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

***

Questions