In today's world, subcontractors often times name their general contractor's as additional insureds (AI). In many other trades, parties can name others as AI's. However, if you have been promised to be named as an AI or have promised to name someone else as an AI, you must make sure that the AI endorsement is provided. A mere promise of insurance is not enough. The AI endorsement should be issued by the insurance agent or broker as well. Without the AI endorsement, the AI carrier is likely to deny the claim on behalf of the AI. If this happens, the person that was promised AI coverage is likely to sue you for breach of contract, negligence, or even fraud (depending on the circumstances). Likewise, if someone has failed to properly name you as an AI and the carrier denies your AI claim, you may have a case for breach of contract, negligence, and fraud.
If you are not sure that you have properly complied with your AI obligations, contact your insurance broker or attorney. Better safe than sorry.
I am attorney Robert A. Von Esch IV. I practice business litigation, construction defect, and real estate law. If you have any questions, please do not hesitate to contact me via http://www.voneschlaw.com/.
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