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Contractual

Agent question: “We have not been individually adding Additional Insured endorsements, relying on them being an indemnitee in the ‘insured contract’ wording of the CGL or BOP policies, which gives them AI status without endorsing that on the policy.” Could this agency have a problem, along with their customers?
Contractual risk transfer is a fact of life for any agent working with construction clients. Your client might be the transferor or the transferee or both on the same job. Because insurance is a slave to the contract, you have to understand contractual risk transfer.
An insured who leases premises accidentally damaged the building with a backhoe. He has a written lease on the premises and the lease makes him responsible for damage to the property. The agency feels that since this is an 'insured contract,' the exclusion for damage to property you rent does not apply and the damage should be covered under the contractual liability.
Your insureds routinely sign hold harmless agreements with all kinds of entities...property owners, contractors, large corporations, municipalities, and others. How many of these contracts do you think are covered by your insureds' CGL policies and to what extent? In this article, we'll give you a few actual examples that may have you grabbing for the nearest defibrillation machine.