Product Update

"Protecting the Interests of Others" Updated in Commercial Property Insurance


This release to Commercial Property Insurance updates the discussion of "Protecting the Interests of Others: Additional Insureds, Loss Payees, Mortgagees, and Builders Risk Insureds."

Properly insuring all those who have an insurable interest in covered commercial property can be quite complex. The type of interest a party has in the property generally determines how that party is named under the policy. For example, insuring a mortgagee is quite different than insuring a loss payee. And while an entity may have a legitimate reason for wanting to be named as an additional insured under the named insured's liability policy, it may be entirely inappropriate for that entity to ask to be named as an additional insured under the commercial property policy. This updated discussion examines these different property interests and how to properly protect them under a commercial property policy. Furthermore, protecting the interests of all parties to a construction contract—the project owner, the general contractor, and all the subcontractors—in property under construction under a builders risk policy presents unique challenges. This discussion addresses these challenges as well and includes an up-to-date case law analysis of the specific problem of subrogation under a builders risk policy.