The U.S. Court of Appeals for the Third Circuit issued a decision Feb. 17 that is likely to have a significant impact on coverage for additional insureds sued in Pennsylvania by employees of the named insured.

Generally, additional insured status provides coverage for the additional insured that is limited to claims that have a nexus with the activities of the named insured under the policy. While many variations exist, there are generally two formulations of the policy language that express the required nexus.

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