Here are three simple rules for obtaining indemnity and insurance on a construction project if you are the owner or the General Contractor.
#1. Make all subcontractors add you as an additional insured on their CGL policies by endorsement. Insist upon the ISO 1985 version, which would cover you for losses incurred even if it is your fault. This is the broadest form available.
#2. Draft a contract with the subs that contains two separate clauses: one to indemnify you for any losses arising out of or connected to the project in any way; and a separate clause to provide you with insurance as an additional insured by endorsement. Make certain to state that the clauses stand alone from each other and are not dependent upon each other for your recovery.
#3. Know whether you can obtain indemnity by statute in your state. Most states prohibit indemnity in construction projects. But these statutes also carve out an exception for an indemnity pursuant to an “insuring agreement.” The insurance clause discussed in #2 is a separate insuring agreement. It should be upheld as enforceable if it stands alone and it is specific in its requirements.
By following these three simple rules you should be able to obtain indemnity through insurance for your project.