"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.