates | The policy period of each policy on the day the certificate was issued. | Whether the policy will be renewed, or what happens at renewal. | The expiry should reach beyond the contract term. If it does not, you need a calendar for the renewal and a new certificate. |
| Limits | The limits of each policy: each occurrence, damage to rented premises, medical expense, personal and advertising injury, general aggregate, products and completed operations aggregate, the combined single limit for auto, and the umbrella or excess limit and retention. | Whether the limits are still intact: the form notes that paid claims may have reduced them. | Compare each figure with the clause, in dollars at today's rate, and check whether the aggregate applies per policy, per project or per location. |
| Description of operations, locations, vehicles | A free text box for the contract, the project or the order number. An ACORD 101 schedule may be attached. | That any right described here exists. A statement does not confer rights in lieu of an endorsement. | Keep it short and factual. One published foreign-vendor page asks for the purchase order number here. |
| Certificate holder | The party that receives the certificate, with its address. | Any status as an additional insured. The form confers no rights upon the certificate holder. | The holder must be spelled exactly as the clause says: one published clause names the board of supervisors as the holder. |
| Cancellation | A statement that notice will be delivered in accordance with the policy provisions if a listed policy is cancelled before expiry. | A fixed notice period, or a promise of notice to the holder. | If the clause asks for 15 to 30 days, ask your insurer whether a notice endorsement is available, or agree a process. Do not rely on the certificate. |
Read from the ACORD 25 (2025/12) edition on 30 October 2026, as hosted by the New York State Department of Financial Services. Other editions and other forms differ, and a customer may ask for its own form. A certificate is not a statement of what a policy covers.
Five checks before you send or accept a certificate
Name
Check that the named insured matches the contract letter for letter, including the legal form and the address.
Numbers
Compare each limit with the clause, in dollars at today's rate, and check how the aggregates apply.
Marks
Where the clause asks for additional insured status or a waiver of subrogation, check the marks against the endorsement pages that you hold.
Words
Read the description of operations. It should identify the contract or the order, and it cannot add cover that the policy does not give.
Calendar
Note the expiry date of every listed policy and set a reminder. At renewal, or after a change of insurer, endorsements have to be issued again.
Where the German model wording stops
The GDV, the German insurance association, publishes a non-binding model wording for business and professional liability insurance, for optional use. It is built for German law and German courts, so it shows well where a US clause may ask for more than a German policy gives. It is not your policy.
The clause numbers refer to the GDV model wording for business and professional liability insurance (AVB BHV). Insurers use their own wordings, and many differ.
Promises beyond the statute
The model insures liability that arises under statutory provisions of private law (A1-3.1). It does not cover claims to the extent they exceed the statutory liability because of a contractual agreement or promise (A1-3.3), and it excludes claims aimed at performance, subsequent performance, withdrawal, price reduction or damages in lieu of performance (A1-3.2). Liability assumed by contract is insured only in narrow cases, such as the statutory liability of your landlord, lessor or lender that you take over as tenant, lessee, leaseholder or borrower (A1-6.3). A hold-harmless or indemnity clause that goes beyond what the law would impose is therefore the first place to look.
Abroad only in listed cases
The model ties the cover to the business and premises described in the policy, and premises or installations abroad need a special agreement (A1-1). Events abroad are insured only in the four cases it lists (A1-6.8.1): business trips and visits to exhibitions, congresses, fairs and markets; work or services performed in Germany or in the europäisches Ausland (the European abroad), a term the model does not define; products that reached abroad without the policyholder delivering them there; and work accidents and occupational diseases of persons hired or sent abroad where the German statutory accident insurance law applies. As we read the list, work performed on site outside Europe is not among the cases. Events in the USA, US territories or Canada caused by products recognisably destined for delivery there are excluded when the policyholder or a commissioned third party delivers them.
Defence costs and the deductible
The model counts defence costs for events abroad against the sum insured: lawyers, experts, witnesses and court fees reduce the limit instead of coming on top of it (A1-6.8.2, deviating from A1-5.5). The same applies to domestic events when the claim is asserted abroad (A1-6.9). For events or claims in the USA, US territories or Canada, a deductible applies if one is agreed, and the defence costs count towards it (A1-6.8.4). Defence in a US lawsuit can be expensive, so a limit that looks sufficient can be used up faster than the figure suggests.
