Contractors often enter into contracts with third parties such as project owners, subs, equipment lessors, landlords, municipalities, etc. that include hold harmless and indemnification provisions. Such a provision requires the contractor to assume liability that would ordinarily belong to the other party. If the other party to the contract is in a position of power over the contractor, it is not uncommon for the terms of the hold harmless / indemnification to be extremely onerous. The result can be that the contractor’s General Liability policy may not cover all of the liability that is assumed by the contractor resulting in significant out of pocket expenses or bankruptcy.
Posted on: Tue, 24 Sep 2013 22:10:41 +0000
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