Many commercial contracts contain risk-transfer provisions, including indemnification and insurance requirements. They should not be treated as boilerplate provisions and should be carefully reviewed to ensure that the language in the contract is clear, concise and does not contradict the language in the insurance policies.
One of the key insurance policy provisions that is often included in commercial contracts to transfer risk is the requirement that one contracting party make the other contracting party an additional insured on their insurance policy. There are many additional insured forms attached as endorsements to insurance policies. In 2013, the Insurance Services Office (“ISO”) dramatically revised the standard additional insured endorsement form. These revisions are more restrictive in the amount of coverage available under CGL policies for additional insureds. The three significant changes are:
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