Property & Casualty Producer that helps employers reduce their insurance costs I Reduce their WC injury rates I Avoid the loss of $1.4M in sales/profits for the average disabling WC injury. 🟥 CRIS Certified.
Recent Court Decision Clarifies Additional Insured Coverage A recent New Jersey federal court decision on July 3, 2024, in Navigators Specialty Ins. Co. v. Citizens Ins. Co. of Am., has significant implications for additional insured coverage. The court ruled that the phrase "caused, in whole or in part" does not limit coverage to vicarious liability. This aligns with the majority approach across various jurisdictions, meaning that as long as the named insured is at least partly responsible for the harm, the additional insured can seek coverage. Example of Broader Coverage: Imagine a construction site where a subcontractor's worker gets injured. If the subcontractor is partly responsible for the injury, the general contractor (who is also covered by the subcontractor's insurance) can get help from that insurance, even if the general contractor also did something wrong that caused the injury. Example of Limited Risk Transfer: Now, think about if the court had decided that "caused, in whole or in part" only means vicarious liability. In this case, the general contractor would only get help from the subcontractor's insurance if they were being blamed just because of their connection to the subcontractor. If the general contractor did anything directly wrong, they wouldn't be covered. This would make it much harder for general contractors to get insurance help and transfer risk effectively. This broader interpretation supports easier access to additional insured coverage, facilitating better risk transfer and defense in lawsuits. Employers should review their insurance policies and contractual agreements to ensure they understand the scope of coverage and are prepared for potential litigation. Stay informed about legal trends to optimize your risk management strategies and ensure comprehensive coverage. #Insurance #RiskManagement #LegalUpdate #WorkplaceSafety #BusinessLaw
