Contractual Indemnity and Additional Insured Liability

The “Contractual Indemnity & Additional Insured Liability” course teaches insurance professionals how to proceed after receipt of a tender letter and deal with the complexities of contractual indemnity and additional insured liability. The module is presented by Dan Kohane, member at Hurwitz Fine PC., and John Hanlon, now Director Complex Claims and Litigation at Kemper Insurance.

The course begins with an argument for separating contractual indemnification from additional insured coverage in investigating and handling claims. Next, the presenters explore what documentation is needed within each “bucket” and how to identify all the parties that could be involved in the claim. Section 3 explored key endorsements, avoiding pitfalls, and complexities such as privity. Then the presenters took a deep dive into critical policy language such as “ongoing operations,” “performed for,” “not broader than that required by the trade contract”, and more. The presenters next examined how parties interact in complex claims, including discussion of pro rata calculation, procurement language, and who is primary vs. excess for whom when you have chains of relationships between parties. Finally, the presenters bring it all together by discussing how the “buckets” interact, and in particular how to follow a complex issue where an endorsement can remove an exception to an exclusion, thereby eliminating coverage.

After completing the course, the attendee will be able to:

respond effectively to tender letters

identify relevant parties and diagram their relationships and privity

request documentation needed to determine what parties owe

navigate the complexities of additional insured liability and contractual indemnity;

and, allocate responsibility among carriers at various levels

The course is designed for insurance professionals working in the area of casualty adjusting.