Federal Court Highlights the Strategic Value of Additional Insured Coverage

Short summary

A Maryland federal court ruled that an equipment lessor qualified as an additional insured under a lessee's liability policy and was entitled to primary defense in a construction accident claim. The decision rejected insurer arguments limiting coverage to vicarious liability, establishing that additional insured status can apply even where the policyholder's own conduct is at issue. Policyholders should proactively identify additional insured coverage in contracts, obtain actual policy language, and promptly tender claims to all potential carriers.

• •Court held equipment lessor was additional insured entitled to primary defense coverage
• •Additional insured coverage extends beyond vicarious liability to shared-fault scenarios
• •Policyholders should systematically identify and pursue all available insurance coverage through contracts and endorsements

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