The ‘Additional Insured’ Pitfall

Filed in Legal by on June 20, 2014 0 Comments

Suppose your company becomes involved in a construction defect suit arising from mistakes that turn out to be your subcontractor’s fault and you are listed as an Additional Insured on your sub’s comprehensive general liability (CGL) policy.  Are you covered?

The U.S. Court of Appeals for the Fifth Circuit said an insurer had no duty to defend a contractor named as an additional insured in a subcontractor’s CGL policy in a post-completion breach of contract suit for construction defects.  The court’s analysis centered on the interpretation of “ongoing operations” and “completed operations.”

Learn how the decision may affect your business and your insurance purchasing decisions in this story from the NAHB Office of the General Counsel.

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