Automatic Coverage-Newly Acquired Organizations ( Clause Samples
The "Automatic Coverage-Newly Acquired Organizations" clause provides immediate insurance coverage to organizations that are newly acquired by the policyholder during the policy period. Typically, this clause ensures that any new subsidiaries or entities acquired are automatically included under the existing policy for a specified period, such as 30 or 90 days, giving the policyholder time to formally notify the insurer and adjust the policy if needed. This provision is essential for maintaining continuous coverage during mergers or acquisitions, preventing gaps in insurance protection for new entities until formal arrangements are made.
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Automatic Coverage-Newly Acquired Organizations (. 90 days). The word insured shall include as named insured any organization which is acquired or formed by the named insured and over which the named insured maintains ownership or majority interest, other than a joint venture, provided this insurance DOES NOT APPLY to bodily injury, property damage, personal injury or advertising injury with respect to which such new organization under this policy is also an insured under any other similar liability or indemnity policy or would be an insured under any such policy BUT for exhaustion of its limits of liability. The insurance afforded you shall terminate 90 days from the date any such organization is acquired or formed or the end of the policy period whichever is earlier. Coverage L does not apply to bodily injury or property damage that occurred before you acquired or formed the new organization. Coverage P does not apply to personal injury or advertising injury arising out of an offense committed before you acquired or formed the new organization.
Automatic Coverage-Newly Acquired Organizations (. (90 days).