The court found that the construction manager was an additional insured under the contractor's policy. Turner Constr. Co. v. Navigators Ins. Co., 2015 N.Y. Misc. LEXIS 2704 (N.Y. Sup. Ct. July 23, 2015).
The owner hired two contractors, Enclos Corp. and Five Star Electric Corp. In their separate contracts with the owner, each contractor agreed to procure a CGL policy naming the owner and a person identified as the construction manager as additional insureds. Travelers was Enclos's insurer, and Navigators Insurance Company was Five Star's insurer.
Turner was hired to "provide pre-construction services and construction management services for the Project."
Plaintiff in the underlying suit, Edward Walls, was an Enclos employee who was injured at the job site. He sued Turner and others for injuries. Turner claimed it was an additional insured under Travelers' policy. Travelers argued Turner was not an additional insured because it was not named in the policy and was nowhere identified as the construction manager. Travelers further contended that Turner was not entitled to a defense because its costs in the underlying action did not equal the deductible in the Travelers' policy.
On Turner's motion for summary judgment, the court found that Turner was the construction manager and Enclos' promise in the contract with the project owner to provide additional insured coverage for the construction manager applied to Turner. Additional insured status was conferred under Travelers' policy for any entity that the insured was required by a written contract to name as an additional insured. Enclos's contract with the owner fulfilled this requirement. It did not matter that Turner was not named in the contract or policy. Therefore, Travelers had a duty to defend Turner.
The Travelers policy had a deductible of $150,000, and the Walls action costs had reached about $58,000 at the time the motion was filed. As an insured, the deductible applied to Turner. When the costs exceeded $150,000, Travelers was responsible for the costs of defending Turner in the Walls action.