Contracts & Insurance – The Devil is in The Detail
An article was recently published on IRMI that points out how important it is to have clear, specific contract requirements and supporting evidence of insurance.
One of the most hotly contested issues is whether the additional insured (the Owner) will get the right Additional Insured [insurance] from the downstream party (Contractor). Was the contract clear in establishing the “right” additional insured endorsement? Was that endorsement added to the policy? What evidence of compliance exists to support that?
I recently wrote an extensive summary of this issue which was published by Construction Executive Magazine. If you are contemplating any transactions that have an underlying contract with the hopes of (proper) risk transfer, the article is worth a read. If you would like to discuss the contract-insurance-compliance process or need assistance please feel free to contact me.
About The ALS Group
Albert L. Sica is the Founder and Managing Principal of The ALS Group, an independent insurance and risk management consulting firm focused on helping their clients reduce insurance and risk related costs. E-mail Al at [email protected], or call (732)395-4251 for more information.
