Originally published in the winter 2019 issue of Managing Risky Business
Slip, trips and falls make up a significant portion of our liability claims. When this came up in our meetings with liability underwriters, they suggested that consistent language in snow removal contracts could have a positive impact on program claims. The language below was provided by insurance underwriters and we recommend using the wording below in your contracts:
LIABILITY INSURANCE POLICY
Proof of Liability Insurance is required. The snow removal contractor agrees to purchase and maintain in force, at its own expense, including payment of all deductibles, and for the duration of this contract, the following policy(ies) of insurance, which policy(ies) of insurance shall be in a form acceptable to INSERT PROVIDER NAME and be specific and exclusive to this contract, in the amount of TWO MILLION DOLLARS ($2,000,000) per occurrence, with a Certificate of these policies originally signed by an authorized agent of the insurance company issuing the policies and a certified copy of these policies being delivered to INSERT PROVIDER NAME upon the snow removal contractor’s execution of this contract.
(1) Commercial General Liability, with
(a) INSERT PROVIDER NAME added as an additional insured;
(b) Provisions for cross-liability and severability of interest as between the snow removal contractor and INSERT PROVIDER NAME;
(c) Not less than THIRTY (30) days’ prior written notice to INSERT PROVIDER NAME of any cancellation, termination, expiry or amendment of or change or revision to the policy.
LIABILITY AND INDEMNITY
The snow removal contractor shall indemnify, save harmless and defend INSERT PROVIDER NAME, its officials, officers, employees and agents against and from all actions, causes of action, interest, claims, demands, costs, damages, expenses including defence costs or loss which INSERT PROVIDER NAME may bear, suffer, incur, become liable for or be put to by reason of any damage to property or injury or death to any persons by reason of, arising out of, or in connection with the work covered by this contract, or by reason of or arising out of the use of the premises or in connection with the work covered by this contract.
You will note that this wording:
- Sets out clearly the contractor’s responsibilities and duties
- Contain indemnity and defence provisions in the provider’s favour
- Requires the contractor to have the provider added as an additional insured under the contractor’s insurance policy
- Sets out the type of insurance policies required and minimum limits
Have questions? Contact us.