Excluded, and state law differs
The model excludes claims for compensation with a penal character, in particular punitive or exemplary damages (A1-7.19). US state law differs: a broker article from WTW reports that most states allow insurance of punitive damages, at least 26 of them for directly assessed ones, while Florida, California, New York and Illinois do not allow insurance to pay directly assessed punitive damages, and Michigan, Nebraska and Washington do not allow punitive damage awards. The article dates from 2023 and the law changes, so treat the list as a pointer, not as advice. A policy that is silent should not be assumed to cover punitive damages.
Event-based cover and the annual limit
The model for general liability is event-based: what counts is the event that causes the damage during the policy, and the time the cause was set does not matter (A1-3.1). A US clause may name a claims-made trigger or a retroactive date instead. The model limits all events of an insurance year to a multiple of the sum insured, which the template leaves blank (A1-5.2). If a clause asks you to keep cover in force for 12 months or three years after the work, you have to renew the policies for that time or ask about a reporting period. The model offers cover after the end of the policy only as an optional extension for the case that the insured risk ends completely and permanently (A1-10).
Euro payments and exchange rates
The model pays in euro. If the place of payment is outside the euro area, the insurer's obligation is met when the euro amount is transferred to a bank in the euro area (A1-6.8.3). A US customer's minimums are in dollars, and one published foreign-vendor page asks that the amounts meet the dollar minimums at current exchange rates. If justified claims exceed the sum insured, the insurer bears the litigation costs in the ratio of the sum insured to the total of the claims (A1-5.6). A limit that matches the clause today can fall short after a change in the exchange rate, so compare the figures at the rate of the day and ask whether a margin makes sense.
Ask your insurer in writing, for each line of the clause, whether it is covered, covered by endorsement or not covered. A written answer from your insurer outweighs any model wording and any web page, this one included.
How well does your cover meet a US clause? The traffic-light check
This is the part of the page to use with your clause and your policies in your hands. It groups the building blocks described above into four questions: who is protected, how much is available, what the policy covers and where, and how long it lasts.
The check goes criterion by criterion. General liability, professional liability, cyber and D&O answer different risks and do not replace one another.
Who is protected, and in which order
Whether the customer is an additional insured, for ongoing and completed work, on which wording, whether your policy pays first, and whether your insurer gives up recourse against the customer.
Limits, insurer and money
Whether the limits, the umbrella, the defence costs, the deductible and the rating of the insurer match the clause, in dollars at today's rate.
What is insured, where, and for how long
Whether the policy responds to claims in the USA and to the liability you assume by contract, which trigger and retroactive date apply, how long the cover lasts after the work and what proof you can give.
A certificate that promises more than the policy
Example Sensor Systems GmbH, 40 employees, sells measurement systems to a US customer and commissions them on site. The contract asks for general liability of USD 1M per occurrence and USD 2M in the aggregate, additional insured status for the customer on ongoing and completed work, primary and non-contributory wording, a waiver of subrogation and 30 days' notice of cancellation. The broker issues an ACORD 25 that shows the limits and marks the additional insured and waiver columns.
Policy A: certificate only
The certificate was issued without the endorsements. The marks in the additional insured and waiver columns promise more than the policy gives, because a certificate confers no rights and does not change the cover. When a claim arises, the customer is not an insured under the policy, and the insurer examines only what the policy itself says. The company has signed a contract that its cover does not match.
Policy B: endorsements behind the certificate
The insurer issued the additional insured, primary and non-contributory and waiver endorsements, and the broker sent the endorsement pages with the certificate. The marks agree with the endorsements, the customer can read the wording it asked for, and the company knows which parts of the clause its policy meets. What the endorsements cover is still decided by their wording and by the facts of the claim.
Fictional company and invented figures, for illustration only. Real outcomes depend on the policy wording, the endorsements and the facts.
