Presented by: Judy Durst Director of Education New Hampshire Assoc. of Insurance Agents

Transcription

1 Presented by: Judy Durst Director of Education New Hampshire Assoc. of Insurance Agents

2 Purpose of the webinar

3 Numbering System - ISO

4 The first two digits indicate the line of insurance such as CG for CGL. The next two digits designate the specific category our next slide will give you a list The next two digits are the form/end t number The last four digits are the edition date of the form.

5

6 Before we start reviewing the specific endorsements, let s take a look at what an additional insured is.

7 IRMI defines an additional insured as: A person or organization not automatically included as an insured under an insurance policy of another but for whom the named insured desires or is required to provide a certain degree of protection under its insurance policy. 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.g., wanting to protect church members performing services for the insured church) or to comply with a contractual agreement requiring the named insured to do so (e.g., project owners, customers, or owners of property leased by the named insured).

8 Additional insureds are normally added to an insured s policy via an endorsement. Let s take a look at the endorsements that you might use to add an additional insured.

9 Before we look at the endorsements in detail, let me mention that with the changes to many of these forms, the following was added: The insurance afforded to the additional insured describe above ONLY APPLIES TO THE EXTENT PERMITTED BY LAW.

10 The other additional verbiage that was added includes: The insurance afforded to such additional insured described above WILL NOT BE BROADER THAN THAT WHICH YOU ARE REQUIRED BY THE CONTRACT OR AGREEMENT TO PROVIDE FOR SUCH ADDITIONAL INSURED.

11 CG Primary and Non- Contributory Other Insurance Condition This is a new endorsement that states that coverage for additional insureds is on a primary and non-contributory basis by only when contractually required. The noncontributory agreement applies only to policies where the additional insured is a named insured.

12 CG Additional Insured Club Members This endorsement is used to add members of a club as insureds but only with respect to their liability for the named insured s activities or for activities they engage in on the named insured s behalf.

13 CG Additional Insured Concessionaires Trading Under Your Name This endorsement adds any concessionaire on the endorsement schedule as an additional insured but only with respect to its liability as a concessionaire that trades under the named insured s name.

14 CG Additional Insured Condominium Unit Owners This endorsement adds each individual unit owner of the insured condominium as an insured. This is limited to liability that arises out of ownership, maintenance, or repair of the premises common areas.

15 CG Additional Insured Controlling Interest Provides AI status to the party named in the endorsement. This is only for liability that arises out of its financial control of the named insured or for premises it owns, maintains, or controls that the named insured leases or occupies.

16 CG Additional Insured Engineers, Architects, or Surveyors This endorsement adds any engineer, architect, or surveyor that the named insured hires as an additional insured. this is limited to only losses caused by the named insured s acts or omissions or acts or omissions of parties that act on its behalf related to its premises or performing continuing operations.

17 CG Additional Insured Engineers, Architects or Surveyors continued. This endorsement does not include professional liability coverage or allegations of negligence in hiring, training, or monitoring those who provide professional services.

18 CG Additional Insured Users of Golfmobiles This endorsement includes any party that uses or is legally responsible for using golfmobiles for liability that arises from using them as an additional insured. The endorsement does define the golfmobiles.

19 Now let the fun begin. CG Additional Insured Owners, Lessees, or Contractors Scheduled Person or Organization This endorsement adds the person or entity on the endorsement schedule as an additional insured. This is limited to losses caused by the named insured s acts or omissions or acts or omissions of others that act on its behalf in performing continuing operations at designated locations.

20 The CG does not provide completed operations coverage for the additional insured. You must add CG to provide that.

21 Why is everyone always asking for the CG form? The number one reason is because back in the edition of the form, completed operations was included. The carriers don t want to provide that version for two reasons

22 Reasons why the underwriter does not use the edition: 1) They have already accepted the use a later version of the form. They can t flip back and forth 2) They don t want to provide completed operations coverage for additional insureds want the CG endorsement & a charge

23 CG Additional Insured Managers or Lessors of Premises This endorsement adds the person or entity on the endorsement as an additional insured. Only applies with respect to losses due to ownership, maintenance or use of the part of the premises that is listed on the endorsement schedule that the named insured leases.

