“Incidental” Versus “Direct” Third Party Beneficiaries Under Insurance Policies in Which a Party is Not an Additional Insured

Green rules key on keyboard

The case involves claims by a higher-tiered party that they were a third party beneficiary under an insurance policy in which they were not named as an additional insured.

April 18, 2023
Garret Murai - California Construction Law Blog

As they say, when it rains, it pours. Indemnity and insurance are the “Big Two” when it comes to risk avoidance on construction projects. The next case, LaBarbera v. Security National Security Company, 86 Cal.App.5th 1329 (2022), involves both. It’s an interesting case, which I think could have gone either way, involving claims by a higher-tiered party that they were a third party beneficiary under an insurance policy in which they were not named as an additional insured.

The LaBarbera Case
The Indemnity Provision and Insurance Policy
In June 1016, Chris LaBarbera hired Richard Knight doing business as Knight Construction to remodel his house in Carmichael, California. The construction contract included an indemnity provision which provided that Knight would defend and indemnify LaBarbera from all claims arising out the remodeling work except for claims arising from LaBarbera’s sole negligence and willful misconduct.

Mr. Murai may be contacted at gmurai@nomosllp.com



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