The traffic-light check for a US insurance clause
| Criterion | Good | Review | Gap |
|---|---|---|---|
| Who is protected, and in which order | |||
| Additional insured: ongoing work | Your insurer has confirmed in writing that it issues the additional insured endorsement for the customer, blanket or scheduled, for ongoing operations. | The endorsement is possible only for named parties, or only on a separate request: ask for the wording before you sign. | No additional insured endorsement is available, or your insurer has declined it. |
| Additional insured: completed work | Completed operations are confirmed as well, for as long as the clause asks. One published clause names two ISO forms, CG 20 10 and CG 20 37, which form libraries describe as the ongoing and the completed-operations endorsement. | Only ongoing operations are confirmed. Completed work is a separate question, because the damage may occur after you have left the site. | The customer asks for protection for completed work and nothing is available. |
| Scope of the additional insured wording | The wording matches what the clause asks for. If the clause limits protection to your own negligence, the endorsement does too. | The endorsement is broader or narrower than the clause: wording that covers loss arising out of your work reaches further than wording limited to loss caused in whole or in part by your acts or omissions. Ask your lawyer which one the contract needs. | The contract promises protection for all claims, but the endorsement protects the customer only for your own fault. |
| Primary and non-contributory | An endorsement or condition makes your policy primary and non-contributory for the customer, and your insurer has confirmed it in writing (the ISO form is CG 20 01). | Your policy pays after other insurance unless an endorsement changes that, and the request is still open. | Declined, or your wording makes the cover subsidiary to other insurance without an exception. |
| Waiver of subrogation | Your insurer has confirmed a waiver for each policy the clause names, for the named customer or for parties with a written contract (ISO CG 24 04 is the scheduled form and CG 24 53 the blanket alternative). | Possible for some policies only. The ACORD 25 notes that certain policies may need an endorsement for a waiver to apply. | Declined, or not available for a policy that the clause names. |
| Limits, insurer and money | |||
| Limits against the clause | Every limit in the clause is met by your policies, per occurrence and in the aggregate, in dollars at today's rate and with a margin. | The figures are met only with an umbrella or excess policy, or only just at today's exchange rate. | One or more limits fall short, or a required policy is missing. |
| Umbrella or excess follows form | The umbrella or excess policy follows the terms of the underlying policy, including the endorsements the customer asked for, and your insurer has confirmed it. | It is unclear whether the endorsements carry through to the umbrella: ask in writing. | The umbrella leaves out the endorsements the clause asks for, or there is none where the clause requires one. |
| Defence costs | Defence costs for claims in the USA are paid in addition to the sum insured. | Defence costs count against the sum insured, as in the GDV model for events abroad (A1-6.8.2): compare the limit with what a US lawsuit can cost. | Defence costs reduce a sum insured that is already close to the minimum in the clause, and they also count towards the deductible (A1-6.8.4). |
| Deductible and retention | The deductible is within what the clause allows, and you know how defence costs count towards it for claims in the USA. | The deductible or retention is above USD 25,000 or unclear: one published clause needs the customer's approval above that figure. | The deductible is higher than the clause allows and the customer has not approved it. |
| Insurer rating and status | Your insurer meets the rating that the clause names (one published example is A.M. Best A- VII), or the customer has accepted your insurer in writing. | The clause names a rating and you do not know your insurer's rating, or the customer has not said what it accepts from an insurer based outside the USA. | The rating is below the clause and the customer has not approved the insurer. |
| What is insured, and where | |||
| Territory and courts | The territory includes the USA and Canada, for events there and for claims asserted there or before US courts, and you hold this in writing. | The USA is covered only in certain cases, such as business trips, under separate rules (A1-6.8.1). | The policy excludes or does not list the USA or Canada, although the contract is performed or enforced there. |
| Work on site in the USA | Work, installation and service by your own staff in the USA are insured, with the limits you need, by an extension that you hold in writing. | Insured only for short stays such as business trips, or only up to a lower sub-limit. | On-site work in the USA is outside the policy. As we read the model, it lists work or services in Germany and in the europäisches Ausland, not outside Europe (A1-6.8.1). |
