Insurance Provisions in Commercial Project Contracts: Avoiding Pitfalls That Lead to Coverage Denials

This CLE webinar will discuss what transactional lawyers often get wrong when drafting insurance provisions in a commercial contract and how insurance attorneys can avoid common pitfalls that result in denied claims and uninsured losses.

Contracts for commercial projects of any nature—construction, design, product development—always include insurance obligations to cover damage or third-party claims. Contract drafters who are not insurance lawyers are often focused on the "deal" and give short shrift to the insurance provisions. If not worded properly, insurance obligations, even when complied with, may not offer the expected protection. Insurance provisions should also take into consideration how the contractual obligations to or from third parties may affect coverage and the claims process.

Insurance lawyers who review project contracts before they are executed can identify potential coverage pitfalls and offer solutions. Topics that spawn problems include indemnity, additional insured obligations, limitation of liability, invisible exclusions, ambiguities, cancellation notice requirements, numerous types of exclusions, and many more. Some obligations that sound helpful are ephemeral. Insurance lawyers dealing with denied claims may also look to these same provisions to explain why losses occurred and prevent future ones.

Listen as our expert panel discusses how to avoid pitfalls related to the insurance requirements found in commercial project contracts.