Navigating the Minefield of Contractual Indemnity Coverage
and Additional Insured Issues
RIMS 2008 Annual Conference & Exhibition May 30, 2008
San Diego, CA
Kevin R. KingTurner Construction
Company
Paul J. Van OsselaerVan Osselaer, Cronin &
Buchanan, L.L.P.
Tracy Alan SaxeSaxe Doernberger &
Vita, P.C.
Texas High School Example
Risk Transfer Vehicles
Additional
Insured
Coverage
3rd Party Liability Insurance
CGL
Professional
Pollution
1st Party Insurance
Indemnity
Property
Builders Risk
Contractual Rights
New York Synagogue Example
Hotly Contested Issues
Allocation
Priority of Triggered Coverages
“Other Insurance”
Waiver of Subrogation
Notice
Place Your Bet!
Black: You break even!
Red/Green: You lose!
Additional Insured (AI) Coverage
Advantages/Disadvantages
Interpretation
Evolution of AI Endorsements
Completed/Ongoing Operations
Certificates of Insurance
Landlord/Tenant Example
Liability
Not Covered Covered
Indemnity
Contractual Indemnity – What is Covered?
Crane Collapse Example
Evolution of the AI Endorsement
CG 20 10 11 85“arising out of”
CG 20 10 10 93Limits coverage
to “ongoing operations”
CG 20 10 10 01Excludes coverage
for completed operations
CG 20 37 10 01Reinstates completed operations coverage
CG 20 10 07 04Replaces
“arising out of” with “caused in
whole or in part”;Excludes completed operations
1985 200420011993
CG 20 09 11 85Specifically excludescompleted operations
CG 20 10 10 01Excludes coverage
for completed operations
CG 20 37 10 01Reinstates completed operations coverage
CG 20 10 10 93Limits coverage to
“ongoing operations”
CG 20 09 11 85Specifically excludescompleted operations
CG 20 10 11 85“arising out of”
CG 20 10 07 04Replaces “arising
out of” with “caused in whole
or in part”;Excludes completed operations
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Questions
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