Professional Liability / E&O - Additional Insured & Primary/Non-Contributory?

[krys89]

I'm an IT Consultant and I have a contract that says "In addition, Vendor’s insurance must be designated as primary and non-contributory to the insurance of *client*"

I'm good for my Commercial General Liability Insurance. For my E&O though, my broker is working through it, and I noticed there's a "Additional Insured Endorsement Primary and Non-Contributory" endorsement that was added today, where it names the client, specifically. Is this what I'm looking for?

The way I read my contract, I take it that my insurance should pay E&O claims (primary and non-contributory), not my clients. However the text of the endorsement seems broader than that:

_____________________________-

Person/Entity:

*client's name / address*

Insured shall include the person(s)/entity(ies) named in the endorsement

SCHEDULE, but only for the wrongful acts of the named entity or any

subsidiaries.

It is agreed that the insurance provided to the person(s)/entity(ies) listed

in the endorsement SCHEDULE shall be primary and non-contributory, but only

with respect to wrongful acts caused, in whole or in part, by:

• The named entity's or subsidiaries' acts or omissions; or
• The acts or omissions of those acting on the named entity's or

subsidiaries' behalf;

In the performance of your ongoing operations for the person(s)/entity(ies)

listed in the endorsement SCHEDULE.

__________________________________________________

Has my client became a "Additional Named Insured" versus simply an "Additional Insured"? Thanks a lot.

 

[rocki7]

@krys89 Pretend your client is Annie.

Annie is now covered if she is sued because of your wrongful act as a professional. If Annie was a named insured she would be covered if she was sued for her acts as a professional. The endorsement specifically caveats that it’s for actions taken on your part, which is what they are looking for.

You’re paying your broker, why not have them explain it?

 

[krys89]

@rocki7 Thank you. Yes, I will ask my broker to go over it with me during business hours tomorrow.

I was getting thrown on the "named entity's or subsidiaries'" piece, thinking it was also talking about "Annie", when in fact it seems like it's me, the primary insurance holder. "Annie" is the "person(s)/entity(ies)" in the endorsement. After I posted this question and before you responded, I came to this conclusion as well.