Civil Litigation,
Construction,
California Courts of Appeal
Dec. 21, 2017
Court broadly interprets ‘ongoing operations’ of additional insureds
A California Court of Appeal broadly interpreted what an insurer classified as an "ongoing operations" endorsement and emphasized the importance of the specificity of language utilized in such endorsements.
Additional insured coverage has become a standard risk-transfer path in the realm of construction. Typically, a general contractor, owner or developer is granted additional insured coverage on a subcontractor's liability policies by endorsement. The extent of that coverage is determined by the subcontractor's contractual obligations to the upstream party, the language of the endorsement, and any applicable statutory or jurisdictional limitations.
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