Liability Extensions
From The Original Insurance Wiki
All policies may be "extended". Here are common extensions to consider.
Leased Workers Included as Insureds
The typical policy should include leased workers, however, the definition of a leased worker will not include temporary workers.
Non-Owned Watercraft
Typical policies include coverage for non-owned watercraft under 26 feet. Some carriers will extend this length limitation to approximately 50 feet (otherwise this exposure could be covered by an umbrella policy).
Additional Insureds automatically included where required by (written) contract
Who is an insured should be amended to include any person or entity to whom you become obligated to include as an additional insured as a result of any contract or agreement you enter. Coverage provided should be limited to the limits required in the contract (and/ or the limits of insurance).
"Who is an Insured" should be amended to include any person or organization to whom you are obligated to include as an additional insured as a result of any contract or agreement, but only with respect to liability arising out of the operations or obligations in the contract.
Additional Insured - Vendors
Often referred to a Broad Form Vendors Coverage
The Vendors Coverage Endorsement extends your products liability coverage to include vendors of your products. This coverage is required by most vendors. You should review your contracts with your vendors to determine whether there is a need for this coverage.
Additional Insured - Owners, Lessees, or Contractors
Extends coverage for Owners, Lessees, or Contractors.
Additional Insured - Volunteers
This may be included in many forms automatically.
Volunteers should be included as additional insureds under your policy so they will be protected if they are named as individuals in a suite arising out of their activities on your behalf.
Alienated Premise
Policies may exclude coverage for an insured location that the insured has sold, leased to others, or has relinquished operational control. The exclusion can be modified to provide coverage for sites that the insured leases and ongoing coverage for locations that have been sold.
Additional Insured - Manager or Lessor of Premises
Extends coverage for Managers or Lessors of your Premises.
Host Liquor Liability
Note, this coverage will typically exclude those entities in the business of selling or serving alcohol.
Non-Owned Aircraft
Typical policies exclude coverage. Some carriers will provide where there is a rented aircraft, with a trained paid crew not carrying persons or property for a charge.
A non-owned aircraft policy is advisable to address this exposure.
Punitive Damages
Over 20 states consider punitive damages to be "un-insurable", including California, Connecticut, Florida, Illinois, New Jersey, New York, Ohio, and Pennsylvania. It is questionable at best in several other states.
Insureds can consider purchasing an "offshore" Punitive Damages wrap-around policy to fill the potentially serious gaps in coverage created by state insurance law and evasive policy language. Note, purchasing this coverage create complex tax and legal implications.
Personal and Advertising Injury Extension
Extends coverage for Personal and Advertising Injury where assumed by contract.
Aircraft Products Coverage
Note, even manufacturers of small or seemingly inconsequential parts or components should explore the impact of this exclusion and consider separate Aircraft Products Coverage where appropriate.
Fellow Employee Coverage
The typical policy excludes coverage for an employee injuring another employee in the course of employment (who is named individually in the suit). Consideration could be given to extending this coverage to key employees or management.
Note, this coverage should be considered even if the insured is located in a state with laws that preclude or limit the right to recover for injury caused by a fellow employee as out of state operations and business travel could create an insurable exposure.
Stop Gap - Employers Liability
This coverage typically provides Employers Liability coverage in monopolistic workers compensation states, such as: ND, OH, WA, WV, and WY. This coverage may also be provided on the workers compensation policy, however, it may be advisable to consider covering on the General Liability policy due to deductible and experience mod implications.
Note, duplicate coverage should be eliminated if covered by both GL and Work Comp.
Errors & Omissions (Professional Liability)
Coverage may be provided on a limited basis for the insured's products or services for failure to perform whether or not the failure causes damage or loss of use to tangible property.
