Endorsements and Provisions

Question 1

Additional Insured status

Answer 1

Additional insured status extends the protections and benefits of an insurance policy to parties not originally named as insureds in the underlying policy.

This is usually achieved through an additional insured endorsement.

Question 2

Named insured vs. Additional insured: What is the difference?

Answer 2

Whereas the named insured is entitled to full coverage under its policy, additional insureds are only covered by the named insured’s policy with regards to liability arising as a result of the named insured’s negligence.

Question 3

Additional insured endorsement

Answer 3

An additional insured endorsement is an amendment to an insurance policy that broadens its coverage to persons or organisations not originally named as insureds.

Scheduled endorsements explicitly list out the name of any persons or organisations that are granted additional insured status in a designated schedule on the endorsement.

Blanket additional insured endorsements do not name any specific person or organisations as additional insureds. Instead, they include a general description of the categories or types of persons or organizations that are to be covered by the policy, such as owners, lessees, or contractors

Question 4

Additional Insured for Ongoing Operations

Answer 4

Ongoing Operations coverage encompasses liability for any risk associated with a contractor’s ongoing work on premises until that work is either completed or ceases.

Question 5

Additional Insured for Completed Operations

Answer 5

Completed operations coverage encompasses all liability arising from a contractor’s finished product or work once operations on premises cease.

Question 6

Waiver of Subrogation

Answer 6

A Waiver of Subrogation is a provision by which the insurance company surrenders its right to sue third parties for compensation on behalf of the insured. Landlords never want to be sued by their tenant or vendors’ insurance company, so many require tenants and vendors to evidence a Waiver of Subrogation.

Question 7

Primary & Non-Contributory

Answer 7

This means that the contractor’s policy must pay before other applicable policies (primary) and without seeking contribution from other policies that also claim to be primary (noncontributory).

Question 8

Notice of Cancellation

Answer 8

Notice of Cancellation refers to an insurance company’s obligation to inform the certificate holder if the insured cancels an insurance policy.