Navigating the Minefield of Contractual Indemnity Coverage and Additional Insured Issues

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

3. Texas High School Example

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

5. New York Synagogue Example

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

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

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

9. Landlord/Tenant Example

10. Not Covered Covered Contractual Indemnity – What is Covered? Liability Indemnity

11. Crane Collapse Example

12. 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 CG 20 10 10 01 Excludes coverage for completed operations CG 20 37 10 01 Reinstates completed operations coverage CG 20 09 11 85 Specifically excludes completed operations CG 20 09 11 85 Specifically excludes completed operations CG 20 10 10 93 Limits coverage to “ongoing operations” Evolution of the AI Endorsement 1985 1993 2001 2004 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 ***

13. Questions