Navigating the Minefield of Contractual Indemnity Coverage and Additional Insured Issues RIMS 2008 Annual Conference & Exhibition May 30, 2008 San Diego, CA Kevin R. King Turner Construction Company Paul J. Van Osselaer Van Osselaer, Cronin & Buchanan, L.L.P. Tracy Alan Saxe Saxe Doernberger & Vita, P.C.

Texas High School Example

Risk Transfer Vehicles Additional Insured Coverage 3rd Party Liability Insurance CGL Professional Pollution 1st Party Insurance Indemnity Property Builders Risk Contractual Rights

New York Synagogue Example

Hotly Contested Issues Allocation Priority of Triggered Coverages “Other Insurance” Waiver of Subrogation Notice

Place Your Bet! Black: You break even! Red/Green: You lose!

Additional Insured (AI) Coverage Advantages/Disadvantages Interpretation Evolution of AI Endorsements Completed/Ongoing Operations Certificates of Insurance

Landlord/Tenant Example

Liability Not CoveredCovered Indemnity Contractual Indemnity – What is Covered?

Crane Collapse Example

Evolution of the AI Endorsement CG “arising out of” CG Limits coverage to “ongoing operations” CG Excludes coverage for completed operations CG Reinstates completed operations coverage CG Replaces “arising out of” with “caused in whole or in part”; Excludes completed operations CG Specifically excludes completed operations CG Excludes coverage for completed operations CG Reinstates completed operations coverage CG Limits coverage to “ongoing operations” CG Specifically excludes completed operations CG “arising out of” CG Replaces “arising out of” with “caused in whole or in part”; Excludes completed operations ***

Questions

Evolution of the AI Endorsement CG “arising out of” CG “arising out of”

Evolution of the AI Endorsement CG Specifically excludes completed operations CG Specifically excludes completed operations

Evolution of the AI Endorsement CG Limits coverage to “ongoing operations” CG Limits coverage to “ongoing operations”

Evolution of the AI Endorsement CG Excludes coverage for completed operations CG Reinstates completed operations coverage CG Excludes coverage for completed operations CG Reinstates completed operations coverage

Evolution of the AI Endorsement CG Replaces “arising out of” with “caused in whole or in part”; Excludes completed operations CG Replaces “arising out of” with “caused in whole or in part”; Excludes completed operations