2. 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.

4. Texas High School Example

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

6. New York Synagogue Example

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

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

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

10. Landlord/Tenant Example

11. Liability Not CoveredCovered Indemnity Contractual Indemnity – What is Covered?

12. Crane Collapse Example

13. Evolution of the AI Endorsement CG 20 10 11 85 “arising out of” CG 20 10 10 93 Limits coverage to “ongoing operations” CG 20 10 10 01 Excludes coverage for completed operations CG 20 37 10 01 Reinstates completed operations coverage CG 20 10 07 04 Replaces “arising out of” with “caused in whole or in part”; Excludes completed operations 1985 2004 20011993 CG 20 09 11 85 Specifically excludes completed operations CG 20 10 10 01 Excludes coverage for completed operations CG 20 37 10 01 Reinstates completed operations coverage CG 20 10 10 93 Limits coverage to “ongoing operations” CG 20 09 11 85 Specifically excludes completed operations CG 20 10 11 85 “arising out of” CG 20 10 07 04 Replaces “arising out of” with “caused in whole or in part”; Excludes completed operations ***

14. Questions

15. Evolution of the AI Endorsement CG 20 10 11 85 “arising out of” 1985 2004 20011993 CG 20 10 11 85 “arising out of”

16. Evolution of the AI Endorsement 1985 2004 20011993 CG 20 09 11 85 Specifically excludes completed operations CG 20 09 11 85 Specifically excludes completed operations

17. Evolution of the AI Endorsement CG 20 10 10 93 Limits coverage to “ongoing operations” 1985 2004 20011993 CG 20 10 10 93 Limits coverage to “ongoing operations”

18. Evolution of the AI Endorsement CG 20 10 10 01 Excludes coverage for completed operations CG 20 37 10 01 Reinstates completed operations coverage 1985 2004 20011993 CG 20 10 10 01 Excludes coverage for completed operations CG 20 37 10 01 Reinstates completed operations coverage

19. Evolution of the AI Endorsement CG 20 10 07 04 Replaces “arising out of” with “caused in whole or in part”; Excludes completed operations 1985 2004 20011993 CG 20 10 07 04 Replaces “arising out of” with “caused in whole or in part”; Excludes completed operations