With costs continuing to rise in every aspect of the construction industry, contractors are scrambling for ways to cut those costs. And since insurance is one of their biggest expenditures, many are adjusting their coverage in an effort to reduce their premiums.

Additional Insured coverage and endorsements are at the center of many construction insurance contract disagreements, misunderstandings, and costly lawsuits in the construction industry. Additional Insured endorsements are usually worded in fairly broad terms and often include conditional limitations on coverage. They also often contain assertions that they will be excess to other insurance policies (the "Other" Insurance problem). When these assertions conflict with opposite provisions in other policies, disputes can arise based on the responsibility of an insured in causing an incident, and the liabilities of their respective insurance companies.