| Hold-harmless and contractually assumed liability | A lawyer has reviewed the clause, and your insurer has confirmed in writing what it covers of the liability you assume. | The clause goes beyond the statutory liability and your insurer has not looked at it yet. The GDV model does not cover claims to that extent (A1-3.3). | You assume liability that goes beyond the law, such as the customer's own negligence, and nothing in the policy responds. |
| Punitive damages | Your insurer has confirmed in writing how punitive or exemplary damages are treated, and the contract does not expect you to insure them. | The policy excludes them (A1-7.19) or is silent, and the contract does not mention them. | The contract or the customer expects cover for punitive damages and the policy excludes them (A1-7.19). Whether they can be insured depends on the state. |
| Time and proof | |||
| Trigger and retroactive date | The trigger of each required policy matches the clause (occurrence or claims-made). For claims-made cover, the retroactive date is on or before the start of the agreement. | A claims-made policy has a retroactive date after the start of the agreement, or the trigger is not stated in your documents. | The trigger differs from the clause and your insurer will not agree to change it. |
| Cover after the work | The policies stay in force for as long as the clause asks (published examples: at least 12 months, three years after the agreement ends, or for design or build work up to the statute of repose), and a reporting period is available where it is needed. | The period is longer than your usual run-off: ask about a reporting period and its price. | Cover ends when the policy ends, and the clause asks for more. The model offers cover after the end of the policy only as an optional extension for a complete and permanent end of the insured risk (A1-10). |
| Notice of cancellation | Your insurer has agreed in writing to give the notice that the clause asks for (published examples: 15 to 30 days), or the clause puts the duty on you and you have a process for it. | The certificate says only that notice follows the policy provisions, so no period is promised. | The clause asks for notice by the insurer and yours will not give it. Without an agreed process, the customer is not told in time. |
| Certificate and endorsements together | The certificate and the endorsement pages go out together, they agree with each other, and you keep a calendar for the renewals. | The certificate is ready and the endorsement pages are still outstanding. | The certificate shows additional insured or waiver marks that no endorsement supports. |
Consulting grid, not norms. A gap is a fact to know before you sign, not a defect that every policy has to remove. The clause of your customer decides what is needed, and your policy and its endorsements decide what you have.
Which situation, which focus?
| Your situation | Where to look first |
|---|---|
| Software or IT services for a US customer | Professional liability or Tech E&O and cyber, not only general liability: the published clauses ask for both when applicable (Kansas: professional USD 1M per claim and cyber USD 5M; University of California: professional USD 2M and cyber tiers by data protection level). Check the trigger, the retroactive date and the cover after the work. |
| Manufacturer or machinery builder selling into the USA | The products and completed operations aggregate, and the exclusion for products recognisably destined for delivery to the USA, US territories or Canada (A1-6.8.1). Ask whether product liability for the USA is insured by special agreement, and with which limit, deductible and defence-cost rules. |
| Services or installation on site in the USA | Territory first: as we read the model, it lists work or services in Germany and in the europäisches Ausland, not outside Europe (A1-6.8.1), so on-site work needs an extension that you hold in writing. Then check additional insured status, primary wording and the waiver. |
| Start-up with its first US customer | The basics in order: what the customer asks for, which of it you can meet today, and which endorsements your insurer will issue. Ask for the draft certificate and the endorsements early, because a customer may not let the work start or pay before it has approved them, as one published page says. |
| Subcontractor to a US contractor | Check whether the clause passes the prime contractor's requirements on to you, with the same limits and endorsements, and for how long. The Kansas example makes the contractor responsible for verifying the insurance of its subcontractors. |
A rule of thumb from our advisory practice; no law requires it. What you need depends on your contract, your customer and the law of the state concerned.
Three questions for your insurer
Endorsements
Will you issue the additional insured, primary and non-contributory and waiver of subrogation endorsements that our contract asks for, on which policies and with which wording, and will you send the endorsement pages together with the certificate?
Territory and costs
Does the policy cover claims in the USA and before US courts, work on site there and products delivered there, and how do defence costs and the deductible work for such claims?
