"Additional Insured" Counseled To Read The Policy

An Illinois General Contractor learned a hard lesson the other day; the case is Vivify Constr., LLC v. Nautilus Ins. Co., 2017 IL App (1st) 170192.

The General Contractor, Vivify Construction, subcontracted part of the job to Victoria. Naturally wishing to protect itself from claims arising from Victoria's work, Vivify required Victoria to maintain liability insurance, and to include Vivify "as an additional insured for claims caused in whole or in part by Victoria's negligent acts or omissions. . . ." Id. (brackets omitted).

Victoria did indeed include Vivify as an Additional Insured. Unfortunately for Vivify, however, Victoria's policy contained an exclusion for claims by employees of "any insured's contractors, subcontractors, or independent contractors. . . ." The trial court found, and the appellate court agreed, that this language unambiguously applied: Vivify was an "insured"; Victoria was a Vivify "contractor"; and the injured worker was an "employee" of