Introduction:
When it comes to construction insurance in New York, the ACORD 25 certificate of liability insurance form has been the go-to document for summarizing coverage information. However, its limitations in addressing exclusions and endorsements have become evident. To bridge this gap, ACORD introduced the ACORD 855—an addendum specifically tailored for New York construction projects. In this article, we will explore the importance of ACORD 855 in evaluating coverage and addressing common limitations and exclusions.
Understanding the Limitations of ACORD 25:
While the ACORD 25 form provides a helpful summary of policy details, it lacks crucial information about exclusions and coverage limitations. It outlines policy sources, insured parties, policy types, and effective dates but fails to address critical factors that can significantly impact coverage.
Introducing the ACORD 855 – New York Construction Certificate of Liability Insurance Addendum:
To address these limitations, the ACORD 855 was developed as an addendum to the ACORD 25 form. It allows the insured’s designated representative, typically an insurance broker, to identify and address common exclusions and endorsements specific to New York construction projects. The ACORD 855 focuses on limitations and denials of coverage for losses occurring in specific locations, above height limits, below grade, or due to subcontractor work.
Enhancing Coverage Evaluation:
One of the key benefits of the ACORD 855 is its ability to highlight potential coverage gaps. It helps evaluate crucial aspects such as employers’ liability and contractual liability coverage within a CGL policy. Additionally, the ACORD 855 assists in clarifying additional insured coverage by identifying the form number of the additional insured endorsement attached to the CGL policy. This information is invaluable as the scope of additional coverage can vary based on the specific additional insured endorsement form used.
Analyzing Policies and Seeking Expertise:
While the ACORD 855 serves as a useful tool for identifying potential limitations and gaps in coverage, it is important to emphasize that it does not replace a comprehensive policy review. Engaging the expertise of an insurance attorney is highly recommended to conduct a thorough evaluation of the entire CGL insurance policy, including all exclusions and endorsements. An attorney can provide insights into the complete terms and conditions, ensuring a comprehensive understanding of the coverage offered.
Policy Terms Take Precedence:
It is crucial to keep in mind that the ACORD 855, similar to the ACORD 25, does not form part of the insurance policy itself. In the event of any discrepancies between the terms of the ACORD form and the actual policy, the terms of the policy will always prevail.
Conclusion:
The introduction of the ACORD 855 addendum has significantly enhanced the evaluation of coverage for construction projects in New York. By addressing common limitations and exclusions, the ACORD 855 helps identify potential gaps and ensures a more comprehensive understanding of coverage. However, it is essential to involve an insurance attorney to conduct a thorough policy review to fully comprehend the terms and conditions. By combining the use of the ACORD 855 with expert analysis, construction professionals can confidently evaluate their coverage and make informed decisions for New York construction projects.
Click here for the New York Construction Certificate of Liability Insurance Addendum form.
