Masonry Magazine February 1965 Page. 13
Special Report:
On a subject matter of vital concern to every responsible mason contractor
INSURANCE FOR CONTRACTORS
By Walter T. Derk, Fred S. James & Co.
The Mason Contractors Association of America is pleased to present this Special Report on "Insurance For Contractors". It is a comprehensive guide to liability exposures common to the Construction Industry and the Insurance coverages available to protect against them. The Report will cover General Liability, Property Damage, Contractual Liability, Illinois Scaffolding Act, Automobile Liability and Workmen's Compensation. Make sure you read this and every part of this masonry feature.
Part II
DIVISION V Contractual Liability
Covers the named insured for liability assumed under written contract with another party, provided the bodily injury or property damage is caused by accident. To a contractor, there is little automatic about the coverage for Contractual Liability in standard Comprehensive Policies, which define the word "contract" as a written: "lease of premises, easement agreement, agreement required by municipal ordinance, sidetrack agreement or elevator or escalator maintenance agreement."
Nothing about other Hold Harmless Agreements. It is usually necessary, therefore, to endorse specific agreements onto the policy in consideration of an additional premium before coverage applies. (See discussion of Blanket Contractual Coverage) Rating Basis, per $100 of contract cost.
There is nothing uniform about Indemnifying or Hold Harmless Clauses, which makes them difficult to classify. To decide how much premium is required, insurance companies generally group them into one of the following categories:
Limited Form Indemnification
Contractor's Negligence
A limited form holds someone harmless against claims due to your operations, your negligence, or that of your subcontractors. For example: "The Contractor agrees to indemnify and save harmless the Owner, Architect and Engineer, their agents and employees, from and against all loss or expense (including costs and attorneys fees) by reason of liability imposed by law upon the Owner, Architect, or Engineer for damages because of bodily injury, including death at any time resulting therefrom, sustained by any person or persons or on account of damage to property, including loss of use thereof, arising out of or in consequence of the performance of this work, provided such injury to persons or damage to property is due or claimed to be due to negligence of the Contractor, his Subcontractors, employees or agents."
This is not giving them much; you were already responsible for your own negligent acts or omissions, as well as those of your subcontractors. Essentially, a limited form contract agrees to defend others if they are sued or incur expense because of something you (continued on next page)
This material is copyrighted by Walter T. Derk, 1963, and can not be reproduced in any manner without the written permission by both Mr. Derk and the MCAA.
MASONRY February, 1965
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