June 25, 2018 Practice Points

No “Additional Insured” Coverage for Project Managers

Despite general contractor’s agreement with project owner to provide such coverage, a New York court found coverage was not conferred

by Eric Hermanson and Tony Miscioscia

Project managers overseeing large construction projects almost always try to transfer their risk of liability downstream to general contractors, subcontractors, and suppliers. One of the key ways they do so is through contractual requirements that call for those parties to purchase CGL coverage naming the project manager as an “additional insured.”

Recognizing these arrangements, many insurers now include endorsements on their policies that provide “blanket additional insured” coverage to upstream parties. ISO Form 20 33 07 04 is one such endorsement. It provides as follows:

WHO IS AN INSURED (Section II) is amended to include as an insured any person or organization with whom you have agreed to add as an additional insured by written contract but only with respect to liability arising out of your operations or premises owned by or rented to you …

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