Masonry Magazine March 1969 Page. 23
In Other Words...
By Walter T. Derk
MCAA Insurance Consultant
Much has been written about insurance but many times the specific question which you would like answered is not covered. Readers are invited to submit questions on any insurance matter. While all may not be answered via this column, every question submitted will be studied and answered by Mr. Derk personally.
Question:
Is the Hold Harmless "problem" going to be with us much longer?
Answer:
In the foreseeable future, yes. Despite some widespread and valiant efforts to nullify construction agreements wherein you are called upon to assume someone else's legal liability, most such efforts failed to pass state legislatures or were vetoed for various reasons.
Remember that such transfers of responsibility came into general use following some rather strange rulings wherein the owner and others innocent of wrong doing were found legally responsible for injury or damage traceable to performance of work by a contractor. Until such source of abuse is removed, there will be continued pressure to protect those principals who may take no part in the project yet be stuck with key responsibilities to prevent injury or damage.
A classic case would be one of your employees who falls while at work, collects Workmen's Compensation benefits and then sues the owner or general contractor for negligence. As long as that kind of action is permitted and condoned, we will be faced with having to indemnify such parties against that kind of third party action and building the cost of such claims into the bid price.
Question:
What can I do to safeguard myself from such agreements?
Answer:
From a practical standpoint, read what you sign, forward a copy of the insurance and indemnity provisions of any contract you execute to your insurance representative for criticism and advice and insure yourself against such assumed contractual liability via the broadest possible terms available (Continued on page 33)
Region F Holds Conference