A Deepwater Horizon litigation highlights the need for companies to link their business contracts with their insurance policies. We discuss the interaction between compensation agreements and “additional insured” arrangements and the importance of retaining contract engineers to deal with some very important pitfalls. This is an example of a complete degradation of the form, as it maintains the safe versions of any liability, regardless of the fault. This provision may be unenforceable and unenforceable in some states because it is contrary to public policy. Talk to a lawyer to determine the extent to which anti-compensation status is in effect. While this concern has always been at the heart of insurance advisors` concerns, two more significant events have highlighted the issue of insurance compensation: the recent deepwater Horizon coverage battle and the insurance industry`s proclamation of a new language of insurance. Together, these two events highlight how negotiating compensation rules, without a full understanding of the insurance policies associated with them, can lead to disastrous results. The above disagreement raises the central legal question: can the scope of an insurance policy be changed by a separate commercial contract? The issue of supplementary insurance status is a challenge. Many misunderstandings arise when the contracting parties add to each other`s insurance policies as additional insured.
There is also the fierce struggle between insurers and compensation payers who want to limit the level of additional insurance coverage as part of their policies and to compensate them who want to maximize coverage in compensation policies. In addition, the interaction between supplementary insurance status and indemnification clauses, insurance requirements and other contractual provisions is unique and complex. These complications have resulted in numerous hedging disputes and, as a result, a series of revisions to standard insurance forms and insurance supplements. However, litigation continues unabated and controversy and confusion over supplementary insurance status in primary and liability policies, compensation contracts and insurance certificates continue. In the Tribunal`s view, to be separate and independent, the insurance provision must be a discrete requirement, separate from the requirements of the compensation plan and beyond. Applying this definition to the facts in cash, the 5th Circuit found that the BP/Transocean compensation provision was “separate and independent” and that bp was therefore entitled to additional insurance coverage under the Transocean policy. Another possibility of liability assurance is to add the MCO as an additional insured under the CGL Directive. However, it is important to understand that ISO amended its additional insured mentions in 2004 so that they do not cover an additional policyholder for its negligence alone.
This could be a problem if the treaty contains a broad form that contains a harmless agreement. In the above examples, the additional approved assured would not cover the GC for the scaffolding accident, even with the extended form agreement. For recovery, the GoC would have to make claims for coverage of the insured contract. On this blog, we presented a survey on the status of additional insurance under the CGL, roof and surplus, automobile, commercial real estate and employee compensation insurance. Thousands of times a day, demanding companies around the world negotiate commercial contracts. Almost all of these contracts contain compensation agreements of one kind or another. The majority also includes “additional insured” provisions – requirements that one party must be covered by the other party`s insurance policies. Despite the importance of compensation and supplementary insurance, these are too often accepted by companies without diligence.