Source: https://www.constructionrisk.com/, May 31, 2024
By: Kent Holland

General Contractor for a condo building settled the project developer’s claim against it and then filed suit against its subcontractor/engineer’s insurance agent based on the agent’s misrepresentation on a certificate of insurance and failure to procure additional insured coverage for the GC.   When retaining the engineer to prepare a geotech report and site survey, the GC sent the engineer its vendor packet with insurance requirements stating that all subcontractors must name the GC as an additional insured on the commercial general liability policy.  It included a specific sample Additional Insured Certificate.  The Engineer emailed the vendor packet to its insurance agent and requested the certificate of insurance, which the agent executed with the statement that the certificate holder was an additional insured.  When the claim was ultimately made, the insurance carrier declined to defend and indemnity the contractor because it asserted no additional insured endorsement had been issued, and because broad form additional insured coverage was not available due to lack of a written contract requiring such coverage.  Court held the agent failed in the duty it owed the GC to procure additional insured coverage and the professional services exclusion in the CGL policy didn’t unequivocally exclude coverage for the GC in this case.  TCF Enterprises Inc. v. Rames Inc., 415 Mont. 306 (Montana Supreme Ct 2024). Read more.