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What exactly does it mean when the coop is named as additional insured on a certificate of insurance for a contractor doing work on a shareholders apartment?
Our board has a situation where work being performed in an apartment caused damaged to another apartments walls and floors.
The shareholder of the damaged apartment feels that because the coop is named as additional insured it should cover the balance of the damages that their coop owners policy does not cover because it is an additional insured and then look to recover from the contractor.
Hi, Jay,
I think what it generally means is that the additionally insured party (in this case, the co-op) is protected against damage caused by the insuree (in this case, the contractor), and has the right to collect financial reimbursement from him.
It doesn't mean that the co-op pays for the contractor's damages.
AdC is correct that the aggrieved shareholders need to contact their own insurance company to help settle this. In short, if the contractor caused the damage, the contractor must pay to repair it. The shareholders of the damaged apartment should not have to pay (although they may have to foot the bill until they are reimbursed).
(P.S. Remind that shareholder what would happen to his/her maintenance if the co-op had to pay for every bit of damage caused by a contractor but not covered by the contractor's insurance. His/her maintenance fee would go up significantly every year just to cover the plumber's, electrician's, painter's, floor sander's inadequate insurance!)
It is my understanding that the co op or condo is named as additional insured. Our building also insists on the apartment that the work is being done to (or moving in or out of) is also named as additionally insured. This seems to work.
Pg
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Go to your insurance agent with the problem on hand. YOurs is an "AFTER THE FACT" problem that requires active intervention from insurnace and legal counsel.
Finding out what is additional insureds should have been clarified when the alteration policy was redacted. Now, is time to PROTECT and use the means in place so that the "additional insured" clause be enforced if shareholders are to claim from the CONTRACTOR'S insurance or the co-op is to do it on behalf of all the damages that were caused by the contractor.
AdC
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