When Misty Dutton of MD Dutton Plumbing in North Richland Hills, Texas wrote her kind Google review in September 2021, we never anticipated it would be such a boost to our business here at Texas Commercial Liability Services. Google has informed us that this one review has reached a thousand views! Thanks, Misty, and thanks to all our loyal customers whose businesses we serve.
Ongoing and Completed Operations – It is standard practice for an already listed additional insured contractors to require that coverage to extend to ongoing and completed operations. This practice protects the contractor and owners from losses that occur during the course of construction, as well as claims arising out of the completed project (damages found after the project is completed). Often times, damage resulting from a subcontractor’s work isn’t apparent for years after the work has been completed. When that claim occurs, a suit is often filed against both the general contractor and the subcontractor, and the general contractor will tender the defense back to their subcontractor. Thus, the reason for the requirement. They are “building walls of defense” to hurdle through before the claims actually need to payout through their own policy and be counted as a loss against them.
Primary and Non-Contributory – only required from a person or entity already added as an additional insured to your policy. It is an endorsement that makes your policy the first to pay in the event of a claim and does not allow your policy to seek contribution from another policy. The reason your contractor requires that is because they do not want your insurance to seek contribution (shared expense) from their insurance policy after it pays a claim on their behalf.
Waiver of Subrogation – prevents one party’s insurance carrier from pursuing a claim against the other contractual party in an attempt to recover money paid by the insurance company to its insured or to a third party in resolution of a covered claim. Usually in favor of the Certificate Holder.
Sometimes you may have additional requirements that may lead to policy endorsements. An endorsement is an amendment or addition to an existing policy which changes the terms or scope of the original policy. These are sometime referred to as riders. The cost of these endorsements depends on the endorsement itself and the company you are insured with. We will always provide you with a fee schedule at the time you choose to bind/renew your policy.
The most common requirements requested on a commercial General Liability policy are:
Additional Insured Endorsement allows a person or organization to enjoy the benefits of being insured under an insurance policy, in addition to whoever originally purchased the insurance policy.
Benefits for a party to be covered as an Additional Insured on the policies of other parties include: