Examines problems with standard endorsement forms, including those that limit coverage in compliance with state laws. Irmi has teamed with webce, the leading nationwide provider of selfstudy continuing education ce for insurance professionals, to provide the highest quality ce courses for insurance agents and adjusters in all states. Dec 02, 2019 the second form is the cg 20 43, additional insured automatic status when required in written contact or agreement, which provides automatic insured status for any person or organization for. The scope of coverage provided to an additional insured depends on the language in the. That said, one area of very important insurance coverage that does not typically receive equal attention is employment. Irmi, has released the seventh edition of the additional insured book for the insurance and risk management community. A cautionary tale involving additional insured coverage. Understanding named insureds and additional insureds. Extends some protection to the additional insured under the terms and conditions of the named insured s policy. In other words, if a loss does occur due to the negligence of another party vendor, the additional insured can avoid asserting the claim under its own policy, thus keeping the loss history lower, particularly if it is not the party directly responsible. Additional insured endorsementsa potential minefield part 1. Irmi offers the most exhaustive resource of definitions and other help to insurance professionals found anywhere.
Additional insured endorsementsa potential minefield part 2. My irmi online 0 there are no products in your cart. The issue was, however, that the cgl insurance policy stated that an additional insured would be an entity with whom the contractor agreed in writing to make an. Additional insureds in management liability policies gallagher usa. Vicarious liability is liability imposed on additional insureds not for what they did, but. Irmi releases seventh edition of the additional insured book release date. Correcting the additional insured problem when named insured is. The handbook on additional insureds, second edition. Additional insured changes in the cgl may 2004 new changes to the additional insured endorsements and the introduction of a limitation to the definition of insured contract are characterized by iso as reductions in coverage. The carrier, however, argued that for purposes of the policy notice requirements, the first named insured, and the additional insureds are under one policy, and it must then follow that the named insured s breach of the notice requirement bars coverage for the additional insureds as well as for itself.
And, most companies have many different forms for adding additional insureds. Understanding named, automatic, and additional insureds in. Jack gibson is the coauthor of 11 reference works on insurance and risk management, all published by irmi, including contractual risk transfer, construction risk management, and the additional insured book. Written by highly regarded insurance experts, the additional insured book provides key insight and practical guidance into a number of cuttingedge areas that are barely touched by most other publications. The additional insured book examines approaches, problems, and caselaw associated with additional insured endorsements for property and liability insurance. Fillable online irmi releases seventh edition of the additional. Additional insured is given rights under the insured policy by the additional insured endorsement. Additional insured status carries important rights, such as the right to file a claim for damages directly against the primary insured s insurance carrier. One of the most common reasons for providing additional insured coverage is a contractual requirement. Contractual indemnity requirements alone may not be sufficient to tap coverage.
Again, the connection is not sufficientsthe injury was not caused in any way by the leased walkin freezer. Construction contracts cg 20 43 lessor of leased equipmentautomatic additional insured status cg 20 34 nonstandard automatic additional insured endorsements eligibility scope of coverage. The lessor has no coverage as an additional insured under the restaurants cgl policy for the restaurant owners injuries. A major coverage issue is whether additional insured is merely seeking. A closer look at why contractual liability and insured. Further, the general contractors cgl policy is excess based on its other insurance wording. Thus, the flow down provision so frequently relied on to provide additional insured status to the owner or architect may not. In commercial insurance the concept of named insured and additional insured is complicated. Additional insureds are usually covered via endorsements. Irmi iso forms cg 20 37 07 04 additional insured owners, lessees or contractorscompleted operations created date. It is more common to have an additional insured on a commercial general liability policy for design professionals. Additional insured entitled to be defended under general.
Even if the insurance provision is explicitly limited to any obligation to indemnify, the additional insured may be held to have unlimited rights to coverage beyond any indemnity obligation if the additional insured provision in the policy or endorsement. An additional insured is any entity, other than the primary insured, who is covered under the primary insured s insurance policy. Jan 20, 2014 irmi releases seventh edition of the additional insured book release date. Automatic additional insured statusdesignated operations cg 20 42 automatic additional insured statusnon. If you are requiring or providing additional insured endorsements, you should know what they mean. Nonetheless, the 2004 edition of isos additional insured endorsements is intended to protect the additional insured for their own liability, even if their liability is the major but not sole cause of the injury or damage, provided that the named insureds or others acting on the named insured behalf acts or omissions played a. Vendors endorsement cg 20 15 07 04, lists as an additional insured on their cgl policy a retailer vendor who sells cell makers phones.
