Contracting parties, especially in big-ticket agreements, often allocate risk of loss among themselves. Indemnities are usually required. One party may be obligated to name the other as an additional insured under the first party’s insurance policies. If one party is required to pay for damage/injury caused by the other party’s own negligence, then the coverage under the indemnifying party’s policy for an “insured contract” comes into play.
To avoid unhappy surprises, it is vital for contracting parties and their advisors to understand how additional insured and insured contract coverages work, including how they differ from one another, and their interplay with indemnity clauses. This presentation will discuss the use of these coverages, litigation that has arisen in the past concerning these issues, and how to avoid pitfalls in the future.
