Additional Insured Coverage in Construction Contracts and Interplay With Contractual Indemnification Clauses

Recording of a 90-minute CLE webinar with Q&A


Conducted on Tuesday, June 25, 2019

Recorded event now available

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Program Materials

This CLE webinar will provide attendees with a review of key issues in additional insured (AI) coverage, the interrelationship between contractual indemnification and AI coverage, and best practices to maximize AI coverage and for insurers to minimize exposure.

Description

AI coverage coverage is commonly used by parties in construction contracts to allocate and transfer risk. Parties seeking to be named as an AI desire the broadest form of coverage available and wish to avoid surprises once a claim is made against them.

Understanding the relationship between contractual indemnification, insurance policy requirements, and AI status is key to maximizing coverage and recovery. For example, insurers are usually required to defend and indemnify the additional insured under AI coverage, but the insurers’ express duty to defend may not exist under a contractual indemnification theory.

Listen as our panel of construction experts discusses the use of AI coverage and indemnification to effectively transfer risk in construction contracts and best practices for both contractors and insurers to maximize coverage and minimize exposure.

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Outline

  1. Overview of additional insured status
    1. Additional insured vs. additional named insured
    2. Endorsements vs. certificate of insurance
    3. Policy language and various additional insured forms
    4. Scope of coverage
    5. Priority of coverage
    6. Notice to insurer
  2. The interplay between contractual indemnity and additional insured coverage
    1. Contractual indemnification
    2. Contractual insurance requirements
    3. Additional insured coverage
  3. Best practices for insurers to minimize exposure for AI coverage and contractual indemnity

Benefits

The panel will review these and other key issues:

  • How can counsel ensure that contractually required AI coverage is satisfied by the named insured's policy?
  • Why is a possession of merely a certificate of insurance often inadequate protection for the party seeking AI status?
  • What are the challenges and pitfalls in drafting indemnification provisions for construction contracts?
  • How do the insurer's duties and obligations vary concerning AI coverage versus contractual indemnification?

Faculty

Bobotek, James
James P. Bobotek

Partner
Pillsbury Winthrop Shaw Pittman

Mr. Bobotek guides clients through all phases of development and construction of commercial properties, including...  |  Read More

Rollins, Lindsay
Lindsay Rollins

Atty
Hancock Daniel & Johnson

Ms. Rollins' practice focuses on insurance coverage litigation and counseling, as well as general commercial...  |  Read More

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