Arguably the most impactful recent decision in the world of additional insured ai coverage is burlington ins. Additional insured endorsementsa potential minefield part 3. Written by highly regarded insurance experts, the additional insured book provides key insight and practical guidance into a number of cuttingedge areas that. General liability, workers compensation, automobile insurance, umbrella liability, etc. The eighth edition of the additional insured book, the definitive source of explanations and case law on additional insured status in liability, property, and other commercial insurance lines, is now available. Continuing education and cpe course catalog irmi insurance. How to access treatises on lexis, westlaw, bloomberg, and irmi. Do whatever you want with a irmi releases seventh edition of the additional insured book. Until 2016, he also led the editorial and training and education teams at irmi.
Additional insured endorsementssa potential minefield part 3 march 2006 part 1 of this series deals with the connection between the named insured and the additional insured and provides some areas to consider in a basic analysis of any additional insured endorsement. Offers suggestions for modifying coverage to correspond with contractual risk transfers. Additionally, your firms client cannot be an additional insured on professional liability because they are not performing professional services and does not have the risk that a design professional does. Irmi is the premier provider of risk and insurance continuing education and reference publications, and is considered the ultimate authority by leading insurance practitioners. Jun 01, 2020 an additional insured is a party added to a liability policy at the request of the named insured. This step bystep guide is not a textbook but is the perfect resource if you. Ai endorsements can, for the most part, be divided into two categories. New builders risk insurance book published by irmi. Thus, the flow down provision so frequently relied on to provide additional insured status to the owner or architect may not survive a challenge by the subcontractors insurer. Thus, the insurer for the subcontractor will defend and pay on behalf of the additional insured general contractor. Jan 21, 2014 international risk management institute, inc.
Additional insured after the work is done additional insured endorsements which. Generally, iso endorsements furnish coverage to the additional insured for liability arising out of the named insured s work, operations, or premises or some variation on that theme. The law library has additional insurance materials in print and available from computers on campus. Difference between named insured and additional insured. Jack gibson is the coauthor of 11 reference works on insurance and risk management, all published by irmi, including contractual risk transfer, construction. Written by industry experts, irmi courses provide the most uptodate, practical and reliable information possible. It offers suggestions for modifying coverage to correspond with contractual risk transfers, critiques the good and potentially troublesome areas of manuscript or insurerdrafted additional insured endorsements, and explains how certificates of insurance can be used in tandem with insurance.
Written by highly regarded insurance experts, the additional insured book provides key insight and practical guidance into a number of cuttingedge. Difference between a named insured, insured, and additional. Vendor lets say a cell phone manufacturer, cell maker, inc. Im hoping that an insurance guru does pick a fight because your article makes me question my habitual rejection of the other sides occasional request to be an additional named insured, or possibly even to be a named insured most requests are simply to be an additional insured. Kealy walks the reader through memorable answers to these kinds of questions that are faced everyday by insurance professionals, attorneys, risk managers, and any business that regularly. Irmi offers you secure expertise because our staff of research analysts have over 150 years of combined experience and education in insurance and risk management. The policy contained an additional provision stating that an insured may also be a person or organization for whom contractor has agreed to provide insurance as is afforded by this policy. Many businesses cover other parties under their liability policies to fulfill contractual obligations. Additional insureds in management liability policies. A named insured s impetus for providing additional insured status to others may be a desire to protect the other party because of a close relationship with that party e. In other words, the only time an additional insured should be protected on someone elses cgl policy is if the additional insured is found vicariously liable. Irmi releases seventh edition of the additional insured book. Understanding construction insurance rates and premiums webce. Relying on its advice, many producers, risk managers, and underwriters have completely changed their approach to requiring or granting additional insured status.
