Does Extending Additional Insured Status Reduce Protection Available To The Named Insured?

Commercial general liability (CGL) claims involve three parties: 1) the insured(s); 2) the insurer; and 3) the injured. CGL coverage part “A” is designed to protect the insured(s) against the financial consequences of “bodily injury” or “property damage” claims made by an injured party.

Four classifications of “Insured” are contained in or endorsed to the commercial general liability policy. Protection extended from the CGL to each class or level of insured varies based on relationship and responsibility as detailed in the following paragraphs. The four “insured” classifications are:

  1. Named Insureds (first named and additional named) – considered “You;”
  2. Extended Insureds (equal to a “You”);
  3. Automatic Insureds; and/or
  4. Additional Insureds.

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