Form IL 00 09: Additional Insured - (Engineers, Architects Or Surveyors)
1. What the form is
The IL 00 09 is an endorsement used with a Commercial General Liability (CGL) policy to add engineers, architects, or surveyors as additional insureds. Its primary purpose is to provide these professionals with liability coverage stemming from their supervisory role on a project when they are hired by the named insured (the policyholder). The coverage is specifically for liability arising out of the named insured's work or premises, not the professional liability of the engineers, architects, or surveyors themselves. This means that if a claim arises due to the named insured's negligence or operations, and the engineer, architect, or surveyor is also named in the suit due to their supervisory capacity, this endorsement can offer them protection under the named insured's CGL policy. It's important to note that the endorsement explicitly excludes coverage for professional services rendered (or not rendered) by the additional insured, such as preparing or approving maps, shop drawings, or conducting supervisory or inspection activities.
2. Classes of business it applies to
This endorsement is most commonly used in the construction industry. Any business that hires engineers, architects, or surveyors for a project and is contractually obligated to provide them with additional insured status would utilize this form. Real-world examples include:
- A general contractor hiring an architectural firm to oversee a building project. The general contractor might add the architectural firm to its CGL policy using the IL 00 09.
- A developer engaging a surveying company to map a parcel of land for a new housing development.
- A manufacturing company hiring an engineering firm to supervise the installation of new industrial equipment.
Essentially, any scenario where the named insured is performing work and an engineer, architect, or surveyor has a supervisory or oversight role related to that work could warrant the use of this endorsement.
3. Special considerations
There are several important points to consider when using the IL 00 09:
- Exclusion of Professional Liability: This is a critical limitation. The endorsement specifically excludes coverage for errors or omissions in the professional services provided by the engineer, architect, or surveyor. For their professional mistakes, these individuals or firms need their own Professional Liability (Errors & Omissions) insurance. For example, if a building collapses due to a design flaw by the architect, the IL 00 09 on the contractor's policy would not cover the architect's liability for that design flaw. However, if a visitor is injured on the construction site due to the contractor's unsafe site conditions, and the architect is sued for inadequate supervision of site safety (related to the contractor's work), the IL 00 09 might provide defense and indemnification.
- "Arising Out Of" Your Work: The coverage for the additional insured is typically limited to liability "arising out of" the named insured's ongoing operations or premises. The interpretation of "arising out of" can vary by jurisdiction, but generally implies a causal connection.
- Contractual Requirements: Often, the requirement to add these professionals as additional insureds stems from a written contract between the named insured and the engineer, architect, or surveyor. The endorsement may state that if coverage is required by contract, the insurance afforded will not be broader than what is contractually required.
- Supervisory Role Focus: The intent is to cover the additional insured for their vicarious liability stemming from the named insured's actions, primarily in their capacity of overseeing the named insured's work.
- Other Insurance: The endorsement may specify how it interacts with other insurance policies the additional insured might have. It's common for this coverage to be primary for the additional insured with respect to the named insured's operations.
4. Key information for agents and underwriters
Agents and underwriters should pay close attention to the following when dealing with the IL 00 09:
- Risk Assessment: The primary risk remains with the named insured's operations. However, adding an additional insured can potentially increase the exposure, especially if the supervisory role of the engineer, architect, or surveyor is extensive or involves high-risk projects. Underwriters will consider the nature of the named insured's work and the specific project involved.
- Pricing: Some insurers may apply a nominal charge for adding this endorsement, while others might include it at no additional charge, particularly if the underlying risk of the named insured is already well-understood and priced.
- Coverage Gaps: It is crucial for agents to explain the professional liability exclusion to both the named insured and the additional insured. The engineer, architect, or surveyor must understand that this endorsement does not replace their own E&O coverage.
- Underwriting Guidelines: Underwriters will review the contractual agreements requiring the additional insured status. They will also assess the qualifications and experience of the engineers, architects, or surveyors being added, though the primary focus remains on the named insured's operations. They will want to ensure the named insured has a good safety record and sound operational practices.
- Clarity of Roles: The clearer the distinction between the named insured's work and the professional services of the additional insured, the easier it is to determine coverage application in the event of a claim. Ambiguity can lead to disputes.
- Completed Operations: It's important to determine if the coverage for the additional insured extends to completed operations, as some additional insured endorsements are limited to ongoing operations. The IL 00 09 typically provides coverage for "bodily injury", "property damage" or "personal and advertising injury" caused by the named insured's acts or omissions in the performance of their ongoing operations or in connection with their premises.