Section 10.21 Section II—Who Is an Insured

LibraryInsurance Practice 2015

Under the commercial general liability (CGL) policy, the word “you” refers to the insured named in the Declarations. The word “insured” means any person or organization qualifying as such under SECTION II—WHO IS AN INSURED.

SECTION II—WHO IS AN INSURED is divided into four separate categories. In any category no person is an insured except with respect to the conduct of the named insured’s business. If the insured is designated in the Declarations as an individual, the insured and spouse are insureds; if designated as a partnership or joint venture, the members’ partners and spouses are insured; if designated other than as a partnership or joint venture, the officers and directors are insured with respect to their duties as such. Stockholders are insureds but only with respect to their liability as stockholders. The 2001 edition of the CGL policy adds trusts and trustees as insureds.

Executive officers and directors of an insured corporation are covered as insureds. Employees are also covered with some exceptions. There is no coverage for liability to a co-employee injured in the course of employment. In Martin v. United States Fidelity & Guaranty Co., 996 S.W.2d 506 (Mo. banc 1999), Donald Martin, while employed at the City of Boonville’s water treatment plant, was injured through the alleged negligence of Cauthon, a supervisor. Cauthon was not covered as an “employee” because the injury was to a co-employee. Cauthon sought coverage as an “executive officer,” which was a term that was not defined in the CGL policy. The court found that the phrase “executive officer,” as used in the policy, was ambiguous and granted coverage.

The second category of insureds involves the named insured’s employees. “Volunteer worker,” as defined, was added as an...

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