![]() ![]() ![]() (b) Any other primary insurance available to you covering liability for damages arising out of the premises or operations, or the products and completed operations, for which you have been added as an additional insured by attachment of an endorsement. Then, we will share with all that other insurance by the method described in Paragraph c. If this insurance is primary, our obligations are not affected unless any of the other insurance is also primary. This insurance is primary except when Paragraph b. ![]() How does that work? Well, the text of the basic CGL policy (ISO Form CG 00 01 04 13, the “04 13” or April 2013 version) has the following provision dealing with “other insurance”: Simply said, current ISO form CGL insurance policies state that coverage is “excess” over any coverage the insured may have as an additional insured on another party’s policy and, by implication (at a minimum) will be the primary payer for (covered) claims against additional insureds. The same form of ISO CGL policy acknowledges that it will pay first (until the policy limit is exhausted). That’s because the commonly used ISO CGL policy reads that if its holder is an additional insured on someone else’s CGL policy, the additional insured’s own coverage will be “excess” to coverage under the insurance policy naming that party as an additional insured. (ISO), and each party’s policy actually would cover the claim, then the issuer of the additional insured endorsement will be the “primary” carrier. Today, when both parties have the most common type of Commercial General Liability (CGL) form policies, the ones utilizing the versions promulgated for the last 20 years by the Insurance Services Organization, Inc. At that point, if more needs to be paid, the other policy will cover the “excess.” When one of those two insurance policies is “primary,” and the other is not, the one that is primary will pay out until its policy limit is exhausted. “Primary(ness)” (as does “noncontributory”) has to do with the priority of payment and only involves a situation where one party, named as an additional insured on the other’s liability insurance policy, also has its own insurance. As a result, we got a few inquiries about the meaning or implication of that insurance term” and also about its sibling term, “non-contributory,” such as in: “The required coverage must be “primary and non-contributory.” So, here’s the scoop. Though our point was to highlight the danger of inexperience, the court-reported situation we described also dealt with a missing insurance concept, that of calling (or not calling) for “primary” coverage. Last week we wrote about a lease seemingly written by an inexperienced draftsperson. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. Archives
March 2023
Categories |