CCDC Publishes Bulletins - Part 2
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Bulletin 20 – Part II: Additional Insureds
Many contracts require third parties to be included under a Commercial General Liability (CGL) policy as an "additional insured.” Insurers respond by using additional insured endorsements in varying shapes and forms, which do not always achieve what is required in a contract. For example, some insurers intend to provide coverage to additional insureds for defence costs only, and others for liability arising out of vicarious liability. The phrase most often used by the insurance industry on an additional insured endorsement or on a Certificate of Insurance is "ABC Company is added as an Additional Insured but only with respect to the operations of the Named Insured.”
