In many types of businesses, it is customary for contracts to require that the upstream parties in the business relationship be made “Additional Insureds” under the downstream parties’ policies of insurance. This article explores some of the hidden pitfalls posed by the specific language of the numerous versions of “Additional Insured” endorsements and what impact “Additional Insured” status has on the availability of coverage under primary, excess and other policies (the “exhaustion” of coverage issue).
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