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29 Apr 2014 General Contractor Held Not to Have Coverage as Additional Insured for Damage Arising Out of its Subcontractor’s “Completed Operations”

  The language contained in policy endorsements dramatically impacts the scope of coverage for additional insureds. In a recent decision, Carl E. Woodward, LLC v. Acceptance Indemnity Insurance, _____ F.3d ____ (5th Cir. 2014), the U.S. Court of Appeals for the Fifth Circuit overruled the district court’s determination that a general contractor was insured as an additional insured on its subcontractor’s commercial general liability (CGL) policy for claims arising out of the allegedly defective work performed by the subcontractor.   The case arose out of a project to build condominiums on the Mississippi Gulf Coast. The general contractor entered into a subcontract for concrete work and was named as an additional insured on the concrete subcontractor’s CGL policy. The subcontractor worked on the project from…