The BOP policy includes endorsement BP 04 07 07 13, "Additional Insured – State or Governmental Agency – Permits or Authorizations Relating to Premises." I am getting hung up on the language in the endorsement, which states, "premises the named insured owns, rents or controls AND to which the insurance applies." I would think that the 1,200 sign locations would be considered a "premises the named insured controls." My issue is that the current BOP policy does not list/or schedule any of the 1,200 sign locations. It only lists/schedules the office location. Does this endorsement automatically extend the liability coverage under the BOP to include the 1,200 sign locations?

Given the info above, is there liability coverage under the BOP for the "named insured" at these 1,200 locations? Would these locations be considered "named insured operations," and therefore, be covered under Section II, Liability Coverage, despite the fact the 1,200 locations are not "scheduled" on the policy?

— Pennsylvania Subscriber

Answer: Your question is whether the 1,200 sign locations are "premises the named insured owns, rents or controls AND to which the insurance applies" for purpose of liability coverage under the BOP form, BP 00 03 07 13. The insured is a Trust, which according to the standard definition of Merriam-Webster includes, "a property interest held by one person for the benefit of another…" By this definition, the insured has a property interest in the 1,200 sign locations. The insured's operations are to construct, maintain, and service signs on behalf of the PA DOT. By this description, the insured is the contractor, and they subcontract out all work at each of the sign premises.

The liability coverage under the BOP form would indeed apply to the sign locations, with coverage applying to bodily injury or property damage due to occurrences that take place in the coverage territory. 

However, the exclusions in the form will also apply. For example, exclusion k. Damage to Property, paragraph (5) excludes property damage to that particular part of real property on which you or any contractor or subcontractor working directly or indirectly on your behalf is performing operations, if the "property damage" arises out of those operations; or (6) that particular part of any property that must be restored, repaired or replaced because "your work" was incorrectly performed on it. Paragraph (6) does not apply to "property damage" included in the "products-completed operations hazard".

Exclusion m. Damage to Your Work excludes damage arising out of the insured's work, except if that work was performed on the insured's behalf by a subcontractor.

However, attachment of endorsement BP 04 07 07 13 supersedes the coverage in the BOP form with respect to these 1,200 sign locations. This endorsement applies to the insured's operations performed by the insured or on their behalf for which the state or subdivision has issued a permit. The insurance applies only when the state, governmental agency or subdivision, or political subdivision has issued a permit or authorization in connection with premises the name insured owns, rents, or controls and to which the insurance applies. Therefore, the 1,200 sign locations are covered for the hazards listed in the endorsement, as follows:

Only the following hazards are covered: the existence, maintenance, repair, construction, erection, or removal of advertising signs, awnings, canopies, cellar entrances, coal holes, driveways, manholes, marquees, hoistaway openings, sidewalk vaults, street banners or decoration, or similar exposures; the construction, erection, or removal of elevators; or the ownership, maintenance, or use of any elevators covered by the insurance.

Further, some states have anti-indemnification laws, which prohibit provisions in construction contracts that require a party to indemnify another party against liability for such other party's own fault or negligence. Therefore, the endorsement states that insurance is provided only to the extent permitted by law.

The endorsement also states that if coverage provided to the additional insured is required by agreement or contract, the insurance provided will not be broader than what is required by the agreement or contract. The most the insurer will pay is the amount required by the agreement or contract or the policy limits, whichever is less. The endorsement will not increase the applicable limits of insurance in the declarations. 

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