Additional Insured Coverage

Often, contractors must name their up-stream contractors as additional insureds as a covenant or condition in their contract. Hector Chavana Jr is an experienced commercial insurance agent. He can be reached at 713-979-2941, and he can go over you requirements with you over the phone. He has clients all over Texas. This post discusses the different types of additional insured coverage.

Naming another party as an additional insured on a commercial insurance policy can afford that additional insured certain protection. However, not all additional insured coverage is the same. According to IRMI, for example, the Owners, Lessees or Contractors (CG 20 10 07 04) endorsement does not provide coverage for the additional insured after work has been completed.

On the other hand, Owners, Lessees or Contractors—Completed Operations (CG 20 37 07 04) does provide coverage to the additional insured after work has been completed. Here is a snippet of the IRMI article:

An example of such an exclusion can be found in the ISO Additional Insured—Owners, Lessees or Contractors (CG 20 10 07 04) endorsement. The additional insured has no coverage for any for injury or damage that occurs after work is completed. Of course, Insurance Services Office, Inc. (ISO), has promulgated a separate additional insured endorsement, Additional Insured—Owners, Lessees or Contractors—Completed Operations (CG 20 37 07 04), that will provide the additional insured coverage for injury or damage that occurs after the work is completed—work that is included within the “products-completed operations hazard.”

Primary and non-contributory coverage, however, simply means that the policy will respond first and foremost, even if the additional insureds policy may provide some coverage.

If your additional insured requires a specific type of coverage, make sure that you tell this to your insurance agent before you purchase the insurance. The best way to find out if you need a particular type of insurance is to ask the additional insured what you will need in order to start work. Once the policy is bound, you may not be able to finance the additional cost of adding the additional insured.

Hector Chavana Jr is an experienced insurance agent, and he can help to find the right coverage for your. Hector is a commercial insurance agent in Houston, Texas, and can insure you in any part of Texas.

To find the right commercial policy for you and you additional insured, call Hector at 713-979-2941. He can often provide a quote immediately, depending on the trade in which you are involved. He has insureds that are one-mand business to insureds that work for some of the state’s largest malls.