General Contractors Beware: Coverage Under Additional-Insured Endorsement To Subcontractor’s CGL Policy May End When Subcontractor’s Work Is Complete

Within the past four months, two courts interpreting Mississippi law have held that an additional-insured endorsement to a subcontractor's commercial general liability (CGL) insurance policy did not obligate the insurer to defend and/or indemnify a general contractor additional insured for liability arising after the subcontractor completed its work. See Carl E. Woodward, LLC v. Acceptance Indem. Ins. Co., --- F.3d ----, 2014 WL 535726 (5th Cir. February 11, 2014) (the Fifth Circuit is currently considering a petition for rehearing filed by Woodward); Noble v. Wellington Assocs., Inc., --- So.3d ----, 2013 WL 6067991 (Miss. Ct. App. Nov. 19, 2013) (the Mississippi Court of Appeals is currently considering a petition for rehearing filed by Noble). These holdings may impact any general contractor's reliance on insurance coverage under an additional-insured endorsement to a subcontractor's CGL policy, and may require a more proactive insurance approach before a project