Why Additional Insured Coverage Fails in Construction Contracts

Video Transcription

Video Summary

The webinar explained why additional insured coverage often fails in construction contracts and how to prevent gaps. The presenter outlined the main types of insureds on a commercial general liability policy: named insureds, automatic insureds, and additional insureds. She then described three levels of additional insured coverage: limited, partial/intermediate, and broad form, noting that contract wording, policy endorsements, and state law all affect what coverage actually applies.<br /><br />Using several case studies, she showed common failures: coverage broader than the indemnity obligation, missing completed operations coverage, lack of primary and non-contributory status, and endorsements that did not trigger because the named insured was not performing work for every listed additional insured. She highlighted ISO forms such as CG 2010, CG 2037, CG 2038, and CG 2040, and stressed the importance of matching contract language to the policy form and edition date.<br /><br />Key advice included reviewing both indemnity and insurance requirements, requiring ongoing and completed operations coverage, making coverage primary and non-contributory when needed, checking state anti-indemnity laws, and obtaining certificates plus copies of endorsements. The session closed with practical checklists for both upstream parties and subcontractors.

Keywords

additional insured coverage

construction contracts

commercial general liability policy

insured types

policy endorsements

completed operations coverage

primary and non-contributory

ISO forms

anti-indemnity laws