Copyright © 2017 ALM Media Properties, LLC. All Rights Reserved.
It is common today for contracts to require parties to indemnify the other and maintain insurance, or add the other as an additional insured under its commercial general liability (CGL) insurance. While some companies execute contracts without reading or understanding the significance of such provisions, others have come to appreciate that these terms constitute a risk-transfer tool that can help protect their business from potential future losses. Also, more and more insurance companies are requiring their insureds to use such provisions in order to obtain coverage at particular premiums.