Separation of Insureds Provision in CGL Policies

Policy on ripped paper

The case of Taylor v. Admiral Ins. Co., 187 So.3d 258 (Fla. 3d DCA 2016) exemplifies the application of the Separation of Insureds provision.

August 31, 2020
David Adelstein - Florida Construction Legal Updates

CGL policies contain a “Separation of Insureds” provision. This provision oftentimes states:

    Except with respect to the Limits of Insurance, and any rights or duties specifically assigned this Coverage Part to the first Named Insured, this insurance applies:
  1. As if each named insured were the only Named Insured; and
  2. Separately to each insured against whom claim is made or “suit” is brought.

This provision is designed to “create separate insurable interests in each individual insured under a policy, such that the conduct of one insured will not necessarily exclude coverage for all other insured.” Evanson Ins. Co. v. Design Build Interamerican, Inc., 569 Fed.Appx. 739 (11th Cir. 2014). This provision also allows one insured under the policy (e.g., additional insured) to sue another (e.g., named insured) without violating potential coverage because there are separate insurable interests. This is a valuable provision in CGL policies.

Mr. Adelstein may be contacted at dma@kirwinnorris.com



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