📑 Contract Requirements: Additional Insured, Waivers & Hold Harmless 🇨🇦
In Canadian business contracts—whether for construction, consulting, or service agreements—it’s common to encounter clauses tied to insurance and liability. Three of the most significant are Additional Insured, Waivers of Subrogation, and Hold Harmless Agreements. Understanding how these work is key to avoiding costly gaps in protection.
⚡ Additional Insured (AI)
- Extends your insurance policy to cover another party, such as a landlord or general contractor.
- Provides them protection under your liability policy if a claim arises from your operations. 🛡️
⚡ Waiver of Subrogation
- Prevents your insurer from pursuing recovery against the other party after paying a claim.
- Common in construction, lease, and vendor agreements to help minimize legal disputes. ✍️
⚡ Hold Harmless Agreement
- A clause where you agree to defend, indemnify, and hold another party harmless from certain liabilities.
- Shifts risk to your side, making it essential that your insurance aligns with these obligations. ⚖️
đź“Ś Why It Matters in Canada
These provisions transfer risk between parties—but without proper coverage, you could be left personally or financially exposed. Reviewing contracts with your broker helps ensure your policy endorsements match what you’ve agreed to.
âś… The Takeaway
Before signing any contract, confirm your insurance supports Additional Insured, waiver, and indemnity obligations. A careful review today could prevent unexpected legal or financial headaches tomorrow.
👉 Do your contracts and insurance align?
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