The transfer allows an insurer to sue a third party that has caused harm to the insured and follows all methods to recover some of the money it paid to the insured as a result of the loss. This is a summary of the insurance company`s key promises, and indicates what is covered. In the insurance agreement, the insurer undertakes to do certain things, such as paying losses for guaranteed risks, providing certain services or defending the insured in liability action. There are two basic forms of insurance agreement: In addition, your application may be cancelled because you have not taken into account certain information requested by your insurance company. In this case, a lack of knowledge and neglect can cost you dearly. Check your insurer`s insurance functions instead of signing them without immersing yourself in the fine print. If you understand what you`re reading, you can make sure that the insurance product you sign up for covers you when you need it most. This article discusses potential problems and concerns that may arise between general contractors (“General”), subcontractors (the “sub”) and their insurers when claims may arise from third parties (also referred to as third parties). This is a broad legal area that varies from state to state. When a general assigns a subcontractor to carry out work on projects, the parties should always reduce their expectations and agreements to a written document in which both parties agree and agree on the terms. These documents may have many names, but they are contracts that bind the parties to the terms. Taking responsibility for another entity that they would not normally have is a common element of these agreements for businesses or organizations. This form of agreement, by which one party assumes or contractually assumes responsibility for another party, is commonly referred to as “compensation” or “compensation agreement.” This compensation may, in part, take the form of insurance coverage for another party.

When these agreements are concluded, it is generally the sub that is not only obliged to keep the general unscathed, but to add the general as an “additional insured” to the general directive on the responsibility of the subs (“LMC”). As a general rule, the subs insurance agent or insurer is then asked to issue an “insurance certificate” (“COI”) to confirm this status. Often, the general`s office will receive the IOC and drop it off. In normal business, many projects end without incident. However, if a third party is injured or there is unexpected harm on the project`s website, companies can expect legal action and litigation may soon follow.