Additional Insureds Tried and Tested

1
Additional InsuredsTried and Tested

• James Shay, Account Executive
• American Contractors Insurance Group, Inc.
• January 28, 2005

2
Additional Insured Goals for General Contractor

• Deliver the product to the Owner
• Primary risk transfer mechanism
• Quick resolution of defense/indemnity obligations

3
Risk Transfer Illustration
4
Risk Financing Illustration
5
Challenges

• Managing the review process
• Interpreting changing additional insured
  endorsements and manuscript additional insured
  endorsement forms

6
CG 20 10 11 85 - Liability Arising out of Your
Work

• One hurdle - Your Work
• No trigger of negligence
• Includes completed operations
• Broadest form around was widely used and is
  still quoted as a requirement

7
CG 20 10 10 93 Liability Arising out of Your
Ongoing Operations

• One hurdle - Your Ongoing Operations
• No trigger of negligence
• No completed operations
• Widely provided

8
CG 20 10 10 01 / CG 20 37 10 01

• Forms often used together
• Provides ongoing operations on 20 10
• Provides completed operations on the 20 37

9
CG 20 10 07 04 / CG 20 37 07 04

• Similar to 10 01 forms above for grant of
  coverage
• Provides ongoing operations on 20 10
• Provides completed operations on the 20 37
• Requires showing that liability was caused by
  the subcontractor

10
What Now?

• Training for reviewers
• Understand coverage implications
• General Contractors to review/update
  subcontractor insurance requirements
• Subcontractor prequalification
• Blanket endorsements

11
What Now? Continued

• Audit assistance
• Proper maintenance of old certificates/endorsement
  s
• Clarify scopes to be flexible with insurance
  requirements
• Negotiate down Owner insurance requirements
• Ensure General Contractor has CIP option