Product Update

Additional Insured-Related Endorsements Discussed in Contractual Risk Transfer


In this Contractual Risk Transfer release, we take note of some new endorsements that, while not technically additional insured endorsements, do modify insured status under the CGL policy or have an effect on the coverage otherwise provided to additional insureds. One of these newly introduced endorsements—Exclusion—Designated Operations Covered by a Controlled (Wrap-Up) Insurance Program—Limited Exception for Additional Insureds (CG 40 07)—can be used to impose the wrap-up exclusion usually added to a contractor's or subcontractor's CGL policy when the named insured is enrolled in a controlled insurance program but with an exception that preserves coverage for unenrolled additional insureds. The other new endorsement—Automatic Insured Status for Newly Acquired or Formed Limited Liability Companies (CG 24 54)—provides underwriters with the option of extending the CGL policy's automatic insured status to newly acquired or formed limited liability companies (LLCs) and removing the "Who Is an Insured" language that precludes insured status for anyone with respect to the operation of an LLC not listed as a named insured in the policy declarations.