Even though it is essentially a requirement in every contract you will sign in the construction industry, Additional Insured coverage is not a standard coverage in the majority of insurance policies. In order to obtain Additional Insured coverage it must be specifically endorsed onto the policy, and so it is important to understand the different ways this can be done.
In my last blog post I set the stage to talk about the importance of Contractual Risk Transfer as an essential part of an effective risk management program. To briefly recap, the word “indemnify” means to make compensation to another for hurt, loss or damage. There are three levels of indemnification – broad, intermediate and limited form. This is part two of a three-part series on the topic.
One of the most confusing and misunderstood concepts in insurance and risk management is contractual risk transfer. However, it is one of the most important aspects of a sound risk management program. This is the first part of a three-part series on the topic.