2 Who We Are Ranked among the largest specialty insurance brokers in the United States. 400 insurance professionals in 11 offices. Colemont has been independent since it was founded in Colemont launched an international expansion in 2005 and now nearly 300 employees overseas with offices in 15 countries. Premium Volume Growth

Why Were Different Totally Independent: Colemont was founded on the premise that the insurance marketplace would always need – even demand – a truly independent wholesale specialty broker. Independent in that we were not affiliated with a U.S. retail operation. Passion for Service: We understand that quick reaction times and a work product that is comprehensively responsive to your clients needs make you look good; and when you look good, we look good. Product and Coverage Expertise: Colemonts brokers are routinely asked to find just the right answer to difficult or even one-of-a-kind coverage needs. Generally, each of our brokers specializes in a particular product area – e.g. property, professional liability, etc. – and are well-versed in the intricacies and nuances different coverage parts provide. By virtue of being a national firm, brokers are encouraged to reach out to other Colemont brokers to question and collaborate. Also, many of our brokers have prior retail and/or underwriting experience, which allows them to better communicate with their clients. Unmatched Market Access : Colemonts brokers have access to more than 400 markets – domestically and internationally. More choices mean more options for your insured. Culture : Integrity, urgency, creativity, service, teamwork, and intensity. Proprietary Market Intelligence Systems: Allows us to quickly identify the best markets meeting the needs of your customers.

Your Colemont Brokers Gary Grindle, CPCU, CRIS, ASLI Products: Casualty. Property & Inland/Ocean Marine Specialties: Construction, Manufacturing & International Philip Chester Products: Financial Services Specialties: Medical Malpractice Mike O'Brien Products: Financial Services CALL: (877)

Jeffrey J. Vita is a founding partner of Saxe Doernberger & Vita, P.C., a Connecticut-based firm dedicated to the representation of policyholders in insurance coverage disputes. In the last several years, Mr. Vita has focused his practice on the representation of business policyholders in insurance coverage matters implicating coverage under comprehensive general liability, directors & officers, professional liability, commercial property, and health insurance related policies. Mr. Vita has handled coverage cases related to construction, professional malpractice, healthcare, business interruption, employment, disability, and environmental claims. He has successfully tried numerous court trials and commercial arbitrations. Currently, Mr. Vita is representing healthcare providers in connection with disputes arising out of the provider/payer relationship against several large HMOs. He also has authored numerous articles on insurance coverage issues and has lectured frequently on a variety of insurance coverage topics including additional insured issues, bad faith claims, allocation of coverage, and the duty to defend. Tobias J. Cushing represents clients in insurance coverage disputes involving commercial general liability, commercial property, directors & officers and professional liability insurance. In particular, he has handled cases involving environmental liability, construction defects and healthcare provider reimbursement disputes. Mr. Cushing has also consulted with a number of clients to improve their existing insurance programs and has represented them in renewal negotiations with insurance carriers. Since joining SDV he has argued various motions, tried cases and represented clients in a number of settlement negotiations and commercial transactions. During law school he worked at the Connecticut Attorney General's Office and was an extern in the Federal District Court of Connecticut and the New Haven Superior Court. Mr. Cushing's LLM in Insurance Law from the University of Connecticut School of Law has provided him with a broad based knowledge in: Insurance Regulation, Insurance Finance, Property Insurance, Liability Insurance, Insurance Litigation, Life and Health Insurance, and Reinsurance.

6 Jeffrey J. Vita and Edwin L. Doernberger Saxe, Doernberger & Vita, P.C. Coverage for Contractual Risk Transfer and Additional Insured Issues 9/10/08Harrisburg, PA Jeffrey J. Vita Tobias J. Cushing

Outline Introduction Contractual Indemnity Additional Insured Coverage Co-Insurance Issues re: AI Coverage Certificates of Insurance Waiver of Subrogation Case Studies Discussion

Risk Transfer

Additional Insured Coverage 3 rd Party Liability Insurance CGL Professional Pollution 1 st Party Insurance Subcontractor Indemnity Subcontractor Default Insurance Builders Risk Contractual Rights Risk Transfer Commercial Property

Effect of Indemnity Provisions May shift payment of defense to sub/indemnitor May shift indemnification to sub/indemnitor

Risk Allocation through Contract GC/CM contract, subcontract, side agreement Specific paragraphs for indemnity Hidden provisions throughout contract Contract Language Policy Language Insured Contract

