Business Insurance – Who is an Insured

Who is an Insured On A Commercial General Liability Policy

Business Insurance – Who is an Insured? Revisions in the CG 00 01 04 13, the April 2013 Commercial general Liability Form

When taking out a Commercial General Liability it is important to recognize who is an Insured, and who is not an Insured, it is also important to understand who can, and who can not be named as an Additional Insured

Who is an additional insured on the 2013 edition of the CGL, Commercial General Liability Form?*

Business Insurance – Who is an Insured If the named insured is an Individual:

As an individual, you and your spouse are insureds, but only with respect to the conduct of a business of which you are the sole owner If the named insured is a partnership or Joint Venture:

A partnership or joint venture you are an insured. Your members, your partners, and their respective spouses are also insureds, but only with respect to the conduct of your business

If the named insured is an LLC:

A limited liability company, you are an insured. Your members are also insured, but only with respect to the conduct of your business. Your managers are insureds, but only with respect to their duties as your managers.

If the named insured is a Trust:

A trust, you are an insured. Your trustees are also insureds, but only with respect to their duties as trustees.

If the named insured is another type of organization:

An organization other than a partnership, joint venture or limited liability company, you are an insured. Your “”Executive Officers”” and directors are insured, but only with respect to duties as your officers or directors. Your stockholders are also insureds, but only with respect to their liability as stockholders.

If the named insured are Volunteers and Employees

Each of the following are also an insured: Your “”volunteer workers”” only while performing duties related to the conduct of your business, or your “”employees””, other than your “”executive officers”” (if you are an organization other than a partnership, joint venture or limited liability company) or your managers (if you are a limited liability company), but only for acts within the scope of the their employment by you or while performing duties related to the conduct of your business,

If the named insureds are Real Estate Managers:

Any person (other than your “”employee”” or “”volunteer worker””), or any organization while acting as your real estate manager.

IMPORTANT: It is important to note than because, by definition, Real Estate Managers are Insureds, they can not be named as additional insureds. If you are a Real Estate manager and your contract requires your tenants to name you as an additional insured, this is a request that the CGL form does not permit. Please have your legal team revise your contracts and simply ask for a copy of the policy form. It should also be noted that if you are a Real Estate Manger, you should have a contract in place that designates you as such to back up your status as an insured party.

BE ADVISED

For more information on additional insured’s read this about the misnomers of insurance certificates

No person or organization is an insured with respect to the conduct of any current or past partnership, joint venture or limited liability company that is nor shown as a Named Insured in the Policy Declarations.

*Please Note CGL does not stand for Comprehensive General Liability, the term Comprehensive does bot appear in or apply to Commercial General Liability form. If you are an attorney or a person responsible for creating insurance requirements please omit the phrase “”Comprehensive General Liability”” from your contract requirements as they are not a part of insurance terminology.“