{"id":898699,"date":"2021-04-28T09:47:31","date_gmt":"2021-04-28T15:47:31","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=898699"},"modified":"2021-04-28T09:47:37","modified_gmt":"2021-04-28T15:47:37","slug":"additional-insured-coverage-money-worth","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/additional-insured-coverage-money-worth\/","title":{"rendered":"Are You Getting Your Money\u2019s Worth in Additional Insured Coverage?"},"content":{"rendered":"\n

John P. Fischer | Barnes & Thornburg<\/a><\/p>\n\n\n\n

Many commercial contracts require that one of the parties be included as an \u201cadditional insured<\/a>\u201d on the general liability policies of its contracting partner (which is the \u201cnamed insured\u201d on those policies). General contractors typically require subcontractors to include them as additional insureds on the subcontractors\u2019 policies. Lessors often require the same from their lessees, and manufacturers from their suppliers.\u00a0<\/p>\n\n\n\n

From the perspective of the party seeking to be an additional insured, the reason is to shift some or all of the burden of providing coverage onto the other party\u2019s insurers for liabilities with some connection to that other party. This preserves the limits of the general contractor\u2019s, lessor\u2019s, or manufacturer\u2019s own policies for claims that have no connection to the other party.<\/p>\n\n\n\n

Not all additional insured coverage is created equal, however. Depending on the language of the additional insured endorsement, courts frequently interpret some kinds of additional insured coverage to apply more broadly than others. The following types of additional insured language, for example, have subtle (or not so subtle) differences in wording that could, depending on the jurisdiction and facts, result in different outcomes on the question of whether coverage is available for the additional insured. The key differences in the policy language are italicized:<\/p>\n\n\n\n