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ARTICLE · 25 NOVEMBER 2019

When A Contractor Fails To Name A Property Owner As An Additional Insured

With winter weather on the horizon, 'tis the season for slips and falls. To keep visitors safe, many property owners will contract out their winter maintenance this year.

CanadaInsurance

With winter weather on the horizon, 'tis the season for slips and falls. To keep visitors safe, many property owners will contract out their winter maintenance this year. A standard obligation imposed on contractors under these winter maintenance contracts is the requirement to obtain comprehensive general liability insurance naming the property owner as an additional insured. But what happens if the contractor fails to name the property owner as an additional insured?

Duty to defend

An insurer is required to defend an insured against any claim where the facts alleged in the pleadings, if proven to be true, would require the insurer to indemnify the additional insured for the claim.[1] This is known as the duty to defend. It entails the insurer paying for and instructing legal counsel to defend a claim brought against its insured by a third party. Where a contractor has not named a property owner as an additional insured to the policy, the insurer does not have a

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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances. Specific Questions relating to this article should be addressed directly to the author.

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