24 CG Additional Insured State or Governmental Agency or Subdivision or Political Subdivision Permits or Authorizations This endorsement schedules the state, governmental agency etc. as an additional insured but only with respect to operations the named insured performs or that others perform on its behalf for which the agency or subdivision issued a permit. see next slide for more.

25 CG continued Coverage does not apply to injury or damage that arises out of operations performs for the state or municipality or that the products/completed operations hazard includes.

26 CG Additional Insured State or Governmental Agency or Subdivision or Political Subdivision Permits or Authorizations Relating to Premises Similar to the CG except it limits the additional insured status to a permit issued in conjunction with premises the named insured owns, rents or controls.

27 CG Additional Insured Users of Teams, Draft or Saddle Animals This endorsement adds any party that uses or is legally responsible for using draft or saddle animals as an insured. The use must be by the named insured or a party that has the named insured s permission. This includes vehicles used with them.

28 CG Additional Insured- Vendors This endorsement provides products liability coverage for any entity listed on the endorsement schedule that sells or distributes the named insured s products. This endorsement adds 8 exclusions see next slides

29 CG exclusions Damages for BI or PD the vendor is responsible for because they assumed liability in a contract. For warranties vendor made that named insured did not authorize Intentional physical or chemical changes the vendor made to product Repackaging If vendor agreed to inspect, adjust, test or service a product in the usual course of its business & failed to do so When vendor demonstrated, installed, serviced, or repaired, unless it performs these operations in conjunction with selling the product while at its premises Products the named insured sold to the vendor for vendor s own use. BI or PD due to vendor s sole negligence

30 CG Additional Insured Townhouse Associations This endorsement adds each individual townhouse owner as an insured. This is only with respects to his or her liability as a member of the townhouse association. It is not for any liability that arises out of ownership, maintenance, use or repair of real property titled to an individual owner.

31 CG Additional Insured Mortgagee, Assignee, or Receiver This endorsement adds the party on the endorsement schedule as an additional insured. This is only with respect to that party s liability as a mortgagee, assignee, or receiver that arises out of the named insured s ownership, maintenance, or use of the designated premises.

32 CG Additional Insured Charitable Institutions This endorsement adds the named insured s members as insureds. However, this is only with respect to their liability for the named insured s activities or activities they perform on the named insured s behalf. This includes trustees or members of the named insured s board of governors but only while they act on the named insured s behalf within the scope of their duties.

33 CG Additional Insured Church Members and Officers This endorsement adds church members, trustees, officials, members of its board of governors, and clergy as insureds. It does not provide additional insured status to regular attenders who are not members of the church.

34 CG Additional Insured Executors, Administrators, Trustees, or Beneficiaries This endorsement adds any executor, administrator, trustee or beneficiary of the named insured s estate or living trust as an additional insured. However, this is only while they act within the scope of their duties as such.

35 CG Additional Insured Owners or Other Interests from Whom Land Has Been Leased This endorsement adds the party on the endorsement schedule as an additional insured. This is only with respect to liability that arises out of ownership, maintenance, or use of the part of the designated premises or land that the named insured leases.

36 CG Additional Insured Elective or Appointive Executive Officers of Public Corporations This endorsement adds any elective or appointive officer or member of any of the named insured s boards or commissions as an insured.

37 CG Additional Insured Designated Person or Organization This endorsement adds the party on the endorsement schedule as an additional insured. This is only for losses caused by the named insured s acts or omissions or acts or omissions of other that act on its behalf within the scope of their duties. This is the endorsement you would use when another specific endorsement is available.

38 CG Additional Insured Coowner of Insured Premises This endorsement adds the party on the endorsement schedule as an additional insured but only for its liability as a co-owner of the premises on the endorsement schedule.

39 CG Additional Insured Lessor of Leased Equipment This endorsement adds the party on the endorsement schedule as an additional insured but only for losses caused by the named insured s maintenance, operation, or use of the equipment it leases.

40 CG Additional Insured Grantor of Franchise This endorsement adds the party on the endorsement schedule as an additional insured but only with respect to its liability because it granted a franchise to the named insured.

