It said that the renter, who did not cause the loss, was
insured under a policy from Depositors Insurance Company owned by Karavan Trailers, Inc., who rented a motor home to Craig Dollansky.
In other words, this would expressly imply that the
Insureds must, at first, incur the entire Expenditure of the Replacement/Re-Instatement of the claimed Machinery/Property from their own sources and only then can prefer their Claim on the Underwriters for Indemnification under the Re-Instatement Clause of the Policy, by providing Documentary Evidences of the Replaced/Re-Instated Machinery/Property.
Answer: You are correct that she is not an
insured by definition.
But regardless of the length or format of an additional
insured endorsement, the
insured and the insurer should realize that a decision to make some entity an additional
insured on a general liability policy should not be dismissed as just a simple business decision that has no real consequences.
Declarations are required to be made on monthly basis and this must be ensured that the Declarations of the expired month must also be made within the 30-days of the next Calendar month, duly Signed/Stamped by the
Insureds and / or any of the irformally authorized Executive.
In contrast, an Additional
Insured is a third party with whom the Named
Insured has a close business relationship.
When in doubt,
insureds should give notice as quickly as possible, and should not assume that the insurer has constructive notice, that deductibles need to be met or that a showing of prejudice is required.
correct that the
insured does not have coverage for the
SIRs and deductibles are similar in that both require the
insured to bear financial responsibility for a portion of a loss and, in this regard, represent an exposure that is not covered by insurance.
It is a common insurance requirement to mandate that certain parties be named an "additional
insured." The status of an "additional
insured" is conditional and not absolute.
Courts that have addressed this issue have consistently ruled that insurers have an obligation to defend and indemnify their insolvent
insureds under their policies to the extent that covered claims exceed the
insured's SIR under the policy irrespective of whether the
insured has actually paid the SIR.
limited liability company, you are an
insured. Your members are also
insureds, but only with respect to the conduct of your business.