Time
Which trigger and retroactive date apply, how long can the cover continue after the work, and will you give the customer the notice of cancellation that the clause asks for?
A certificate of insurance reports your policies on the day it is issued. It confers no rights and does not change the cover, so a clause is met only when the policy and the endorsements behind the certificate say what the customer asked for. Endorsements are issued by the insurer, and they have to be issued again when the policy is renewed. In the GDV model for general liability, liability beyond the statutory liability is not covered (A1-3.3), events abroad are insured only in listed cases (A1-6.8.1) and defence costs for events abroad count against the sum insured (A1-6.8.2). The model is non-binding, and your policy may differ.
Whoever starts this work on the day before the signature has little room. That is why the check belongs at the beginning of the negotiation.
For software and IT contracts
If you deliver software or IT services to a US customer, the clause often asks for professional liability or Tech E&O and for cyber cover on top of general liability. Those policies are written on a different basis, often claims-made, and they treat the USA in their own way. Our page on Tech E&O insurance in Germany explains the trigger, the retroactive date and the cover after the work.
What to have ready before you ask for a US clause check
A clause check is only as good as the documents behind it. With the clause, the policies and the facts of the contract ready, the check takes less time and the answers are concrete.
What the customer asks for
The insurance clause or the requirements table, together with the contract text it refers to: the definitions, the indemnity clause, the governing law and the term. If the customer sent a certificate form or an exhibit, include it.
What you carry now
The schedules and conditions of your general liability, professional liability or Tech E&O, cyber and any umbrella or excess policy, with the sums insured, the deductibles, the territory clauses and the end dates. Include existing endorsements and any certificate you issued before.
Where and how you work
Where the work is done (Germany, elsewhere in Europe, on site in the USA), what you deliver, the value of the contract, revenue and headcount, and the deadline for the certificate or the signature.
Typical questions we ask
- Which policies and limits does the clause name, and in which currency?
- Is additional insured status asked for on ongoing work, on completed work, or on both?
- Does the clause name primary and non-contributory wording, a waiver of subrogation or a notice period?
- Where is the work done, and do products or services go to the USA?
- When is the certificate due, and does the customer need the endorsement pages with it?
From a US clause to a certificate that holds
The example follows one contract from the clause to the signed agreement: what was asked, what the policy could give, what the insurer agreed to and what the customer received. The company and the dates are invented.
Example Filter Technology GmbH, 45 employees, sells industrial filter systems to a US customer and sends two engineers to commission them on site. The company, the customer, the dates and the figures are invented to show the process. None of it describes a real customer, and which policy would respond in a real case depends on the wordings and the facts.
Six steps from clause to certificate
Year 1, 3 March: the clause arrives
The US customer sends a draft supply and commissioning agreement. Its insurance clause asks for general liability of USD 1M per occurrence and USD 2M in the aggregate, an umbrella of USD 5M, additional insured status for ongoing and completed work, primary and non-contributory wording, a waiver of subrogation and 30 days' notice of cancellation. The certificate is due before the engineers travel.
Year 1, 5 March: the clause is read line by line
Each line is marked as covered, covered by endorsement or not covered. The general liability limits are met, an umbrella is missing, and the territory clause of the current policy follows the GDV model and does not list commissioning work outside Europe (A1-6.8.1).
Year 1, 9 March: questions to the insurer
In writing: will you extend the territory to commissioning work in the USA? Will you issue the additional insured, primary and non-contributory and waiver endorsements? Is an umbrella of USD 5M available, and does it follow the endorsements? How do defence costs and the deductible work for claims in the USA?
Year 1, 20 March: the answers
The insurer agrees to the territory extension, the waiver and the primary wording, offers the additional insured endorsement for ongoing operations only, and quotes an umbrella that follows form. Completed operations and the notice period remain open.
Year 1, 22 March: the customer is told
The company tells the customer what is in place and what is not. It proposes that the notice duty sits with the company, with a process that passes on any notice from the insurer within seven days, and asks whether additional insured status for ongoing operations is enough. A lawyer reviews the indemnity clause.
