11 Oct 2016 One of the greatest challenges in drafting construction contracts is drafting insurance and indemnity provisions that effectively require contracting 22 Apr 2014 To obtain additional insured status, (1) the contract must have a provision requiring the counterparty to designate your client as an additional 6 Feb 2017 Architect/Engineer as an Additional Insured on an Insurance Policy Phoenix Insurance Co., the Owner engaged the Contractor to provide Insurance and indemnification clauses can be complex, and have significant 25 Aug 2015 However, other provisions of a contract or agreement, such as an insurance provision, can contain a requirement for the named insured to name One of the most commonly found clauses in any construction contract is the requirement of one party to name another party as an additional insured. It is found in The American Institute of Architects (AIA) documents, the Consensus DOCS and was inserted in almost all manuscript agreements I have reviewed in the past 30 years.
This provides protection for an insured who assumes the liability of a third party in a contract (i.e., hold harmless clauses and indemnity agreements). If the third party wants to be an additional insured, they want to be a party to your insured's policy. They need to be added by endorsement. Additional insureds and indemnitees are not the same. The contract requires you to add your new landlord, Buildings Inc., to your general liability policy as an additional insured. Buildings Inc. wants to make sure it will be covered under your policy if you accidentally harm someone or damage someone’s property while using your rental space, and Buildings Inc. is sued as a result. Generally, additional insured clauses are worded in broad terms, such as "any person or organization whom you (the named insured) are required to add as an additional insured on this policy under a written contract that person is only an additional insured with respect to liability arising out of 'your work' for that additional insured." The blanket contractual clause extends coverage to any contract pertaining to the named insured’s business under which they assume the tort liability of another, that is, an indemnity obligation. But insurance companies may remove coverage for contractual liability using the Contractual Liability Limitation Endorsement, Form CG 21 39.
Additionally, the additional insured, to the extent he is able, should exert all efforts to see that the additional insured coverage conforms to the insurance clause of the extrinsic contract. Failure to take these steps can lead to costly and unsuccessful coverage litigation. The contract shouldn't afford broader coverage to the additional insured than is provided by your policy. You should also check the limits on your policy to ensure they are adequate. If a claim is filed against you and an additional insured, any damages assessed against the additional insured may reduce the limits available to your firm. When the owner is not named as an additional insured but relies only on coverage under the contractual liability portion of the policy, the owner's defense costs are paid under the policy limits, meaning that the defense costs and indemnity paid by the insurer are capped at the policy's coverage limits. Additional Insured Sample Clauses Additional Insured . MSV, MSV Canada and each Financing Entity shall be named as an additional insured under Contractor’s third-party liability coverages, provided that, with respect to each Financing Entity, such Financing Entity has an insurable interest recognized by the applicable insurance underwriters. The additional insured endorsement should limit the coverage to the extent of the relationship between the named and additional insureds. Standard ISO endorsements do limit it to the applicable relationship, and care should be taken to do the same with additional insured endorsements that are manuscripted for special situations. The contract shouldn't afford broader coverage to the additional insured than is provided by your policy. You should also check the limits on your policy to ensure they are adequate. If a claim is filed against you and an additional insured, any damages assessed against the additional insured may reduce the limits available to your firm.
As prescribed in 528.310, insert the following clause: Government as Additional Insured (JAN 2016). (a) This clause supplements the requirements set forth in 20 May 2013 Insured contract coverage provides a means by which an indemnitor can use its the indemnitee as an additional insured on the indemnitor's policy. of the indemnification clause and making sure that the insured contract More importantly, ask to be listed as an additional insured on the They are elements or clauses within a contract or agreement that can work to your business's 4 Jan 2017 Crisis Management in the Gas Patch (Part 3): Additional Insured construction of the drilling contract's additional-insured provision is that BP's 27 Mar 2015 James S. Carter Many companies rely on indemnification and additional insured provisions in their contracts for protection against losses 28 May 2009 contracts is that one party must be added as an "additional insured" to Study 2: "Additional Insured" and "Contractual Indemnity" Provisions 1 Jul 2016 Why do we need an indemnity clause in our contract when we are added as an additional insured on the liability policy? Insurance is only one
11 Jul 2013 It effectively gives the additional insured/indemnitee direct coverage event the contractual indemnification provision in the parties' contract is