An operator's contract clause the subcontractor could not meet
The situation
A services subcontractor working inside an operator's facility had signed a contract requiring it to indemnify the operator and its other contractors, to name them as additional insured and to waive rights of subrogation. Its liability policy carried a contractual liability exclusion, had no cross-liability clause, and its workmen's compensation cover said nothing about work on third-party premises. Sudden and accidental pollution was excluded outright. The certificates it had issued did not match the wordings behind them, and the site access team had begun turning crews away at the gate.
What we did
We compared the contract's insurance schedule line by line with what each policy actually granted and produced a gap list the client could take back to the operator. Liability assumed under contract was negotiated back into the wording, cross-liability and waiver of subrogation were added by endorsement, and a limited sudden and accidental pollution extension was placed. Employer's liability was extended for work on third-party premises. Certificates were reissued to describe the cover as written, and we agreed a route for the operator's insurance department to raise queries with us directly.
- Sector
- Oil and Gas Services
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