Types of Additional Insureds

By Carter McAuley, Administrative Assistant

Occasionally an insured may require a specialized Additional Insured Endorsement for a contract or job beyond the ISO forms CG 20 10, CG 20 37, or the carrier specific Additional Insured endorsements. There are several different Additional Insured Endorsements that are available to meet the needs of an insured.

Most blanket Additional Insured endorsements include the wording “where required by written contract;” however, this wording may fail to address additional insured requirements where the insured does not have a direct contract with an entity, such as an architect, engineer, or surveyor. In this instance, a form such as the ISO form CG 2032, or a carrier-specific equivalent may be used. This endorsement grants additional insured status even though the architect is not directly engaged by the insured. The endorsement does not provide professional liability to the architect however. The endorsement only provides coverage for injury or property damage caused by the insured’s acts or omissions in the performance of the insured’s ongoing operations.

Another situation that may require a different additional insured endorsement is when an insured is leasing equipment, such as heavy construction machinery. In this instance, the lessor of the equipment may want to be indemnified for liability that results from the insured’s maintenance or operation of that equipment. The ISO endorsement that addresses this exposure is CG 20 28, Additional Insured – Lessor of Leased Equipment. It is designed to protect the lessor for liability occurring during the lease period.

The insured may be leasing their building from a landlord or property manager. In this situation, most landlords require the Additional Insured – Managers or Lessors of Premises (ISO Form CG 20 11). This endorsement provides insured status to the insured’s landlord for liability arising out of the ownership, maintenance, or use of the part of the premises rented to the insured during the lease duration. The endorsement does exclude structural alterations, construction, or demolition performed on behalf of the landlord. With this endorsement, it is important to specifically list the premises being leased as failure to do so can result in a denial of coverage.

Government entities may require a specialized additional insured endorsement. The endorsement (ISO CG 20 12) applies to work performed by the insured or on the insured’s behalf for which the government entity has issued a permit. The government entity can be the state, a city or municipality, or a government agency. This does not apply to work performed for the federal, state, or municipal government.

Reviewing Additional Insured requirements and adding the correct forms are crucial to ensuring the insured is in compliance with their contracts. Understanding the coverages, limitations, and exclusions of these specialized Additional Insured endorsements is vital to creating a comprehensive insurance policy for your insured.

Contact us today for more information on Additional Insured endorsements or to discuss a specific account.