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12 Dec, 2013

THE BOTTOM LINE: New CG 20 38 ADDITIONAL INSURED ENDORSEMENTS

2018-04-23T20:59:44-05:00December 12th, 2013|Additional insured coverage, Construction liability, Midwest Insurance Law Guide|

     ISO amended the 2013 form CG 20 38.  This form is used to add a blanket additional insured to a policy.  New terms limit coverage:      (T)he insurance afforded to such additional insured described above...Only applies to  the extent permitted by law.... (Emphasis added).      What does this mean?  The committee added these terms to incorporate laws recently enacted in certain states that limit indemnity or prohibit it altogether between parties.  Despite [...]

14 Mar, 2013

HOW TO GET INDEMNITY IN A CONSTRUCTION CONTRACT

2018-04-23T20:59:45-05:00March 14th, 2013|Additional insured coverage, Commercial General Liability (CGL), Construction liability, Contract liability coverage, Indemnity clauses, Midwest Insurance Law Guide|

Most Midwest states have specific statutes that bar one party from asking for indemnity from another party in a construction related contract.  Iowa, Kansas and Missouri do not.  However, Nebraska, North Dakota, South Dakota and Minnesota do. All parties to any contract that involves any type of construction or design must be aware of these statutes.  If not, your AIA or other contract provisions on indemnity may not be upheld or enforceable in a court of law.  This is [...]

8 Mar, 2013

HOW TO PROPERLY INSURE A CONSTRUCTION PROJECT

2018-04-23T20:59:45-05:00March 8th, 2013|Additional insured coverage, Construction liability, Construction subrogation, Indemnity clauses, Insurance contract, Midwest Insurance Law Guide|

  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 [...]

22 Jan, 2013

MUTUAL WAIVER OF SUBROGATION CLAUSES

2018-04-23T20:59:45-05:00January 22nd, 2013|Commercial General Liability (CGL), Complex insurance coverage, Construction liability, Construction subrogation, Midwest Insurance Law Guide, Mutual waivers|

Because they are more and more commonly used, it is worth our time to look into these clauses and understand how they affect both the policyholder and the insurance company.  Let’s start with discussing what these clauses mean.    What is a mutual waiver of subrogation clause?  These clauses are commonly found in construction and landlord tenant contracts.  The language insists that the parties to the contract mutually agree to waive [...]