{"id":899648,"date":"2022-03-01T16:43:15","date_gmt":"2022-03-01T23:43:15","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=899648"},"modified":"2022-03-02T14:38:32","modified_gmt":"2022-03-02T21:38:32","slug":"additional-insured-as-owners","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/additional-insured-as-owners\/","title":{"rendered":"Owners as Additional Insured in Construction Contracts"},"content":{"rendered":"\n<p>Anastas Shkurti | <a href=\"https:\/\/www.lexology.com\/library\/detail.aspx?g=5ef5da73-9f0e-49ef-a2ca-f1542f4e1aba&amp;utm_source=Lexology+Daily+Newsfeed&amp;utm_medium=HTML+email+-+Body+-+General+section&amp;utm_campaign=Lexology+subscriber+daily+feed&amp;utm_content=Lexology+Daily+Newsfeed+2022-02-22&amp;utm_term=\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Robbins DiMonte Ltd<\/a><\/p>\n\n\n\n<p>An owner who embarks on a construction project should always request <a href=\"https:\/\/www.myconstructionexpert.com\/blog\/additional-insured-coverage-changing-fact\/\" target=\"_blank\" rel=\"noreferrer noopener\">additional insured<\/a> status on the general contractor\u2019s and subcontractors\u2019 <a href=\"https:\/\/www.myconstructionexpert.com\/blog\/cgl-policies-professional-liabilities-exclusion\/\" target=\"_blank\" rel=\"noreferrer noopener\">commercial general liability (CGL) policies<\/a>. It is not enough for the owner to verify that the contractor is licensed and has insurance. As an additional insured (or AI), the owner would be listed in the schedule of an AI endorsement to be included as an \u201cinsured\u201d under the prime policy. Such endorsement is an amendment to the insurance policy to which it is attached. The owner\u2019s goal is to be covered by the liability policy of the other party independently of the indemnity provisions of the construction contract.<\/p>\n\n\n\n<p>Being an AI has several advantages. This status provides a \u2018backup strategy\u2019 or \u2018safety net\u2019 to the owner to the extent of the risks covered in the CGL. This becomes important if the indemnification provisions of the the main contract are held unenforceable.<\/p>\n\n\n\n<p>The Owner also has direct policy rights to defense within the CGL without having to depend upon indemnities and contractual liability.<\/p>\n\n\n\n<p>The owner may also be entitled to the excess liability or umbrella coverage of the general contractor because such policies frequently cover all insureds also covered under the primary liability policy. The owner must ask for a copy of the AI endorsement for review and approval. There are numerous different forms of AI endorsements widely used by insurance providers. These endorsements, in addition to granting coverage also restricts the coverage. Common coverage limitations are: (a) exclusions of property damage or bodily injury resulting from the sole negligence of the owner; (b) erosion of limits, such as when the general aggregate limit of a CGL policy may be exhausted if a loss is paid on an AI claim; (c) restrictions of coverage to the scope required by the construction contract; and (d) restriction of coverage to the lesser of the amount of insurance required under the contract or the applicable limits of the policy. As a result, the owner should negotiate with the contractor to match AI coverage to indemnification obligation of the construction contract. Also, these endorsements do not typically include the owner\u2019s employees, agents, directors, or officers, even though the construction contract may ask for such indemnity.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><strong>When one of your cases is in need of a construction expert, estimates, insurance appraisal or umpire services in defect or insurance disputes &#8211; please call Advise &amp; Consult, Inc. at 888.684.8305, or email <a href=\"mailto:experts@adviseandconsult.net\" target=\"_blank\" rel=\"noreferrer noopener\">experts@adviseandconsult.net<\/a>.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Anastas Shkurti | Robbins DiMonte Ltd An owner who embarks on a construction project should always request additional insured status on the general contractor\u2019s and subcontractors\u2019 commercial general liability (CGL) policies. It is not enough for the owner to verify that the contractor is licensed and has insurance. As an additional insured (or AI), the&hellip; <a class=\"more-link\" href=\"https:\/\/www.myconstructionexpert.com\/blog\/additional-insured-as-owners\/\">Continue reading <span class=\"screen-reader-text\">Owners as Additional Insured in Construction Contracts<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[10791,9,30,10721],"tags":[382,9895,4739,224],"class_list":["post-899648","post","type-post","status-publish","format-standard","hentry","category-commercial-general-liability-policy","category-construction-contracts","category-general-liability-policy","category-insurance","tag-additional-insured","tag-advise-consult","tag-commercial-general-liability-policy","tag-construction-contract","entry"],"jetpack_publicize_connections":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Owners as Additional Insured in Construction Contracts - Advise &amp; 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