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5 Nov, 2013

INSURANCE POLICY RISK TRANSFERENCE – 2 WAYS

2018-04-23T20:59:44-05:00November 5th, 2013|Additional insured coverage, Commercial General Liability (CGL), Contract liability coverage, Indemnity clauses, Midwest Insurance Law Guide, Risk transference|

How does a policyholder enforce a contract in which one party assumes the risk of another?    Let's break it down two ways: By additional insured (AI) endorsement.  AI is an insured. Insurer owes AI fiduciary duties. AI must follow policy terms for coverage. AI does not need to have a written contract with Named Insured for coverage to apply. In most states, AI coverage will include negligent acts of AI in addition to [...]

3 Aug, 2013

BELT + BRACES = RISK TRANSFERENCE

2018-04-23T20:59:44-05:00August 3rd, 2013|Additional insured coverage, Commercial General Liability (CGL), Contract liability coverage, Midwest Insurance Law Guide, Risk transference|

The best way to protect a client from legal liability and to transfer risk to another company is the belt and braces approach.  A "belt" is a well crafted indemnity clause where one party (indemnitor) promises to hold the other (indemnitee) harmless for any and all losses arising out of, or connected to, the indemnitor's work. An example is when a sub-contractor promises to hold a contractor harmless for loss or damages which occur when [...]

15 Mar, 2013

3 STEPS TO RAILROAD RISK TRANSFERENCE

2018-04-23T20:59:45-05:00March 15th, 2013|Additional insured coverage, Indemnity clauses, Insurance contract, Midwest Insurance Law Guide, Railroad endorsement, Railroad indemnity, Railroad protective insurance coverage, Risk transference|

There are three essential steps to railroad risk transference through insurance: 1.     Add an indemnity clause to all contracts making clear that you are asking for indemnity for the contractor's or vendor's negligence.   If you do intend to seek indemnity for the railroad's negligence too, this language needs to be clear and unequivocal in order to adhere to most states' requirements.  Not all states allow exculpatory indemnity.  (I will write more about this later.  [...]

11 Dec, 2012

Railroad as an Additional Insured Part 2

2018-04-23T20:59:46-05:00December 11th, 2012|Midwest Insurance Law Guide, Risk transference|

Railroad risk transference through insurance can be accomplished several ways.  First, the vendor can purchase standard Commercial General Liability (CGL) coverage.  Most policies are written with standard forms which were drafted by insurance advisory organizations.  These forms contain uniform language used by most all insurance companies.  This is why they are called “standard” forms.   The standard CGL form contains a broad provision which does not provide insurance coverage for [...]

3 Dec, 2012

Railroad as an Additional Insured Part 1

2018-04-23T20:59:46-05:00December 3rd, 2012|Midwest Insurance Law Guide, Risk transference|

Risk transference is ubiquitous in the railroad industry.  Railroad losses traditionally can be catastrophic and expensive.  Most railroads are self insured by using a captive.  Once this self insurance is exhausted, the Class I railroads will have a very high self insured retention that does not kick in until losses exceed the multi millions.  For this reason a railroad will transfer, a potential risk for future ability onto a contractor [...]