Our Music, Photos, and Event Planner (MPEP) policy includes the additional insured endorsement form CG 20 10, but a few other types of endorsements are available by request for an extra charge. This blog will explain the different types and why they may be needed.
Other types of endorsements available for an additional charge include the following:
- Primary and Noncontributory. The cost for this endorsement is $100 for each certificate or $250 for the duration of the policy. Surplus lines taxes will apply - rates vary and are based off the insured's state of residence.
- Primary designates that one party’s liability policy is responsible for responding to a claim first before another entity’s policy applies.
- Noncontributory stops the primary party’s insurer from seeking contribution from the other entity’s policy for paying a claim. Noncontributory makes only one policy responsible for covering a loss.
- Waiver of Subrogation. The cost for this endorsement is $100 for each certificate or $250 for the duration of the policy. Surplus lines taxes will apply - rates vary and are based off the insured's state of residence.
- Requires an insurance company to forfeit its right to sue another insurer for full or partial payment made on a claim involving multiple parties.
Working together, Primary and Noncontributory language protects and additional insured's policy from contributing toward payment during a claim, while a Waiver of Subrogation prevents reimbursement after a claim payout.
The additional insured endorsement form CG 20 10 is included in the MPEP policy at no extra charge. This form is for owners, lessees, or contractors - scheduled persons or organizations:
- Requires specific information regarding the additional insured and the project.
- The additional insured (e.g., project owner, general contractor) is not insured for their own sole negligence. The insured/contractor must be liable in whole or in part for a loss before the additional insured can seek coverage under this endorsement.
- Coverage for the additional insured is for ongoing operations ONLY. In other words, when the contractor's work is completed on the project, the additional insured endorsement terminates. Any future alleged claims by the additional insured under this endorsement must have resulted from an occurrence when the project was "ongoing" by the insured/contractor.
- Coverage under the endorsement is only permitted to the extent that is allowed by law (which can vary by state).
- The endorsement does not require that a written contract be in effect which requires this additional insured status.
- However, if there is a contract in existence, then coverage provided by this endorsement will not be broader than what is required by the contract. Additionally, the endorsement will pay the lesser of the amount required in the contract OR the policy limit.
If you have any questions about the different types of endorsements or need to add an endorsement, please reach out to our MPEP Program Manager, Sheri, via email at sheri@specialtyinsuranceagency.com.
