Product Update

Overcoming Disclaimers in Certificates of Insurance and Employee Leasing Updates in Contractual Risk Transfer


This release of Contractual Risk Transfer (CRT) contains an updated and expanded discussion of the methods for overcoming disclaimers in certificates of insurance as well as an updated discussion of state-specific treatment regarding determination of the employer in an employee leasing situation.

Disclaimer language in certificates of insurance typically results in two consequences. First, a standard certificate of insurance with disclaimers will not be interpreted as being an operative legal document that can make substantive changes to the underlying policy. Second, the certificate holder is no longer entitled to rely on information stated in the certificate of insurance with disclaimers for purposes of an equitable estoppel claim. That said, three methods exist to try to overcome standard disclaimers printed on a certificate of insurance, but it is important to note that overcoming standard disclaimer language is difficult to do. This CRT release contains an updated and expanded discussion of the methods that parties can try to use to overcome disclaimers in certificates of insurance, including a discussion of a Washington Supreme Court case in which the court held that a certificate of insurance's disclaimers were not effective and the certificate holder was an additional insured under a contractor's general liability policy.

Employee leasing exposure has grown since a large number of employers have moved away from their traditional role as employer, opting instead to lease their employees from other entities whose primary business is providing workers to other businesses. Because of the widely varied approaches taken by the states toward employee leasing, it is important that any organization contemplating the implementation of an employee leasing arrangement be aware of the state-specific treatment regarding determination of the employer in an employee leasing situation. This CRT release contains an updated discussion of state-specific information regarding the determination of the employer and the application of exclusive remedy doctrine in employee leasing arrangements.