CGL Additional Insureds

What is the wavier of subrogation?

Insurance carrier pays losses to the insured, the insurance company can pursue reimbursement from the third party

1. Does not limit recovery from third party or insurance company

2. If the insurance party find the third party not in the wrong, payment is not required to be given back

When can the right to subrogation be waived?

1. Waived before the loss occurs

2. Has to be in writting

By endorsement or contract

What are the three types of insureds in the CGL Policy?

1. Named Insured: named on policy

2. Automatic Insured: relationship to named insured

3. Non Auto / Additional Insureds: named in the additional insured endorsement added by named insured

Why would a person or organization request additional insured status?

1. May assure greater safety in risk transfer

   1. In addition to hold harmless / greater safety in settling a claim

2. Grands direct rights under named insureds CGL Policy

   1. includes providing third party with defense

3. Protects additional insured from subrogation

4. Higher total limits

5. Reduce direct insurance cost

Why would someone be willing to add an additional insured?

1. Close Relationship

2. Contractual relationship that requires Additional Insured Status

What are the problems for the named insured for adding an additional insured?

1. Diminution of Policy Limits

   1. Further stretched limits

2. Unintended Coverage Provided

   1. No broader coverage

3. Defense Conflicts

   1. Can’t blame additional insured

4. Compliance Problems

   1. Numerous additional endorsements choose from

What are the problems for the additional insured to be added as an additional insured?

1. Loss of Defensive Control

   1. Relying on another persons insurance company for defense

2. Increased probability of disputes over coverage

3. Limited Coverage under Current Forms

4. Depends on someone else’s insurance

When will the additional insured endorsement limit coverage for the additional insured?

For bodily injury or property damage caused by

1. soley by the named insured

2. combination of negligence by named and additional insured

What happens when a state does not use Hold Harmless Agreements and Indemnification Contracts?

Additional Insured may be allowed more coverage than contract, or a state might not offer more coverage

What are the common additional insured endorsements?

1. Additional Insureds - Owners, Leases, Contractors - Scheduled Person or Organization

2. Additional Insureds - Owners, Leases, Contractors - Completed Operations

3. Additional Insureds - Managers or Lessors of Premises

4. Additional Insured - Designated Person or Organization

5. Additional Insured - Lessor of Leased Equipment

6. Additional Insured - Owners, Leases, Contractors - Automatic Status when Required in Construction Agreement with You

7. Additional Insured - Owners, Leases, Contractors - Automatic Status for Other parties when required in written construction aggreement

In depth

1. Additional Insureds - Owners, Leases, Contractors - Scheduled Person or Organization

   1. additional insured ongoing operations (no written contract)

2. Additional Insureds - Owners, Leases, Contractors - Completed Operations

   1. when work has been done (no written contract)

3. Additional Insureds - Managers or Lessors of Premises

   1. add a landlord to a tenant policy (written contract)

4. Additional Insured - Designated Person or Organization

   1. for when you do not want to name an additional location (no written)

5. Additional Insured - Lessor of Leased Equipment

   1. leased tools and equipment to add owner to renters CGL

6. Additional Insured - Owners, Leases, Contractors - Automatic Status when Required in Construction Agreement with You

   1. add AI as ongoing AI as class (written)

7. Additional Insured - Owners, Leases, Contractors - Automatic Status for Other parties when required in written construction aggreement

   1. add AI as ongoing class plus those outside of contract

last two additional additional insured (as unnamed)