Certificate of Insurance, Completed Operations, and the Collapsed Roof
Riverside General Contractors hired Summit Roofing to replace a warehouse roof under a contract requiring Summit to name Riverside as an additional insured on its commercial general liability policy, including products-completed operations, primary and noncontributory, with a waiver of subrogation, $1 million per occurrence and $2 million aggregate. The certificate of insurance listed Riverside as additional insured, but the attached endorsement added Riverside only for “ongoing operations.” Three months after final acceptance, a section of the new roof collapsed, injuring a delivery driver and damaging $300,000 of Riverside's stored inventory. The driver sues Riverside and Summit. Summit's CGL insurer agrees to defend Summit but denies additional-insured coverage for Riverside, citing the completed-operations exclusion in the endorsement. Riverside's own CGL insurer tenders a defense under a reservation of rights and argues Summit's policy is primary. Riverside's project manager says, “We have the certificate; that proves coverage.”
1. Is Riverside an additional insured under Summit's policy? Address the certificate, endorsement, and completed-operations issue.
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The certificate is evidence of insurance, not the insurance contract, and it usually states that it confers no coverage. The controlling document is the endorsement. Here the endorsement adds Riverside only for ongoing operations. The collapse occurred three months after final acceptance, so the claim arises out of completed operations, not ongoing roofing work. That means Riverside is probably not an additional insured for this loss under Summit's policy. The contract's promise to include products-completed operations does not amend the policy; it gives Riverside a breach-of-contract claim against Summit, but not direct coverage from Summit's insurer. The project manager's belief that the certificate “proves coverage” is exactly the trap: certificates are routinely issued without the required endorsement. Riverside should compare the contract requirement, the endorsement form, and the policy's completed-operations definition before accepting the denial, but the initial coverage position is strong for Summit's insurer.
2. How should Summit's and Riverside's insurers allocate defense and indemnity, including primary/noncontributory and waiver of subrogation?
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If Riverside is not an additional insured for completed operations, Summit's insurer owes a defense to Summit only. Riverside's own CGL insurer must defend Riverside because the driver's suit alleges bodily injury and property damage arising from Riverside's premises or operations. The “primary and noncontributory” requirement would matter only if the endorsement actually gave Riverside additional-insured status; without that status, Riverside's policy is not excess to Summit's. The waiver of subrogation is separate. If Summit's policy contains a valid waiver endorsing the contract, Summit's insurer cannot subrogate against Riverside for amounts it pays on Summit's behalf. It does not necessarily prevent Riverside's insurer from subrogating against Summit. Riverside should tender the claim to both carriers, demand a written coverage position, and preserve the contract and endorsement. It should not let the certificate or the contract's indemnity clause substitute for a coverage analysis.
3. What risk-transfer steps should Riverside take before the next roof replacement?
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Riverside should require the actual additional-insured endorsement, not just a certificate, and review the wording before work begins. The endorsement must include products-completed operations, primary and noncontributory language, and a waiver of subrogation if those are contract requirements. Riverside should confirm the limits, aggregate, and self-insured retention, and check whether the subcontractor's policy covers the exact scope, including any hot work or crane work. It should calendar renewal and endorsement verification, require notice of cancellation, and obtain an indemnity agreement that is enforceable in the relevant state. At project closeout, Riverside should collect the final endorsement and completed-operations confirmation. If the subcontractor cannot provide the coverage, Riverside should require a different risk-transfer mechanism, such as an owner-controlled insurance program or a higher contract price. The certificate alone is not enough; the endorsement is the coverage.