May 06, 2019 Article

Certificates of Insurance and the Additional-Insured Trap

If you have a great client, with an on-the-ball staff who ties up every loose end, then you’re fine. But in reality, not every client is quite that dogged and on point.

By Kenneth R. Van Vleck, Esq.

You get the call from a longstanding client, your small-shop commercial landlord, Landgrabber, LLC: “My tenant runs a bar, and I’ve been sued by one of the tenant’s customers who was roughed up by the bouncer.” Landlord liability is real, and potentially expensive. But, you think, there’s a solution. You wrote that lease, so you know it requires the tenant to buy commercial general liability insurance, and name your client as an additional insured. Problem solved, you say, “We’ll tender to the carrier. Send me their policy.”

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