Product Update

Additional Insured Status for Third-Party-Over Claims Discussed in Contractual Risk Transfer


This release of Contractual Risk Transfer updates the discussion of commercial general liability (CGL) additional insured endorsements.

An ongoing topic of dispute since a 2004 revision of standard additional insured endorsements has been coverage for additional insureds sued by an employee of the named insured. In such litigation, where the named insured is protected from tort claims by the applicable workers compensation statute, no allegation of fault is typically made against the named insured employer, and the coverage trigger of the additional insured endorsement—injury "caused, in whole or in part" by the named insured—is not unambiguously activated. Appellate courts are divided as to the applicability of coverage in these situations. Rhode Island recently joined the list of jurisdictions where additional insureds will not have coverage for third-party-over suits brought by the named insured's employee. Read a discussion of the ruling by the state's Supreme Court.

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