Additional Insured Endorsements Effectively Transferred the Risk of Bodily Injury to The Sub-Contractor’s Insurer

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Starr Indemnity (“Starr”) sued seeking a declaratory judgment that Defendant Excelsior is obligated to indemnify parties to an underlying personal injury lawsuit (the “Underlying Action”). In Starr v. Excelsior, 19 Civ. 3747 (KPF), United States District Court Southern District Of New York (February 1, 2021) the USDC resolved the dispute applying the contracts as written

ZALMA OPINION

Construction contracts usually contain risk transfer devices like requiring all subcontractors to make the general contractor and the owner additional insureds on a CGL policy as well as requiring indemnification by the construction contract. When the risk is transferred the entire risk is moved to the sub-contractor or its insurer. In this case the two insurers protected the insured and settled the underlying action and applying their joint arguments and then filed a declaratory relief action to determine who owed what to whom.