An agency uses a master certificate holder format in its agency management system—meaning that at renewal, the team modifies a master COI, then attaches the holder information and additional forms as necessary. Since the agency provides coverage for construction risks, it’s important to include many additional insureds and per-project forms.

Recently, the principal noticed a group of COIs ready for mailing that checked both the policy aggregate and per-project boxes within the occurrence general liability section. When the principal asked the team why both boxes were checked, they explained that the carrier offered the Blanket Per Project form.

Because of this, they figured they would simply check both boxes and provide the actual Blanket Per Project endorsement for clients that require one, along with the following wording:

• When per-project limit wording is required: "X is included as additional insured with respect to the general liability, auto and umbrella policies as required by written contract per the attached. Coverage is primary. A waiver of subrogation is provided with respect to the general liability, auto, umbrella and workers comp policies as required by written contract per the attached. Umbrella if form following. Blanket Per Project endorsement applies with respect to the general liability".
• When per-project limit wording is not required: "X is included as additional insured with respect to the general liability as required by written contract per the attached endorsement."

Q: It seems like, by checking off the per-project box, we suggest the limits apply per project—even if we don’t provide the Blanket Per Project endorsement. Could an attorney use our words against us in court, and if so, what do you recommend we do moving forward?

A: First of all, I have a problem with the wording your team is using in the COIs. Never state that anything is done "as per a contract" or use similar wording—you can never be 100% certain that everything is exactly per contract. Plus, there’s no such thing as a Waiver of Subrogation endorsement, at least not in the ISO world. There’s a Waiver of Transfer of Rights of Recovery Against Others to Us endorsement, but the difference is more than semantic. The agent is referencing a form that does not exist, and the endorsement I mention above does more than just waive subrogation rights—it also waives contribution rights.

Second, remember that a COI is a snapshot of coverage as requested by the COI holder. It’s a representation of the coverage the carrier provides to the insured. COIs shouldn't be customized based on "who is asking for what" to show anything different than what the policy provides.

If every project is subject to a per-project aggregate, the COI should state that; if specific projects are endorsed with a per-project limit, the COI should state that, too. I realize I'm in complete disagreement with those who recommend not telling the COI holder about coverages they don't ask about, but to me, that’s a misrepresentation of the policy. Report on the COI all coverages provided.

I would need to see the Blanket Per Project endorsement, but it sounds like every project has its own aggregate—and if that is true, it doesn't matter what endorsements are attached or are not attached to the COI. The coverage is there and will be discovered by an attorney when they request a copy of the policy.

Whether a lawyer can twist your words is a question for the courts, but it sounds to me like it doesn't matter.

Chris Boggs is executive director of the Big “I” Virtual University.

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