In the construction industry, contractual indemnity and additional insured coverage are widely regarded as separate but parallel risk transfer paths—each with their own nuances, advantages, and pitfalls. The two are ordinarily intended to complement each other. Where one is unavailable, the other may yet be.
In many states, however, indemnity and insurance are being increasingly pulled together. Upstream and downstream parties alike should recognize this trend, appreciate the implications to their unique risk transfer goals, and tailor their risk transfer plan accordingly.
Jul 11, 2016
Gregory D. Podolak