Contract Language …the Subcontractor agrees to indemnify and save [GC] harmless of all loss, cost, expense, liability, damage or injury, including legal fees and disbursements … Risk Allocation Policy Language Insured Contract

Policy Language This exclusion does not apply to liability for damages: (1) Assumed in a contract or agreement that is an insured contract, provided the bodily injury or property damage occurs subsequent to the execution of the contract or agreement; or (2) That the insured would have in the absence of the contract or agreement Risk Allocation Contract Language Insured Contract

That part of any other contract or agreement…under which you assume the tort liability of another party to pay for bodily injury or property damage to a third person Risk Allocation Contract Language Policy Language

Indemnity: What is Covered? Liability Not CoveredCovered Indemnity

Contractual Indemnity v. AI Coverage AI coverage and indemnity operate independently Indemnity covered as contractual liability AI coverage determined by policy and AI endorsement AI coverage not limited by states anti- indemnity laws

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Benefits of AI Status Supplement to contractual indemnity Protects GC from own negligence and vicarious liability Prohibits subrogation Avoids impact to GCs loss history

AI Issues Who is an Insured? Blanket Endorsement Specifically Named Notice to Insurer

Evolution of the AI Endorsement CG Arising out of CG Limits coverage to ongoing operations CG Excludes coverage for completed operations CG Replaces arising out of with caused in whole or in part. Excludes completed operations CG Reinstates completed operations coverage

CG but only with respect to liability arising out of your work for that insured by or for you

CG but only with respect to liability arising out of your ongoing operations performed for that insured.

CG This insurance does not apply to bodily injury or property damage occurring after: (1) All work, including materials, parts or equipment furnished in connection with such work, on the project (other than service, maintenance or repairs) to be performed by or on behalf of the additional insured(s) at the site of the covered operations has been completed;

CG but only with respect to liability arising out of your work at the location designated and described in the schedule of this endorsement performed for that insured and included in the products-completed operations hazard.

Section II – Who Is an Insured is amended to include as an additional insured the person(s) or organization(s) shown in the Schedule, but only with respect to liability for bodily injury, property damage… caused, in whole or in part, by: 1. Your acts or omissions; or 2. The acts or omissions of those acting on your behalf; In the performance of your ongoing operations for the additional insured(s) at the location(s) at This insurance does not apply to bodily injury or property damage occurring after: 1. All work, including materials, parts or equipment furnished in connection with such work, on the project (other than service, maintenance or repairs) to be performed by or on behalf of the additional insured(s) at the location of the covered operations has been completed; CG

As AI, GC is entitled to same protection as named insured Make sure contract and policy are clear that subs insurance (primary and excess) will act as primary with GCs insurance as excess AI Insurance - Primary v. Excess

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Co-Insurance Issues Other Insurance Horizontal v. Vertical exhaustion Horizontal is more common Vertical exhaustion a/k/a targeted tender

Horizontal v. Vertical Exhaustion-Example

Trial Court Apportionment of AI Coverage for Bovis QBE $1,000,000 J&A Primary UNITED $5,000,000 J&A Umbrella LIBERTY $1,000,000 Stonewall Primary WESTCHESTER $10,000,000 Stonewall Umbrella ILLINOIS $1,000,000 BOVIS PRIMARY

Horizontal v. Vertical Exhaustion-Example Appellate Court Apportionment of AI Coverage for Bovis Sharing pro rata

Ongoing Operations Ongoing operations language in endorsement does not limit AI coverage to losses that occurred while contractor was onsite or while work was in progress See Valley Ins. Co. v. Wellington Cheswick, 2006 WL (W.D. Wash.) (in property damage claim for alleged defective construction of condominium, while property damage may not have occurred during ongoing operations, the alleged liability did)

Completed Operations Completed Operations coverage addresses continuing liability for an additional insured from the named insureds work after that work is completed

Certificates of Insurance Do not rely on certificate of insurance as evidence that you are an AI Obtain all policies and endorsements at start of each project from the subcontractors including all renewals At a minimum obtain declaration page, AI endorsement and certificate of insurance

Subrogation Subrogation allows a party who has paid a loss or debt on the part of another to succeed to the rights of that other party to pursue recovery from a third party who was responsible for causing the loss The right to subrogation can be waived prior to loss

Waiver of Subrogation Allocate the risk of property damage and do not permit reallocation through subrogation Contractually waive subrogation and/or Include party and all of its subcontractors as insureds since insurers can not subrogate against their own insureds

Texas High School

Florida Condominium

Connecticut Hospital

New York Synagogue