Property Manager as Additional Insured

July 21, 2015

We insure an apartment complex under a CGL form. The complex has a property manager who is listed as an additional insured under an endorsement, and he has the responsibility to inspect and maintain the premises. A renter tripped and fell going down a flight of stairs and he alleges the carpet was torn. A lawsuit has been filed naming the apartment complex and the property manager as defendants. The property manager is tendering the defense and indemnity to the apartment complex pursuant to his additional insured status.

Since the property manager failed to inspect and fix the torn carpet and may have his own independent negligence, are there coverage defenses pursuant to the additional insured status or does the status even matter since the property manager is also a described insured based on the definition of Who is an Insured?

Ohio Subscriber

The manager is an additional insured as you say via an endorsement, but you should check the wording of that endorsement to see how the endorsement is worded when it comes to coverage for an additional insured. However, as you note, the general liability coverage lists a real estate manager as an insured, so he is entitled to defense and coverage under the policy of the apartment complex.

Also, consider the point that, under certain circumstances, the manager may be considered an employee of the complex and that status would extend coverage to the manager under the CGL form.

So, regardless of how the property manager is perceived in this instance, the CGL form of the apartment complex will provide coverage for him.

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