When two companies agree to work together, they will try to allocate the risk of something going wrong to the company that’s in the best position to prevent that from happening. For example, in the construction industry a general contractor will usually try to push risks from construction defects onto the subcontractors. That risk-transfer usually … Continue Reading
Search Results for: additional insured
In-House Counsel: Take Care in Contracting for Additional Insured Coverage from Foreign Suppliers
Most businesses, and particularly retailers, require that their suppliers name the retailer as an “additional insured” on the supplier’s general liability policy. This means that if a customer is injured because of the supplier’s product, and the customer sues the retailer, the supplier’s insurance will have to pay to defend the retailer in the lawsuit. … Continue Reading
Lessons in Contracting for Additional Insured Status from New Oregon Case
The dispute in Security National Insurance Company v. Sunset Presbyterian Church, __ Or. App.__ arose out of construction claims involving a church, its general contractor, a subcontractor, and the subcontractor’s liability insurer. In an underlying lawsuit, the church brought claims against the general contractor (Andersen), who brought third-party claims against its subcontractors, including its masonry … Continue Reading
Additional Insured Promises Mean Companies May Pay Twice for Employee Injuries
Most business owners understand that in exchange for paying premiums for workers compensation insurance, they get immunity from suit from their own injured employees. This is usually referred to as the workers compensation “exclusive remedy”: if an employee accepts workers compensation insurance benefits, the employee may not sue the employer (subject to certain exceptions for … Continue Reading
Oregon Employer Liability Ruling Highlights Importance of Additional Insured Status
Earlier this year the Oregon Supreme Court expanded the potential liability of contractors and others for injury to employees of others on a job site, making it more critical than ever for contractors to ensure that they have additional insured protection. In Yeatts v. Polygon Northwest, an employee of a framing subcontractor on a building project … Continue Reading
New Oregon Decision Impacts Umbrella Coverage and Additional Insured Status
A new decision from the Oregon Supreme Court on indemnity agreements may impact one of the most headache-inducing negotiating points in indemnity contracts: “additional insured” coverage under umbrella policies. Common assumptions about what to require as “additional insurance” may need to be re-examined as a result. General contractors usually demand that subcontractors procure primary-layer liability … Continue Reading
In Washington, Coverage for Sole Proprietorship Must Include Broad Definition of “Insured”
I ran across a cautionary tale recently in a new Washington federal-court decision in Staheli v. Chicago Insurance Company. The lesson: in Washington, or any other community-property state, a liability policy covering a sole proprietorship must define “insured” broadly to cover the spouse of the proprietor. This is a cautionary tale for insurance agent/brokers as much … Continue Reading
Insurance and Cannabis – Requirements, Exclusions, Positive News
Cannabis businesses don’t have many options when it comes to insurance, because major insurance players are staying out of the market until cannabis is reclassified under federal law. However, cannabis licensees are required to carry insurance by state law (discussed below), and often by landlords, lenders, customers or suppliers. Recent vaping-related bodily injuries have also … Continue Reading
“Contractors Special Conditions” Endorsement Sets Traps for Policyholders and Defense Counsel
An endorsement that has become common in general contractors’ insurance policies can function as a trap for both the policyholder and defense counsel. The “Contractors Special Conditions” endorsement requires that the policyholder must have written contracts with each subcontractor that it uses on a project, and that those agreements must meet certain requirements. If there … Continue Reading
The Latest on the Duty to Defend in Oregon
Last year our partner Seth Row reported on an Oregon Court of Appeals decision, West Hills Development Co. v. Chartis Claims, Inc., 273 Or App 155 (2015). In West Hills, Oregon Auto Insured, a subcontractor, and the liability policy named the general contractor as an additional insured. In an underlying lawsuit by homeowners alleging construction defects, the … Continue Reading