In this book, attorney and insurance professional dwight m. Following form umbrella insurance commentary with bill. Additional insured must share one policy limit with policyholder. Construction contracts cg 20 43 lessor of leased equipmentautomatic additional insured status cg 20 34 nonstandard automatic additional insured endorsements eligibility scope of. Additional insured provisionsendorsements may override contractual insurance limitations. The additional insured book the risk report the mcs90 book claims operations. By granting an owner blanket, or qualified additional insured status, the professional liability insurer would be exposing itself to coverage defense and indemnification for risks, liabilities and claims which potentially may substantially exceed the coverage traditionally offered to design professionals. Additional insured and named insured are terms that usually appear on an insurance policy and are easily confused terms as they are used interchangeably by many. General contractor not entitled to additional insured coverage on. Construction industry trends for additional insureds mycoi. In general, their rights and responsibilities will be severely limited compared to a named insured. Books package betterley reports package insurance law essentials. International risk management institute irmi provides topquality education to risk. Kealy walks the reader through memorable answers to these kinds of questions that are faced everyday by insurance professionals, attorneys, risk managers, and any business that regularly deals with insurance requirements.
When one business performs work for another, the hiring company often demands coverage as an additional insured under the other partys general liability policy. Irmi s research team is composed of attorneys, former underwriters, risk managers, agents and. Additional insured is not covered for sole negligence. A practical guide free insurance articles in 25 riskconquering ideas general liability insurance pollution insurance additional insured insurance law insurance continuing education courses from irmi additional insured issues ce. Understanding named insureds and additional insureds insnerds. Jun 18, 2018 the fundamental purpose of additional insured coverage is to protect the additional insured from claims of vicarious liability, that is, liability based entirely on the relationship between two insureds, as opposed to any active negligence on the part of the additional insured. Overall, however, the issue is so complicated as to inspire a book, the additional insured book. There must be an alleged negligent act of the named. Jan 20, 2014 dallas, tx, january 21, 2014 international risk management institute, inc.
Additional insured is provided with notice of cancellation by the underwriter obvious benefit. Jun 14, 2020 an additional insured extends liability insurance coverage beyond the named insured to include other individuals or groups. Irmi iso forms cg 20 10 07 04 additional insured owners, lessees or contractorsscheduled person or organization created date. In liability insurance, additional insured status is commonly used in conjunction with an indemnity agreement between the named insured the indemnitor and the party requesting additional insured status the indemnitee. This book provides a handy crossreference for iso cgl, naics, ncci, and sic codes. The iso additional insured owners, lessees or contractorsautomatic status for other parties when required in written construction agreement with you endorsement cg 20 33 has been found in some instances to include as additional insured only those parties with which the downstream party entered a direct contract or agreement. Policyholders whose insurers use the new forms may be confronted with a couple of problems that they will need to address. Treatises and texts insurance law resources available. There are even some options to add blanket additional insureds, which cover any additional insured if required in a contract with the named insured. Irmi, is the premier provider of risk and insurance continuing education and reference services. Additional insured does not lose right to coverage based on. Irmi was the first publisher of reference content covering the field of risk finance in 1983 with the publication of risk financing, a comprehensive reference resource on all aspects of traditional and.
When it comes to commercial insurance, most business owners are very familiar with what many would agree are the staple coverage areas required to operate ones business e. Three commercial property endorsements every client should have. Apr 15, 2012 ira, this article challenges my understanding of the named insured and additional named insured negotiations. Class cross reference, insurance cancellation guide. Selfinsured retention an alternative to the insurance. To be or not to be additional insuredwebinar 427 rtfinal. Additional insured status automatic or wet blanket. An additional insured endorsement protects the additional insured under. Aug, 2009 three key commercial property endorsements are discussed in this first installment, the. There are, however, many important differences between the two and understanding these differences can help individuals avoid financial losses, litigation, and other issues t.
The concept of additional insured status is complex and can result in misconceptions, confusion, and conflict. Online continuing education and cpe course catalog for insurance professionals, cfp, cpa, enrolled agents, and tax preparers. Your current access to irmi content does not include the additional insured book. Change your entire approach to requiring or granting additional insured status with this definitive source for additional insured status and strategies. Apr 07, 2020 additional insured status reduces the impact on the loss history of the additional insured. You probably dont want to be an additional named insured.
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