“Separation of Insureds” – Contract Tip of the Week

Q: My client requested that my workers compensation policy include a “separation of insureds” clause. What does this mean? Is this available? Is there an additional charge?

A: A separation of insureds provision addresses the insurer’s obligations when multiple parties are named as additional insureds. Since Workers Compensation policies do not allow you to name clients or other unrelated entities as additional insureds, the provision is neither applicable nor available under workers compensation insurance, even for an additional charge.

The Risk Specialty Group and RLI Design Professionals are pleased to feature our Contract Tip of the Week series. Each week, we’ll review a question submitted by a design firm relating to the subject of contracts. Keep in mind, though, that these discussions are general in nature and in making specific business decisions, it’s important to review your options with a knowledgeable attorney.