Construction Contract Language and Insurance Coverage Must Be Consistent

July 30, 2015 — Craig Martin – Construction Contract Advisor
How often do you review both the additional insured language in the contract and the insurance policy provided by a subcontractor? My guess is, unless the project has gone off the rails, NEVER. Well, perhaps you should to make absolutely sure the extent of the subcontractor’s insurance obligations and whether those obligations are being fulfilled. This point was recently addressed in a recent DRI article analyzing the Deepwater Horizon/BP lawsuit. My partner, Anne Marie O’Brien, also blogged on this a few months ago. As you will recall, Transocean’s Deepwater Horizon oil-drilling rig exploded, killing 11 workers, and polluted the Gulf of Mexico. BP demanded that Transocean’s insurer pay for the loss. Transocean’s insurer said no, and the litigation ensued, in state court, federal court, and the Texas Supreme Court. It was quite an odyssey of litigation. Read the full story...
Reprinted courtesy of Craig Martin, Lamson, Dugan and Murray, LLP
Mr. Martin may be contacted at cmartin@ldmlaw.com