Masonry Magazine January 1967 Page. 49
insurance for contractors
SECOND EDITION
Revised to include the new policy forms and entirely new material on:
* Contract Bonds
* Architects' and Engineers' Professional Liability
* Contractors' Equipment Floaters
* Builders' Risk Insurance
* Employee Benefit Liability
* Uniform Hold-Harmless Clauses
* Composite Rating
by
Walter T. Derk
Assistant Vice President
FRED. S. JAMES & CO.
Insurance Brokers and Consultants
Since 1858
PART III
Contractual Liability including Purchase Order Agreements, Limited Form Indemnification and on through to Limits of Liability are covered in this installment. Keep this and every issue of Masonry so that you will have the latest on insurance. For back issues covering this subject write to Masonry, and they will be sent as long as the supply lasts.
DIVISION V:
CONTRACTUAL LIABILITY
Covers the named insured's liability for bodily injury or property damage assumed under written contract with another party. It is important to get the distinction here; this is someone else's legal liability which the insured contractually agrees to pay for.
Even under the new policy form, there is very little contractual coverage automatically provided by standard Comprehensive General Liability policies. They define an incidental contract (automatically covered) as a written:
"lease of premises,
easement agreement,
indemnification of a municipality required by ordinance,
sidetrack agreement or
elevator maintenance agreement."
Nothing about other Hold-Harmless Agreements arising out of construction contracts, and even some of those listed above have strings on them. It is still necessary, therefore, to endorse specific agreements onto the policy in consideration of an additional premium before coverage applies. (See discussion of Blanket Contractual Liability Coverage.)
Rating basis, usually per $100 of contract cost.
Purchase Order Agreements
Very few of us take time to read the fine print on the bottom or reverse side of routine purchase orders, where it is not unusual to encounter something to the effect that:
"Seller agrees that seller shall be responsible for any injuries to persons (including death) and damages to property, including buyer's employees and buyer's property, that occur in the performance of this purchase order, and that seller shall save harmless and indemnify buyer from and against any liability or costs arising from such injuries and/or damages."