Additional Insured Form Undergoes Change

Transactional attorneys involved in negotiating commercial leases, construction contracts, or any contract in which one party requires the other party to provide insurance against personal injury or property damage should have a good understanding of the new “additional insured” form endorsement to a Commercial General Liability (CGL) insurance policy. This endorsement has recently undergone a significant change, and this change may result in an unintended and adverse effect on the insurance coverage available to a party named as an additional insured under another party's liability policy. Now, more than ever, lawyers drafting or reviewing contracts providing for additional insured liability coverage must closely review the underlying insurance policies providing such coverage.