The Client Wants to be Named on Your Policy

Kelan J. Vorbach, CIC
Professional Liability
Program Manger,
John B. Wright Insurance

If a client asks to be named additional insured on your firm’s professional liability policy, don’t just say okay and have the office manager call your agent.   Making a client an additional insured allows the carrier to invoke the insured versus insured exclusion. The following policy wording is typical:

 

EXCLUSIONS

This insurance does not apply to claims:

4. Made by one insured under this policy against another insured under this policy.

 

The additional insured endorsement is normally used to make an over contractor an insured on a subcontractor’s policy, to protect the over contractor from claims made by third parties, where the over contractor may have vicarious liability for the subcontractor’s negligence. In the attorney client relationship, the client (rather than a third party) is by far the most likely claimant. Further, most clients are not attorneys so they have no professional liability exposure. The additional insured endorsement serves only to exclude coverage for the most likely claimant, the client.

 

Each situation is different. If you have specific questions contact your agent or give me a call.

Kelan J. Vorbach, CIC is the Professional Liability Program Manager with John B. Wright Insurance. You can check him out at http://www.LawFirmInsuranceExpert.com. For a consultation call 732-223-6611 ext. 108.

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