Employee Benefits Liability Coverage
Adds coverage for errors in administering employee benefit programs — usually orthogonal to sub COIs.
What it actually does
CG 04 35 adds Employee Benefits Liability (EBL) coverage to the CGL. EBL covers errors and omissions in administering employee benefit programs — for example, a payroll mistake that causes someone to lose health coverage, or a failure to enroll an eligible employee in a timely way.
This is rarely relevant to construction subcontract verification. It's documented here mostly because it shows up on COIs and reviewers sometimes flag it as an unfamiliar code. For most GC compliance reviews, you can note its presence and move on — it doesn't substitute for AI status, waivers, or completed-ops coverage, and its absence is not a compliance gap unless your subcontract specifically requires it.
EBL is typically written on a claims-made basis with its own retroactive date and a separate aggregate, so if your contract does require it, those details matter.
Verification checklist
- 01Note the presence of CG 04 35 but don't treat it as a compliance requirement unless your subcontract specifically asks for it.
- 02If required, check whether it's claims-made and confirm the retroactive date precedes the work.
- 03Confirm core construction endorsements (CG 20 10/37/38, CG 24 04, WC waiver) are present regardless.
Common mistakes
- ·Treating CG 04 35 as fulfilling AI or contractual liability requirements (it does neither).
- ·Flagging CG 04 35 as a problem when it's just orthogonal coverage.
Frequently asked questions
Does CG 04 35 matter for COI compliance?
Usually not. Employee Benefits Liability is unrelated to the additional-insured, waiver, and completed-operations coverages that construction subcontracts care about. Note it and move on unless your contract specifically requires EBL.
Is CG 04 35 the same as additional insured coverage?
No. It adds coverage for errors administering employee benefit plans — it has nothing to do with naming the GC as an additional insured.
Is Employee Benefits Liability claims-made?
Typically yes, with its own retroactive date and aggregate. If your contract requires it, verify the retroactive date predates the work.
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This page explains CG 04 35 in plain English for COI verification. It is informational only and is not legal or insurance advice — confirm the actual endorsement language and have your counsel or insurance agent review your specific requirements.