Only General Contractor (and not Project Owner) had Additional Insured Status Under a Subcontractor’s CGL Policy
Source: https://www.constructionrisk.com/, January 31, 2025
By: Kent Holland
Project owner entered into a general construction contract with a GC for construction services. The GC then entered into a subcontract requiring the subcontractor to indemnify and hold harmless the GC and the Owner, and also required the subcontractor to maintain a CGL policy naming the GC, the Owner and other noncontractor entities as additional insureds under the policy.
When a subcontractor’s employee was injured on the job, he sued the GC, project owner and other noncontractor entities. The CGL carrier refused to defend and indemnify any of the noncontractor entities. Those entities then sued the carrier, and the trial court denied the carrier’s motion for summary judgment to dismiss the suit. On appeal, this was reversed with the court holding that only the GC who was in contract with the subcontractor was an additional insured. New York City Housing Authority v. Harleysville Worcester Insurance Company, 226 A.D. 3d 804 (2024). Read more.
