There for You? Confirm Your “Additional Insured” Status as Required by Business Contracts and Operations Manual

By: Sheila Raftery Wiggins

Business contracts – like franchise agreements and operational manuals – may require that another entity is listed as an “additional insured” on an insurance policy. Failure to comply may: (i) violate the terms of a contract and (ii) increase your exposure to risk. Minimize risk by: (1) Confirming status as an “additional insured” on your and your business partner’s policies; (2) Include “legal hot topics” covered by the policy by speaking with your broker and lawyers regarding legal trends so you are covered against the “hot topic” lawsuits/claims in your industry; and (3) Read business contracts and operations manuals, which may permit you to change coverage. This insurance coverage “check-up” will help confirm that your insurance will be there for you.

Sheila Raftery Wiggins, of the Newark office, handles matters involving complex commercial disputes, insurance defense, coverage disputes, financial fraud, and attorney ethics.