Latest News

17 Jun, 2020

Shoddy Construction Work – Is it covered by your CGL?

2020-06-13T10:31:54-05:00June 17th, 2020|Commercial General Liability (CGL), Construction Contractor Advisor|

A recent 8th Circuit Court of Appeals case, applying Missouri law, reminds us that shoddy workmanship may not be covered by your commercial general liability insurance.  This also means that if an owner claims your faulty workmanship caused problems on the project, you may have to pay those damages out of your own pocket, not the insurers. In this case, American Family Mutual Insurance Co., S.I. v. Mid-American Grain Distributors, [...]

8 Jun, 2015

RAILROAD ADDITIONAL INSURED COVERAGE

2018-04-23T20:59:42-05:00June 8th, 2015|Additional insured coverage, Commercial General Liability (CGL), Contract liability coverage, Midwest Insurance Law Guide|

 KEEPS CHUGGING ALONG... Railroads have been asking for additional insured coverage from their vendors, contractors and lessees for some time now.  The body of case law challenging that coverage is slowly building.  In the railroads' favor.  Let's take a look together at the most recent case for some additional nuggets of insight. In Norfolk Southern Ry Co., v. National Union Fire Ins. of Pittsburgh, PA, 999 F. Supp. 2d 906 (U.S. Dist. [...]

16 Jan, 2015

Insurance News Flash: MANURE IS A POLLUTANT!

2018-04-23T20:59:42-05:00January 16th, 2015|Commercial General Liability (CGL), Midwest Insurance Law Guide, Pollution exclusion|

This should be no surprise to my dear readers! The Wisconsin Supreme court has recently ruled that manure contamination is not a covered loss under the standard CGL policy.  In Wilson Mutual Ins. Co. v. Falk, 2014 WI 136 (Wis. 2014),  the court ruled that manure runoff, which had contaminated several nearby drinking water wells, was a pollutant and therefore excluded from coverage. The Wilson policy covered losses for property damages and bodily injury.  [...]

17 Mar, 2013

POLLUTION IS NOT COVERED – AND WE (MAYBE) MEAN IT THIS TIME!

2018-04-23T20:59:45-05:00March 17th, 2013|Commercial General Liability (CGL), Environmental pollution coverage, Midwest Insurance Law Guide, Pollution exclusion|

♣WE ARE GREEN TODAY FOR ST. PATRICK’S DAY!♣      We can fairly sum up the history of pollution insurance coverage with one word: confusion.  This is because underwriters and ISO forms have made it pretty clear that almost all pollution and environmental losses are not covered; yet courts have found creative ways to insist that they are a covered loss.        This push and pull has left most of us confused as to whether or not it [...]

7 Mar, 2013

WHAT RAILROADS SHOULD KNOW ABOUT BEING AN ADDITONAL INSURED BY CONTRACT

2018-04-23T20:59:45-05:00March 7th, 2013|Additional insured coverage, Commercial General Liability (CGL), Contract liability coverage, Indemnity clauses, Midwest Insurance Law Guide, Railroad endorsement, Railroad indemnity|

Railroads can be covered for losses caused in whole or in part by a contractor.  If a railroad is added to the contractor’s Commercial General Liability (CGL) insurance policy as an additional insured, all losses which arise out of the contractor’s work should be covered. The case of Cont’l Cas. Co. v. Auto-Owners Ins. Co., 238 F.3d 941, 944 (8th Cir. 2000) explains this concept of risk transference.  There, Burlington Northern R.R. Co. contracted with [...]

4 Mar, 2013

NEW CGL POLICY LANGUAGE EFFECTIVE 2013

2018-04-23T20:59:45-05:00March 4th, 2013|Commercial General Liability (CGL), Insurance contract, Midwest Insurance Law Guide|

ISO has issued new Commercial General Liability (CGL) forms and endorsements that are operative as of April 2013.   Many of these new policy provisions will affect our readers.   Some take away coverage, others add more, and a few new ISO provisions set forth clarification of the meaning of existing forms. I will periodically discuss in the Guide how these new provisions change coverage in future policies.  Many states have already adopted these changes, including [...]

28 Feb, 2013

LATE NOTICE TO AN INSURANCE COMPANY IS NO BAR TO COVERAGE

2018-04-23T20:59:45-05:00February 28th, 2013|Commercial General Liability (CGL), Midwest Insurance Law Guide|

All policies contain a provision which tells the policyholder how to inform the insurance company about a loss.   The provisions are called “notice of loss” clauses.  They are considered a condition precedent to payment under the policy.  A condition precedent is an act that must occur before indemnity will arise under the insurance contract.  In other words, the policyholder must follow the notice of loss requirements before he will get paid. Courts, however, are not so firm [...]

25 Jan, 2013

EXTENDING ADDITIONAL INSURED COVERAGE BY COURT OPINION

2018-04-23T20:59:45-05:00January 25th, 2013|Additional insured coverage, Commercial General Liability (CGL), Complex insurance coverage, Contract liability coverage, Indemnity clauses, Insurance contract, Midwest Insurance Law Guide, Property and casualty|

I often discuss the role of the courts in broadening coverage for additional insureds in a Commercial General Insurance (CGL) policy.  Here is another case where a court has extending coverage – probably well beyond what the underwriter intended at the time the policy was issued.   In the case of Evanston Ins. Co. v. ATOFINA Petrochemicals, Inc., 256 S.W.3d 660, 666 (Tex. 2008), ATOFINA contracted with Triple S Industrial [...]

22 Jan, 2013

MUTUAL WAIVER OF SUBROGATION CLAUSES

2018-04-23T20:59:45-05:00January 22nd, 2013|Commercial General Liability (CGL), Complex insurance coverage, Construction liability, Construction subrogation, Midwest Insurance Law Guide, Mutual waivers|

Because they are more and more commonly used, it is worth our time to look into these clauses and understand how they affect both the policyholder and the insurance company.  Let’s start with discussing what these clauses mean.    What is a mutual waiver of subrogation clause?  These clauses are commonly found in construction and landlord tenant contracts.  The language insists that the parties to the contract mutually agree to waive [...]

4 Jan, 2013

WHO IS AN ADDITIONAL INSURED?

2018-04-23T20:59:45-05:00January 4th, 2013|Additional insured coverage, Commercial General Liability (CGL), Contract liability coverage, Indemnity clauses, Midwest Insurance Law Guide|

Adding another company as an Additional Insured under your own Commercial General Liability (CGL) policy is a common practice.  The addition protects that other entity against your company’s negligence.  The coverage is almost always limited to “your” work, meaning the work being performed by the Named Insured, not the Additional Insured. This is commonly done in conjunction with an indemnity agreement between the parties.   Additional Insured status is a method [...]