Introduction to the Second Edition

• Library: The Handbook on Additional Insureds (ABA) (2018 Ed.)

Judge Richard Posner, formerly of the Seventh Circuit Court of Appeals, once wrote: "Disinterested legal-doctrinal analysis of the traditional kind remains the indispensable core of legal thought, and there is no surfeit of such analysis today. I daresay that many legal scholars who today are breathing the heady fumes of deconstruction, structuralism, moral philosophy, and the theory of the second best would be better employed studying the origins of the Enlow-Ettleson doctrine or synthesizing the law of insurance."¹

We, the editors of the Handbook on Additional Insureds, do not fancy ourselves legal scholars, but through our own experience as insurance practitioners, we have assembled a group of other insurance practitioners to synthesize at least one part of the law of insurance—the current state of the status, rights, obligations, and disputes concerning additional insureds. This area of the law and business of insurance is still developing, and, in some instances, readers will note the divergent paths taken in different jurisdictions. The pace of evolution has not slowed since the original edition of this handbook several years ago. Even though Judge Posner wrote that "disinterested legal-doctrinal analysis of the traditional kind remains the indispensible core of legal thought," the Handbook on Additional Insureds aims to be anything but disinterested legal-doctrinal analysis. As with the original edition, this is a resource for the real world of insurance lawyers written by practitioners steeped in the daily business and legal realities of insurance, dealing with the important position and role of additional insureds.

At its most fundamental nature, "the purpose of additional insured coverage is to protect the additional insured from claims of vicarious liability, that is, liability based entirely on the relationship between two insureds, as opposed to any active negligence on the part of the additional insured."² Some jurisdictions have expanded the status of additional insureds beyond vicarious liability, and it is the more nuanced contours, exceptions, and alternative approaches taken across the country and internationally that have created a need for a resource such as this handbook.

We are pleased that our colleagues have taken up the task of revising the original edition. All chapters have been updated to include citations to additional jurisdictions for topics covered in the original edition and to include citations to decisions rendered since the original edition was published. Because the law changes, the prevailing rule in jurisdictions are updated where appropriate with citations to new case law, new statutes or regulations, and new policy wordings. In some instances, entire chapters have been rewritten. Among the chapters with significant revisions are Chapter 3 and its discussion of deductible and SIRs, Chapter 7 and its discussion of the employer's liability exclusion, Chapter 8's treatment of subrogation issues,

Chapters that have received near-complete rewrites include Chapter 4, "Memorializing Additional Insured Status" and Chapter 11, "Limits Issues."

Once again, we have included chapters addressing the law of Canada (Chapter 13) and the United Kingdom (Chapter 14), both of which have been fully updated and rewritten. We especially thank our Canadian and English colleagues for their contributions.

Overview of Contents

Chapter 1—Definitions and Comparisons of Commonly Used Titles. The first portion of the Handbook on Additional Insureds focuses on foundational matters; specifically, this chapter defines who/what is an additional insured. This chapter explains and compares the commonly used titles of "named insured," "additional named insured," "first named insured," "automatic insured," "additional insured," "loss payee," and "mortgagee." Certainly, these terms are not always used consistently throughout the industry or by the courts, but at a fundamental level these terms have different meanings. Consequently, knowing the differences and similarities between these different types of insureds informs an understanding of the implications of additional insured status. For example, this chapter discusses who bears the responsibility for premium payments, who may cancel the policy, and who may agree to changes in policy terms.

Chapter 2—Common Provisions. This chapter addresses risk...