1. Forms
2. DL
3. DL-24-10

What the form is

The DL 24 10 Additional Insured endorsement is designed for use with Dwelling policies. Its primary purpose is to extend Personal Liability (Coverage L) and Medical Payments to Others (Coverage M) to a person or organization other than the named insured. This coverage applies specifically to the "insured location" detailed in the endorsement schedule and is for bodily injury or property damage arising from the ownership, maintenance, or use of the "residence premises". The endorsement also mandates that the additional insured be informed in writing in the event of policy cancellation or nonrenewal.

Classes of business it applies to

This endorsement is typically used in conjunction with personal lines Dwelling Fire policies (like DP 00 01, DP 00 03). Common scenarios for its use include:

• Non-owner occupied dwellings: When the property owner (named insured) wants to extend liability protection to another party with an insurable interest, such as a co-owner not residing at the premises, or a trust that legally owns the property. For example, if siblings jointly own a rental property but only one is listed as the named insured, the other sibling could be added as an additional insured using this form.
• Properties owned by entities: If a dwelling is owned by a trust, estate, Limited Liability Company (LLC), or partnership, this form can be used to specifically name an individual (like a trustee or partner) for liability coverage related to that dwelling.

Special considerations

• Employee Exclusion: A significant limitation is that the endorsement excludes coverage for "bodily injury" to an "employee" or "residence employee" of the additional insured (or a temporary substitute for such an employee) if the injury arises out of and in the course of their employment by the additional insured. For instance, if an additional insured property manager has their own employee injured while working at the insured location, this endorsement would not provide coverage for that employee's injury under the named insured's policy.
• Scheduled Information: The form requires the name and address of the additional insured person or organization, their specific interest in the property, and the location to be clearly listed in the schedule. Accuracy here is crucial.
• Notification of Cancellation/Nonrenewal: The additional insured has a right to be notified in writing if the insurer decides to cancel or not renew the policy.
• Scope of Coverage: It's important to remember this endorsement provides liability coverage, not property coverage, for the additional insured.

Key information for agents and underwriters

• Risk Assessment: Underwriters should carefully evaluate the relationship between the named insured and the proposed additional insured to understand any potential increase in liability exposure. The nature of the additional insured's interest (e.g., co-owner, trustee) is important.
• Clear Identification: Agents must ensure that the additional insured is correctly and fully identified in the schedule, along with their specific interest and the relevant insured location. Ambiguity can lead to coverage disputes.
• Underlying Limits: Confirm that the limits for Coverage L (Personal Liability) and Coverage M (Medical Payments) are adequate to cover the potential exposure of both the named insured and the additional insured(s).
• Potential Coverage Gaps: The employee exclusion is a key point to discuss with the insured and the additional insured, especially if the additional insured might have employees present or working at the insured location.
• Premium Considerations: While often nominal, any premium associated with adding an additional insured should be determined according to the insurer's rating rules.
• Part of ISO Program: This is a standard Insurance Services Office (ISO) form used within the Dwelling Policy program.