SDV Partner Gregory Podolak recently published “Additional Insured Coverage Under Excess Policies,” another Expert Commentary article for IRMI:
As part of their insurance and indemnity requirements, project owners and general contractors often require additional insured coverage in excess of $1 million from the project’s subcontractors. Subcontractors ordinarily satisfy this limits obligation through a combination of primary and excess general liability insurance, with parties expecting the coverage to be consistent throughout.
This coverage is usually verified at the onset only by copies of the certificates of insurance and additional insured endorsements, not the production of complete policy forms. So, it often comes as a surprise that the additional insured coverage under excess policies can be more restrictive than the primary. The resulting gap in coverage can present unique exposure considerations for upstream and downstream parties alike.
The author would like to acknowledge and thank coauthor Brian J. Clifford for his contributions to this commentary.