41 CG Oil or Gas Operations Non-operating, Working Interests This endorsement adds owners, co-owners, parties of a joint venture, mining partners, and limited liability companies with non-operating working interests in oil or gas leases that the named insured operates as additional insureds. It is only with respect to liability due to such non-operating working interests.

42 CG Additional Insured Engineers, Architects, or Surveyors This endorsement is similar to the CG except that this endorsement can only be used with an OCP versus the CGL Occurrence form.

43 CG Additional Insured Engineers, Architects or Surveyors Not Engaged by the Named Insured This is similar to the CG as well except that it applies when the named insured did not hire the Engineer, Architect or Surveyor and they must give them additional insured status due to a contract.

44 CG Additional Insured Owners, Lessees, or Contractors Automatic Status When Required in Construction Agreement with You This endorsement provides automatic additional insured status to any party for whom the named insured performs operations. Sounds good, huh? Warning, warning, Danger Will Robinson take a look at the next slide

45 CG continued The additional insured status is provided only when there is a contractual requirement for that party to be an additional insured on the named insured s coverage form. It is also only with respect to losses caused by the named insured s acts or omissions or acts or omissions of parties that act on its behalf in performing continuing operations for the additional insured.

46 CG Additional Insured Lessor of Leased Equipment Automatic Status When Required in Lease Agreement with You This is another endorsement that will provide automatic additional insured status to any party from whom the named insured leases equipment. Once again there is a catch see the next slide

47 CG continued This endorsement is only providing additional insured status when there is a contractual requirement for that party to be an additional insured on the named insured s coverage form. It is also only with respect to liability for bodily injury, property damage, or personal and advertising injury caused by the named insured s maintenance, operation, or use of equipment it leases from that party.

48 CG Additional Insured Grantor of Licenses Automatic Status when Required by Licensor This endorsement provides automatic additional insured status to any party that grants a license to the named insured but it is only when there is a contractual requirement for that party to be an additional insured on the named insured s coverage form. It is also only with respects to its liability because it granted A license to the named insured.

49 CG Additional Insured Grantor of Licenses This endorsement will do the same as the previous endorsement except that each grantor of a license must be listed and there is no automatic status. This will be used when there is no contractual requirement for the additional insured status.

50 CG Additional Insured Owners, Lessees, or Contractors Completed Operations This endorsement works with the other additional insured endorsements (CG & CG 20 33) to provide additional insured status only for losses caused by the named insured s work at the designated location included in the products/completed operations hazard that the listed party performed.

51 CG Additional Insured Owners, Lessees, or Contractors Automatic Status for Others When Required in Written Construction Agreement This endorsement is identical to CG except that it adds an additional group as automatic additional insureds. This group is any party the named insured is required to make additional insureds based on a construction contract with another party. (continues on next slide)

52 CG continued The named insured is not required to have a contract with the others. However, when the construction contract expires, all automatic additional insureds that were part of that contract are no longer additional insureds. Be very careful using this one.

53 Why does everyone want to be listed as an additional insured? Well, it has its advantages such as: No question of enforceability as is often a problem with an indemnification agreement. The additional insured has direct rights to defense carrier must provide them with a separate defense & pay for it!

54 More advantages to being named as an additional insured The additional insured may have broader coverage than the named insured under certain circumstances such as when restrictive conditions apply to the named insured that wouldn t apply to the additional insured

55 And more advantages The additional insured obtains personal injury coverage that is usually excluded by a contractual assumption Depending on the jurisdiction, the additional insured may be provided coverage for its sole negligence many states restrict by law which is reflected in the additional insured wording.

56 What are the disadvantages to adding additional insureds? Since there are over 30 ISO additional insured forms and seemingly limitless company-specific additional insured forms, just saying additional insured means almost nothing.

57 More disadvantages Additional insured endorsements provide only limited amounts of coverage and should be read carefully to determine the limitations Unless requested otherwise, the additional insured status does not extend to officers, directors, employees of the additional insured

58 And still more disadvantages Additional insured status could trigger the other insurance clause Limits may be eroded or exhausted by claims An additional insured usually receives a certificate of insurance as proof of coverage. This is an unenforceable document.

59 One more thing. Is there a difference between additional insured and additional named insured? Yes there is! When you add an additional named insured it is like adding another named insured. They have all the rights and responsibilities of the policy. Not a good idea. Additional named insured status is something to be avoided unless absolutely necessary.

