A question was recently raised about what type of coverage might exist if a school
employee, at the request of the school, is asked to participate in an outside educational
group, panel or association, and if actions by that outside educational group, panel or
association result in a claim or lawsuit, what coverage would exist in the Utica program
to protect the individual employee and school that have been participants in the outside
educational group, panel or association.
The Utica coverage addresses this exposure as follows:
*
Under the Utica General Liability and School Legal coverage forms, "scope of
duty" wording is the key in determining if coverage will apply. As long as an employee
or others who meet the named insured definition are being asked/instructed by the school
to participate in a activity/function, it is considered within the "scope of duties". It is not
required that all the activities/function that the employee could be asked to participate in
be in writing.
*
As long as the employee or others meeting the named insured wording, are
participating at the request of their school in the outside/3rd party educational association
or organization, the Utica coverage forms will respond on behalf of the school and its
employee. The Utica coverage forms will not extend coverage to the outside/3rd party
associations/organizations.
*
Utica's position is that this extension applies whether the employee is serving on a
committee, etc or is serving as a director, officer, trustee, etc of that outside/3rd party
association/organization.
*
Additional Insured coverage under GL and SDL coverages for the outside/3rd
party associations/organizations is not needed:
(1) Utica has extended its GL and SDL forms for employee and school
involvement as outlined above and (2) specific school's limits are diluted by the inclusion
of that outside/3rd party entity as an additional insured.
*
The Utica GL coverage form does include a Blanket Additional Insured wording
clause that extends additional insured coverage to a 3rd party when the insured and the
3rd party agree to add the 3rd party as an additional insured....the wording is such that it
does not require anything (ie: contract) to be in place between the two parties, but
rather......."any entity when you and such entity have agreed that such entity is to be
added as an additional insured on your policy".
*
While out of their control, Utica would like to see the outside/3rd party
associations or organizations obtain their own coverage and have it put into place. From
a risk management standpoint, a good recommendation.
The Utica interpretation of this extension is very positive. From researching other SDL
markets, only one (UE) automatically makes this type of extension available for
employee involvement in a outside/3rd party association/organization, but does not
respond to involvement when in a role such as a director, officer, trustee, etc. Carriers
will consider these type of request on a one-on-one basis, subject to underwriting each
separate organization and a potential additional premium charge. This approach would
apply to the St Paul School Legal coverage form also.
If you have any specific questions or would like to discuss further, please contact us.
Regards,
Dave
David F. Geyer, CPCU
Senior Vice President
Hilb Rogal & Hobbs
10 State House Square
Hartford, CT 06103
Phone: (860) 756-7369
Fax: (860) 278-5776
david.geyer@hrh.com