Draft outline for asbestos project monitoring contract, May 2002

NYC 9/11 Public Portal Document

ace Westchester specialty group

a. Any person, organization, trustee or estate that has obligated you by written contract to provide the insurance that is afforded by this policy, but only with respect to liability arising out of “your work” or “your product” and to property owned or used by you; b. At your option and subject to the terms of this policy, any person organization, trustee or estate (other than the “Named Insured”) included as an additional insured in the “Underlying Insurance” but only with respect to liability arising out of “your work”, “your product” or property owned or used by you;

In early July, 2004, we received a copy of a letter authored by Admiral Insurance Company, which as noted above, was the primary carrier that issued the policy under which both the WSLIC and Illinois policies attached. Admiral’s denial of coverage, issued with respect to a similar claim, addressed only the December 10, 2001 to December 10, 2002 policy year. We understand, however, that the Admiral policy for December 10, 2002 to December 10, 2003 contained the same policy terms and conditions as the prior policy year.

Admiral’s denial asserted that its policy did not identify the Port Authority as an additional insured. Moreover, Admiral noted that it was not provided with a lease or any other contract that might implicate additional insured coverage for the Port Authority. Thus, Admiral denied coverage to the Port Authority.

For the same reasons, WSLIC and Illinois Union deny additional insured coverage to the Port Authority. First, since the Port Authority is not an additional insured on the Admiral policy. Section (2Xb) is not implicated. In addition, since no contract has been provided to Admiral, Illinois Union, or WSLIC requiring additional insured coverage for the Port Authority for the World Trade Center clean up site or the Fresh Kills landfill. Section (2)(a) is not implicated. Accordingly, because the Port Authority is not entitled to named or additional insured status on the Illinois Union and WSLIC policies, Illinois Union and WSLIC deny any obligation to defend or indemnify the Port Authority in the Ford and Arcese suit.

In addition, the Illinois Union and WSLIC policies contain the following coverage limitation:

Designated Premises Limitation

Except with Respect to Coverage which may be provided under the automobile limitation endorsement (L40) or the Employer’s Liability endorsement (108), the coverage provided by this policy is limited to bodily injury”, “property damage”, “personal injury” or “advertising injury” arising out of the ownership, maintenance or use of the premises shown below and operations necessary or incidental to those premises: Page 4/9

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