"Of Course I'm Covered, I'm an Additional Insured!"

Nearly every general contractor knows by now that it needs to be an additional insured on its subcontractors' commercial general liability policies. But that may not assure coverage, particularly if the subcontractor is working on more than one of the contractor's projects. According to a recent article on the International Risk Management Institute's website, some insurers restrict coverage by designating a certain location or project as the "covered operations". In that case, the contractor's additional insured coverage is limited to that location only. It appears that a contractor must review the exact language of the additional insured endorsement on its subcontractors' policies to be certain of the coverage it thinks it is getting. We'll talk more about unanticipated pitfalls of additional insured coverage in upcoming posts, but to read more about this example, click here.