Under the targeted tender doctrine, an insured covered by more than one policy may tender the claim to a chosen insurer and instruct others not to participate. The selected insurer cannot obtain contribution from the untendered carriers.
The doctrine developed primarily in Illinois in the additional insured context.
Alternative Names:
Selective Tender, Tender Selection
Why it Matters?
The doctrine matters most in construction, where a subcontractor's policy names the general contractor as an additional insured. The general contractor can tender exclusively to the subcontractor's carrier and preserve its own loss history and limits. For the targeted insurer the consequence is bearing the entire loss without contribution rights, which makes additional insured endorsement scope a significant underwriting concern.
Frequently Confused with
Related terms
Frequently asked questions
What does targeted tender accomplish for the insured?
Can the targeted insurer seek contribution?
