Favorable Ruling in Additional Insured Coverage Dispute
/ 20.Jun, 2011
William T. Salzer secured a favorable ruling in a declaratory judgment action on behalf of a commercial general liability insurer in a decision of first impression in Pennsylvania concerning whether insurance coverage extends to an indemnification claim where the construction contract was signed after the date of accident. Coverage afforded the putative additional insured, an owner and general contractor, was restricted to instances in which the injury occurred subsequent to the execution of the written contract under which the named insured subcontractor agreed to obtain insurance. The subcontractor was performing operations for several months under a bid proposal. The parties had yet to formalize the agreement and negotiated changes to the construction contract which were agreed upon after a fall down accident. The court held that “execution” of a written contract did not simply mean performance, but required the parties’ signature on the agreement. The court further held that that endorsement provided coverage only for vicarious liability of the additional insured and not the claims of joint and several liability against the owner and general contractor.