Contrary to what some may believe, the designated construction project general aggregate limit endorsement (CG 25 03) does not apply to the policy’s products-completed operations aggregate. A broker reached out to me last week seeking my opinion on this to resolve an internal disagreement she was having with some of her colleagues. A designated construction […]
General Liability
Not Reviewing An Entire Policy Can Result in the Unintended Forfeit of Important Coverages
The one constant assertion insurance coverage enthusiasts consistently declare on this platform and in general, is the need to read the entire insurance policy (or as some in the industry acronymized to RTFP). Examples abound to support this assertion and although anymore may be superfluous, one such example arose for me this morning while reviewing […]
The Definition of Property Damage and the Inclusion of Joint Loss Clauses
Most people by now are familiar with the business interruption insurance coverage disputes raging in courts since the onset and spread of Covid-19. With the first few state supreme courts weighing in on this dispute in the last week and following the overwhelming majority of lower court decisions that no coverage applies, the trend seems […]
Consider a Margin Clause for an Auditable Policy
A margin clause is a provision occasionally found on property policies giving the insured flexibility in the amount of coverage assigned to an insured building or schedule of buildings. It gives the insured additional protection in case the values submitted to the carrier prove to be inadequate at the time of a loss. If the […]
The Various Forms of the Subsidence Exclusion
I have posted previously about avoiding a subsidence or land movement exclusion on general liability policies, but where that is not feasible, negotiating the most favorable wording of the exclusion on behalf of the insured would be the next best option. There are various versions of the exclusion and the differences between them can be […]
Focus on the Definition of Professional Services
I have read a number of articles this week summarizing recent litigation related to coverage disputes with policies referencing E & O coverage. One case involved a general liability policy with multiple endorsements addressing E & O coverage and the court found in favor of the insured due to ambiguity arising from conflicting endorsements. Another […]
The Applicability of a Subsidence Exclusion
In a previous tip posted approximately two years ago, I warned of the commonly seen subsidence exclusion in general liability policies and recommended removing it whenever possible. A recent unpublished ruling from the Ninth Circuit demonstrates the importance of having this exclusion removed, particularly for insureds whose business operations and work product may be impacted […]
Understanding Owner’s Interest Liability Insurance
One of the insurance policies I find to be misunderstood by many, including industry professionals, is an owner’s interest (OI) general liability policy. Many incorrectly believe that an owner should rely on a general contractor or construction manager’s liability insurance for a construction project without the need for the owner’s own liability policy. Some will […]