Year 1, 28 March: certificate and endorsements go out together
The customer accepts additional insured status for ongoing operations and the notice process, the company buys the umbrella and signs the contract, and the broker issues the ACORD 25 and sends it with the endorsement pages. The marks on the certificate agree with the endorsements. The company sets reminders for the renewal date and for the umbrella.
Sources: what we checked, and when
The facts on this page rest on the sources below, which we read on 30 October 2026, except section 19 VVG, which was read on 29 October 2026. The university pages are examples of published requirements, not the clause in your contract: the metadata of one page shows a last modification in November 2021, the others show no date or version, and the University of California text is reproduced on a campus procurement page and was not checked against the official version. The ISO form names are known to us from third-party form libraries, not from the forms. The articles from 2014 and 2016 are old and US law moves, so we cite them for the principles. The good, review and gap thresholds in the traffic-light table are our own consulting grid and come from no source.
Amounts, dates and companies in examples are invented.
Abbreviations: ACORD = the insurance industry body behind the certificate forms; ISO = Insurance Services Office; NAIC = National Association of Insurance Commissioners; GDV = German Insurance Association; AVB BHV = General Insurance Conditions for Business and Professional Liability; VVG = Insurance Contract Act.
| Topic | What we found | Source and date checked |
|---|---|---|
| ACORD 25 certificate of liability insurance | Issued as a matter of information only; confers no rights upon the certificate holder; does not amend, extend or alter the coverage; not a contract between the insurers, the producer and the holder. If the holder is an additional insured the policy must contain the provisions or be endorsed, and a statement on the certificate does not confer rights in lieu of the endorsement. Cancellation: notice is delivered in accordance with the policy provisions. Limits shown may have been reduced by paid claims. | ACORD 25 (2025/12), copy hosted by the New York State Department of Financial Services; checked 30 October 2026 |
| Kansas public university: vendor insurance requirements | General liability USD 1M per occurrence and USD 2M aggregate; umbrella USD 5M following form; professional USD 1M per claim and USD 2M aggregate and cyber USD 5M per wrongful act when applicable; claims-made cover for at least 12 months after completion; additional insured and waiver of subrogation by endorsement; notice of cancellation 30 days (10 for non-payment), with a duty of the contractor or broker to notify within 7 days if the insurer will not. Rating, admitted status, primary and non-contributory wording and foreign vendors are not addressed. | Kansas public university, vendor insurance page; metadata shows a last modification in November 2021; checked 30 October 2026 |
| Louisiana public university: vendor and contractor requirements | General liability on an occurrence basis, USD 1M per occurrence and USD 2M aggregate, on ISO CG 00 01 (2007) or equivalent; additional insured by an endorsement at least as broad as ISO CG 20 10 11 85, or CG 20 10 and CG 20 37 (2004 edition or later); waiver of subrogation on every required policy; primary and non-contributory; A.M. Best A- VII unless approved otherwise; notice of cancellation or non-renewal 30 days; professional and cyber cover continue for 3 years after the agreement ends; deductibles above USD 25,000 need approval; certificates with endorsements, certified policy copies on request. Admitted status is not addressed. | Louisiana public university, risk management page for vendors and contractors; no date shown; checked 30 October 2026 |
| University of California: terms of purchase, insurance article | General liability USD 1M per occurrence, USD 2M general aggregate, USD 2M products and completed operations, USD 1M personal and advertising injury; professional USD 2M if applicable; cyber tiers from USD 500K to USD 10M by data protection level; additional insured on general liability and auto, limited to the vendor's own negligence; primary and not participating with the university's insurance; at least 15 days' notice of modification, change or cancellation; claims-made cover continues for 3 years, with a retroactive date on or before the start of the agreement; certificates and endorsement pages before work. Umbrella, waiver of subrogation, rating and deductibles are not mentioned. | University of California terms and conditions of purchase, Article 9, as reproduced on a campus procurement page; no date or version shown; checked 30 October 2026 |
