63
RISKMANAGEMENT
DECEMBER 2014
ACT
Workers’ Compensation, and any such
coverage shall be endorsed tobeprimary
andnon-contributorywith any insurance
maintainedbyContractor. (This language
mayultimately stay in, but if youhave a
chance to strike it out, try anddo so.)
When it comes down to it,we atNBIS
know that negotiating contract language
canbe a long anddifficult process, but
it’s ultimatelyoneof themost important
things you candobefore commencing
workon a jobsite. TheNBISContract
Management Program, designedwith
thehelpof ourNationalCoordinating
DefenseCounsel, is a systematicprocess
thatweuse to ensure you’ve got thebest
language, thebest position, and thebest
fighting chance in the event of a claim.
If you’re apolicyholder,we canhelp
you re-underwrite your contracts. But
even if you’renot, paying attention to
the insurance and indemnityprovisions
inyour contract, as described in this
column, can ensurewhen things gowrong
– and they inevitablywill –you’re in the
best positionpossible.
■
them any time a claimpops up, regardless
ofwhether ornot they caused the claim.
Whenyou successfullynegotiate language
intoyour contract that limitsAI status
to claims that ariseout of your actual
work, your company is in amuchbetter
position.After all, you can reallyonly
control the things that are right in front
of you.
As an example, the twoAI provisions
belowvaryonly slightly in their language,
but the secondone significantly limits the
coverage your company is giving away
whenyou signyour contract. This iswhat
youneed to aspire to every time you’re
about to render your JohnHancock.
Contractor shall benamed as
an additional insuredon each
of thesepolicies, except forWorkers’
Compensation, and any such coverage
shall be endorsed tobeprimary and
non-contributorywith any insurance
maintainedbyContractor.
Contractor shall benamed as
an additional insured for the
negligent operationofVendor Services
on eachof thesepolicies, except for
1
2
The two things to look for in a contract are the indemnity provision and the
insurance provision. Arguably the twomost important clauses in a contract, these
two paragraphswill tell you exactly how your company needs to react in the event
of a claim andwho, specifically, your insurance policy needs to cover.
Storyconnects.
Story inspires.
Storycompels.
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storythatwill turn
prospects intoclients.
We’llhelpyou tell it
to theworld.
Thrive isacopywritingagency.
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