60 Questions? Let s take another poll.

61 Housekeeping items before we end Complete & send roster for CE Fax # judy@nhaia.com

62 Thank you for joining us and for your continued support of NHAIA. Please call or me with any questions.

63 PRIMARY CG & NON-CONTRIBUTORY OTHER INSURANCE CONDITION CG ADDITIONAL INSURED - CLUB MEMBERS CG ADDITIONAL INSURED - CONCESSIONAIRES TRADING UNDER YOUR NAME CG ADDITIONAL INSURED - CONDOMINIUM UNIT OWNERS CG ADDITIONAL INSURED - CONTROLLING INTEREST CG ADDITIONAL INSURED - ENGINEERS, ARCHITECTS, OR SURVEYORS CG ADDITIONAL INSURED - USERS OF GOLFMOBILES CG ADDITIONAL INSURED - OWNERS, LESSEES OR CONTRACTORS - SCHEDULED PERSON OR ORGANIZATION CG ADDITIONAL INSURED - MANAGERS OR LESSORS OF PREMISES CG ADDITIONAL INSURED - STATE OR GOVERNMENTAL AGENCY OR SUBDIVISION OR POLITICAL SUBDIVISION - PERMITS OR AUTHORIZATIONS CG ADDITIONAL INSURED - STATE OR GOVERNMENTAL AGENCY OR SUBDIVISION OR POLITICAL SUBDIVISION - PERMITS OR AUTHORIZATIONS RELATING TO PREMISES

64 ADDITIONAL CG INSURED - USERS OF TEAMS, DRAFT OR SADDLE ANIMALS CG ADDITIONAL INSURED - VENDORS CG ADDITIONAL INSURED - TOWNHOUSE ASSOCIATIONS CG ADDITIONAL INSURED - MORTGAGEE, ASSIGNEE, OR RECEIVER CG ADDITIONAL INSURED - CHARITABLE INSTITUTIONS CG ADDITIONAL INSURED - CHURCH MEMBERS AND OFFICERS CG ADDITIONAL INSURED - EXECUTORS, ADMINISTRATORS, TRUSTEES OR BENEFICIARIES CG ADDITIONAL INSURED - OWNERS OR OTHER INTERESTS FROM WHOM LAND HAS BEEN LEASED CG ADDITIONAL INSURED - ELECTIVE OR APPOINTIVE EXECUTIVE OFFICERS OF PUBLIC CORPORATIONS CG ADDITIONAL INSURED - DESIGNATED PERSON OR ORGANIZATION CG ADDITIONAL INSURED - CO-OWNER OF INSURED PREMISES

65 ADDITIONAL CG INSURED - LESSOR OF LEASED EQUIPMENT CG ADDITIONAL INSURED - GRANTOR OF FRANCHISE CG OIL OR GAS OPERATIONS - NONOPERATING, WORKING INTERESTS CG ADDITIONAL INSURED - ENGINEERS, ARCHITECTS OR SURVEYORS CG ADDITIONAL INSURED - ENGINEERS, ARCHITECTS OR SURVEYORS NOT ENGAGED BY THE NAMED INSURED CG ADDITIONAL INSURED - OWNERS, LESSEES OR CONTRACTORS - AUTOMATIC STATUS WHEN REQUIRED IN CONSTRUCTION AGREEMENT WITH YOU CG ADDITIONAL INSURED - LESSOR OF LEASED EQUIPMENT - AUTOMATIC STATUS WHEN REQUIRED IN LEASE AGREEMENT WITH YOU CG ADDITIONAL INSURED - GRANTOR OF LICENSES - AUTOMATIC STATUS WHEN REQUIRED BY LICENSOR CG ADDITIONAL INSURED - GRANTOR OF LICENSES CG ADDITIONAL INSURED - OWNERS, LESSEES OR CONTRACTORS - COMPLETED OPERATIONS

66 CG ADDITIONAL INSURED OWNERS, LESSEES, OR CONTRACTORS AUTOMATIC STATUS FOR OTHERS WHEN REQUIRED IN WRITTEN CONSTRUCTION AGREEMENT