ISO Changes Workshop GREGORY D PODOLAK ESQ JEFFREY

ISO Changes Workshop GREGORY D. PODOLAK, ESQ. JEFFREY J. VITA, ESQ. Saxe Doernberger & Vita, P. C. October 24, 2014

ISO 2013 Changes and Critical Additional Insured Issues • Contractual Privity • Anti-Additional Insured? • Minimum Limits • Scope of Coverage • Priority of Coverage • Cyber Risk • Professional Services

(De) Evolution of AI Coverage

ISO AI Coverage: 1985 - 2013 Ø 1985 Ø 10 simple words: only with respect to liability arising out of "your work" Ø A lot of litigation: Vicarious only? Completed Ops? Primary/Non. Contributory? Ø 1993 Ø What happened to completed operations? Ø 1998 (CG 0001) Ø “other insurance” amended to address PNC – but only for premises/operations

ISO AI Coverage: 1985 - 2013 Ø 2001 Ø Now we need two endorsements? (CG 2010 AND CG 2037) Ø 2004 Ø “arising out of” becomes “caused in whole or in part” Ø The “action over” problem Ø “other insurance” (CG 0001) amended to address PNC for completed ops Ø 2013 Ø Contract terms impact scope and breadth of coverage Ø New endorsement for primary/non-contributory (CG 2001 04 13)

Additional Insured Issues Eliminating Contractual Privity Disputes D O GO NEW: CG 20 38 04 13

Additional Insured Issues Contractual Privity Required CG 20 33 07 04

Additional Insured Issues Work Performed For CG 20 37 07 04

Additional Insured Issues Work Performed For CG 20 10 07 04

Additional Insured Issues Eliminating Contractual Privity Disputes D O GO NEW: CG 20 38 04 13

Additional Insured Endorsements Conformity with Law L A R T NEU NEW: All 2013 AI Forms

Anti-Indemnity Statutes Apply to AI Insurance

Additional Insured Endorsements Increased Interdependence GC/CM Trade Contract Subcontractor Sub’s Policy Sub’s Insurance Carrier

Additional Insured Endorsements Limits: No more than contract provides ? D BA NEW: Those required by contract, or those shown on the Declarations page, whichever is less.

Additional Insured Issues Limits: No more than contract provides Policy Limits Contract Requirements $10 Million $5 Million $1 Million GAP Million $1$1 Million $2 Million

Additional Insured Coverage Limits: No more than contract provides ? N O I OLUT S Those required by contract, or those New ISO Form: proscribed on the Declarations page, whichever is less. New Contract: $1 Million per occurrence, or the full per occurrence limits of the policy, whichever is greater.

Additional Insured Issues Scopes of Coverage D A B NEW: All 2013 AI Forms

Additional Insured Issues Scopes of Coverage ? N O I LUT SO New ISO Form: New Contract: The insurance afforded to such additional insured will not be broader than that which you are required by the contract or agreement to provide for such additional insured. “In the event that any policy provided in compliance with the [Exhibit] states that the insurance afforded to an additional insured will not be broader than that required by contract, or words of similar meaning, [the Parties] agree that nothing in this [Agreement] is intended to restrict or limit the breadth of such insurance. ”

“Other Insurance” Primary/Non-Contributory D O O G NEW: GL 20 02 04 13

Priority of Coverage Owner’s Corporate Excess Insurance GC’s Excess Insurance AI End o rsem ent (Owner’s AI Excess Insurance) Owner’s Corporate Primary Insurance AI Owner t men GC’s Primary Insurance (Owner’s AI Carrier) se or End Promise to Indemnify Promise to Procure Insurance General Contractor (“GC”)

“Insured Contract” De-Evolution? D O O G CG 00 01 12 07

“Insured Contract” Insured Must Have Caused Injury BAD CG 24 26 07 04

“Insured Contract” Limited by Anti-Indemnity Statutes E S R WO CG 24 26 04 13

CGL: Electronic Data Liability

CGL: PPI/Data Exclusion

Professional Services Exclusion CG 22 79 07 98

Professional Services Exclusion CG 22 80 07 98

Professional Services Exclusion L A R T U NE All ISO Forms With PL Exclusion Language

“Other Insurance” Language Clean-Up D O O G NEW: “Any other primary insurance available to you covering liability for damages arising out of the premises of operations, or the products and completed operations, for which you have been added as an AI by attachment of an endorsement. ”

Questions? Gregory D. Podolak, Esq. GDP@sdvlaw. com 203 -287 -2114 Jeffrey J. Vita, Esq. JJV@sdvlaw. com 203 -287 -2103