Q: Do you have a contract with a third party that requires insurance?
A: Enduris can provide the third party with an Evidence of Coverage (EOC) certificate.
Q: Do you find insurance requirements require you to name the third party as an “additional insured”?
A: The state risk manager and the Washington Administrative Code prohibit risk pools, such as Enduris, from granting additional insured status to nonmembers.
Enduris will continue to provide the third party with an EOC in the form of a certificate.
Although Enduris is unable to provide additional insured status to a third party, Enduris can cover the indemnification undertaken by its members in most cases through contractual liability and the Enduris Memorandum of Coverage section defining a member contract.
As long as the contract between an Enduris member and a third party qualifies as a “member contract” and the claim against the indemnitee third party is otherwise covered by the terms of the Memorandum of Coverage, the member’s indemnity obligation should also be covered.
In response to this change in practice, Enduris strongly recommends our membership adds the following language in a contract’s insurance requirements when “additional insured” is required of the member within the contract:
In the alternative, either party to this agreement may fulfill the insurance obligations contained herein by maintaining membership in a joint self-insurance program authorized by RCW 48.62. In this regard, the parties understand that the party to this agreement who is a member of such a program is not able to name the other party as an “additional insured” under the liability coverage provided by the joint self-insurance program.
Third parties requesting they be named as an additional insured can be provided this document which further explains a member’s coverage through Enduris.
If the other party will not allow the change and continues to require additional insured, please contact Enduris for consultation.
In summary, Enduris will continue to provide a member’s coverage certificate document for third parties when proof of insurance is required in a contract. The coverage document will provide for our member’s evidence of coverage to the third party.