| Indiana public university: foreign vendors | For vendors outside the USA and Canada: general liability USD 1M per occurrence and USD 1M products, professional USD 1M, auto USD 1M. Policies in other currencies are accepted if the dollar minimums are met at current exchange rates. Services cannot start and payment cannot be made until the certificates are approved. The description of operations must include the purchase order number. Additional insured status, waiver of subrogation and insurer rating are not mentioned. | Indiana public university, foreign vendor page; no date shown; checked 30 October 2026 |
| Additional insured: practitioner view | An additional insured is a party added to another party's policy, usually the general liability policy, with rights that may be narrower than those of the named insured and that depend on the endorsement wording. Ongoing and completed operations are separate questions. Some endorsements limit protection to liability caused in whole or in part by the named insured; others are broader. A blanket endorsement is automatic for parties with a written contract, a scheduled one names them. Endorsements must be renewed, and cover can lapse unnoticed at renewal or after a change of insurer. Verify with the endorsements and declarations, not the certificate alone. | Reed Smith, practical guide, 28 April 2026; checked 30 October 2026 |
| Certificates are not proof of additional insured status | A certificate is informational, not part of the policy, gives no rights and is no proof of additional insured status. It shows one point in time and gives no assurance of notice of cancellation. Additional insured status exists only if the insurer issues the endorsement. Request the endorsement, compare it with the contract, and write notice duties into the contract or ask for a notice endorsement. | Miller Nash LLP, 3 April 2014 (more than ten years old); checked 30 October 2026 |
| Anti-indemnity statutes | Anti-indemnity statutes limit clauses that make one party indemnify another for that party's own negligence. 46 states had one in 2016. Some states, including Arizona, Colorado, Georgia, Kansas, Montana and Oregon, voided additional insured cover for the additional insured's sole negligence at that time. Courts differ on whether the statutes reach insurance procurement clauses, and the governing law of the contract matters. | IRMI, Gregory Podolak, 1 July 2016 (about ten years old, ask a US lawyer for the current position); checked 30 October 2026 |
| Admitted and surplus lines insurers | The surplus lines market consists of non-admitted insurers that write risks the admitted market does not. It includes US insurers, Lloyd's syndicates and non-US insurers on the NAIC Quarterly Listing of Alien Insurers. Surplus lines policyholders do not have state guaranty fund protection, and only licensed surplus lines brokers may place the business. | NAIC, surplus lines page, last updated 27 October 2025; checked 30 October 2026 |
| Insurability of punitive damages | Insurability depends on state law. Most states allow insurance of punitive damages and at least 26 allow it for directly assessed damages. Florida, California, New York and Illinois do not allow insurance to pay directly assessed punitive damages. Michigan, Nebraska and Washington do not allow punitive damage awards. A policy that is silent should not be assumed to cover them. | WTW article, page dated 3 March 2023 (the address contains 2021); checked 30 October 2026 |
| Insurer ratings | A.M. Best Financial Strength Rating: A++ and A+ are Superior, A and A- are Excellent (A- is the lower notch). The rating is an opinion on financial strength and the ability to meet ongoing policy obligations; it says nothing about individual policies or claims-paying practices and is not a recommendation to buy, hold or cancel. Financial Size Category VII means capital and surplus of USD 50 million to under USD 100 million. | A.M. Best, Financial Strength Rating guide and Financial Size Category guide; checked 30 October 2026 |
| ISO form names | CG 20 10: additional insured, owners, lessees or contractors, scheduled person or organisation (ongoing operations). CG 20 37: the completed-operations counterpart. CG 20 01 (12 19): primary and noncontributory, other insurance condition, which does not itself grant additional insured status. CG 24 04: waiver of transfer of rights of recovery (scheduled), with CG 24 53 as the blanket alternative. Several editions of each form exist. | Third-party form libraries (insurancexdate.com, getjones.com); we have not read the forms themselves; checked 30 October 2026 |
