July, 13 2021
On July 13, 2021, Jon Kranz presented a Continuing Legal Education (CLE) course titled “AI Coverage - The Soundtrack,” which addressed a “playlist” of issues relating to additional insured (“AI”) coverage. The presentation utilized song titles from various musical genres to highlight issues that typically arise when a party is seeking AI coverage, especially in the construction context. Mr. Kranz explained the sometimes complicated interplay between the terms of the policy and the underlying contract(s). He then discussed language from a sample AI clause including often-litigated phrases such as “with whom you agree,” “written contract or agreement,” “executed before the injury or damage,” “arising out of” and “caused in whole or in part by.” Mr. Kranz addressed how courts in New York, California and other jurisdictions interpret these and other phrases in deciding whether a policy affords AI coverage. He also discussed how these issues can affect an insurer’s duty to defend and duty to indemnify and the circumstances under which a policy provides AI coverage on a primary and/or non-contributory basis. He then explained the importance of issuing tenders for AI coverage and highlighted potential pitfalls resulting from untimely and/or incomplete tenders. Finally, Mr. Kranz explained New York Insurance Law Section 3420(d), and particularly its disclaimer requirements, in relation to responding to a request for AI coverage.