For some time now, roofing contractors have been contractually
required to name other parties as additional insureds. For new
construction projects, roofing contractors typically are required
to name general contractors, owners and architects, as well as
their officers, agents and representatives, as additional insureds
on commercial general liability (CGL) insurance policies.
Similarly, owners and property managers often require they be named
as additional insureds in roof system replacement and repair
contracts. However, you need to be aware of how naming additional
insureds can affect you.
There is a huge difference between naming someone an additional
insured and providing a certificate of insurance or maintaining
contractual liability insurance coverage. Providing a general
contractor or owner with a certificate of insurance and naming
either as a certificate holder is intended to show you have the
described insurance in place. (Most CGL insurance policies include
often overlooked contractual liability insurance coverage, which
provides insurance coverage when you contractually agree to accept
responsibility for tort liability [liability imposed by law in the
absence of a contract or agreement] to pay for bodily injury or
property damage to a third person or organization resulting from
But when you name someone an additional insured, you entitle
that person to the benefits of the insurance coverage you purchased
to protect yourself, thereby increasing the risks borne by your
insurance carrier. If a claim against an additional insured is
paid, the policy limits available to you are reduced. Also, claims
against the additional insured may lead to premium increases and
adversely affect your ability...
Log in or register for FREE access to this article and other Professional Roofing online content.