Insured Contract Exception to Contractual-Liability Exclusion

A project owner and its subcontractors were entitled to be defended and indemnified under its contractor’s commercial general liability (CGL) policy. The “contractual liability” exclusion of the policy was not applicable because indemnity was afforded under an...

Why a Project Owner Isn’t Made an Additional Insured Under a Design Professional Policy

Design professionals do not name project owners or contractors as additional insureds under their professional liability policies. This paper from the library of articles and papers hosted on the ConstructionRisk.com website explains why. Read it here. About the...

Essential to Engage Your Insurance Broker to Review Additional Insured Endorsement Requirements in Contracts

By: Michael Herlihy, ARM, CRIS – Ames & Gough As discussed in the April, May and June editions of Construction Risk.com Reporter, the New York Supreme Court ruling in Gilbane Building Co./TDS Construction Corp. vs. St. Paul Fire and Marine Insurance/Liberty...

Professional Liability Exclusion in CGL Policy Bars A/E from GCL Additional Insured Coverage for Laborer’s Injuries From Alleged Failure to Plan for Safe Removal of Digester Tank Lid

Sparks from a cutting torch being used to remove bolts from a wastewater digester tank ignited a methane gas explosion that killed an employee of a construction subcontractor and injured an employee of another subcontractor. Both subcontractor’s were required by their...

Correcting the Additional Insured Problem when Named Insured is not in Privity of Contract with Additional Insured

The April 2017 issue of ConstructionRisk.com Report included an article about a case in which the court held that a CGL insurance carrier of a construction contractor was not obligated to defend the project owner’s construction manager as an “additional insured”...

Construction Manager is not Additional Insured under Contractor’s CGL policy Despite Owner/Prime Contract Requiring Contractor to Name CM as Additional Insured

A construction contract between a contractor and project owner required the contractor to name the construction manager (CM) as an additional insured under its commercial general liability (CGL) policy. A sample additional insured endorsement with the CM’s name typed...

Indemnification Action Only Accrues for Statute of Limitation Purposes on Date Indemnitee Pays Judgment or Settlement

Kent Holland, J.D. ConstructionRisk, LLC Where a subcontractor failed to honor its contractual indemnification obligations to defend and indemnify a swimming pool installation general contractor against claims arising out of the subcontractor’s work, the general...

Additional Insured Does Not Lose Right to Coverage Based on Named Insured’s Failure to Provide Notice of Claim to Carrier

Where a named insured under the commercial general liability (CGL) policy failed to comply with the claim notice provisions of its policy, the insurance company denied coverage to additional insured entities despite the fact that those entities provided timely notice...

Subcontractor Owed Prime No Indemnity Obligation and Additional Insured Status Availed Nothing

Although a subcontractor damaged a sewer pipeline during the course of construction, it owed no indemnification duty to the prime contractor for expenses the prime incurred in repairing the pipe. The key reason given by the court was that a jury found that the sub was...

Additional Insureds Are Denied Coverage Where Carrier Rescinds Policy of Contractor That Had been Issued Based on Misrepresentations in the Policy Application Concerning the Nature of Contractor’s Work

When a tower crane collapsed in New York City, killing seven people, injuring dozens more, and damaging several buildings, the contractor that was operating the crane was denied coverage by it’s excess liability carrier for several distinct reasons.  The first reason...