| German model wording for liability insurance (non-binding): scope and contract | For optional use; amounts and multiples are left blank. Insured risk, premises and subcontractors (A1-1). Event-based cover for personal injury, property damage and consequential financial loss under statutory liability provisions, whatever the time the cause was set (A1-3.1). No cover for claims aimed at performance, subsequent performance, withdrawal, price reduction or damages in lieu of performance (A1-3.2). No cover to the extent a claim exceeds the statutory liability because of a contractual agreement or promise (A1-3.3). Contractually assumed liability only in narrow cases, such as the statutory liability of a landlord, lessor or lender that you take over as tenant, lessee, leaseholder or borrower (A1-6.3). | GDV model wording, AVB BHV (German); checked 30 October 2026 |
| German model wording for liability insurance (non-binding): limits and events abroad | Annual maximum as a multiple of the sum insured, left blank (A1-5.2). Costs are not counted against the sum insured (A1-5.5), but defence costs for events abroad are (A1-6.8.2). Proportional litigation costs if justified claims exceed the sum insured (A1-5.6). Events abroad insured in four listed cases, with an exclusion for products recognisably destined for delivery in the USA, US territories or Canada (A1-6.8.1). Payment in euro (A1-6.8.3). Deductible and defence costs for the USA, US territories and Canada (A1-6.8.4). Claims from domestic events asserted abroad (A1-6.9). Data protection risk abroad only for claims asserted in the EEA, Switzerland or the UK (A1-6.13.5). | GDV model wording, AVB BHV (German); checked 30 October 2026 |
| German model wording for liability insurance (non-binding): exclusions and run-off | Punitive or exemplary damages are excluded (A1-7.19). Optional extension by special agreement: cover for events after the policy ends, if the contract ends solely because the insured risk ends completely and permanently (A1-10). | GDV model wording, AVB BHV (German); checked 30 October 2026 |
| Duty to disclose when applying for insurance | Section 19 VVG: when applying, you must report the circumstances relevant to the risk that are known to you and that the insurer asks about in text form. A breach can allow the insurer to withdraw from the contract, to terminate it or to change its terms. | VVG section 19 (German); checked 29 October 2026 |
Consulting information, not legal advice. Contracts, laws and market practice change, which is why this page carries a date.
Sources
- ACORD 25 (2025/12), certificate of liability insurance, hosted by the New York State Department of Financial Services
- Kansas public university: vendor insurance requirements
- Louisiana public university: vendor and contractor insurance requirements
- University of California: terms of purchase, insurance article, on a campus procurement page
- Indiana public university: insurance requirements for foreign vendors
- Reed Smith: navigating additional insured requirements in commercial contracts
- Miller Nash: why you need more than just a certificate of insurance (3 April 2014)
- IRMI: contractual insurance requirements and anti-indemnity statutes (1 July 2016)
- NAIC: surplus lines
- WTW: insurability of punitive damages (page dated 3 March 2023)
- A.M. Best: Financial Strength Rating guide
- A.M. Best: Financial Size Category guide
- Form library: ISO CG 20 10, additional insured, ongoing operations
- Form library: ISO CG 20 37, additional insured, completed operations
- Form library: ISO CG 20 01 12 19, primary and noncontributory
- Form library: ISO CG 24 04, waiver of transfer of rights of recovery
- GDV model wording: business and professional liability insurance, AVB BHV (German)
- VVG section 19: duty to disclose (German)
US insurance clauses and certificates: frequently asked questions
Short answers to the questions we hear most from managing directors, owner-managers and finance teams of German companies that sign contracts with US customers in English.
Two ways to your US clause check
Whether you want the full check or prefer to start with a short talk: in 15 minutes you know your next steps. No obligation, no sales pitch.
Send your clause, get your gaps
Tell us about your company and send us the insurance clause from your US contract, together with your current policies. We read them point by point against the questions on this page and show what is covered, what needs an endorsement and what is a gap, in English.
15 minutes with Jan, online
No sales call, but an honest first assessment of your situation, your options and the order of the steps. Then you decide.
Pick a timeRead it all? Then request your US clause check in 2 minutes.
You have seen how the four layers fit together, three published clauses side by side and the limits of the model wording. The last step is the simplest: a few details about your contract, then Jan replies personally, or you book a slot straight afterwards.
2 minutes · free · no obligation- Jan reads your answers personally before anyone gets in touch
- You get an honest first assessment: covered, endorsement needed or gap
- We reply in English or German, whichever you prefer
- Your insurance clause is read against your current policies, line by line