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Finally, a Helpful Guide to Additional Insured

With any written contract there are certain obligations that must be met by both parties, including work to be performed, timelines and requirements for a smooth working relationship.  This is true whether it is a contract for work being done or space being occupied. Most contracts today now have certain insurance requirements that must be met.  One of those usually requires the second party of the contract to include the first party as an additional insured. So what is an additional insured, and why does everyone want it?   Additional Insured is NOT a Co-Insured The first additional insured endorsement added to a General Liability policy was the CG 2010 1185 (Additional Insureds – Owners, Lessees or Contractors).  This form was intended only to add an additional insured to the policy for notification purposes in the event of a policy cancellation. However, due to the vague nature of the form, courts began awarding coverage to the additional insured under the named insured’s policy.  This effectively made the additional insured a co-insured or an additional named insured under the policy and covered the additional insured’s operations, as well.  This was not the intention of the endorsement.   Additional Insureds Do NOT Get (Much) Coverage The Insurance Services Office created several endorsements later that were intended to correct this issue.  Subsequent endorsements were designed to offer notification and limited legal representation to additional insureds. One endorsement that replaced the CG 2010 1185 was the CG 2037 0704 (Additional Insured – Owners, Lessees or Contractors – Completed Operations).  This endorsement allows for notification of the additional insured.  It also offers some legal...