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Construction Example: Claims and Risk Transfer

Bodily Injury Claims


by Subcontractor’s
Employee Lawsuit for indemnity pursuant to
indemnity agreement in Subcontracts via
either (1) separate lawsuit; or (2) third
party action

Lawsuit for indemnity per General Tenders defense of itself and


Contract via either (1) separate Owner to Subcontractors
lawsuit; or (2) third party action pursuant to indemnity
agreement in Subcontracts
Owner General Contractor Subcontractors A & B

Tenders defense to GC
pursuant to indemnity
agreement in General
Contract GC tenders its defense to its
CGL carrier for contractual Tenders its defense to Subcontractors tender
liability coverage Subcontractors’ CGL policies their defense to their CGL
as AI on Subcontracts carriers for contractual
liability coverage

GC’s CGL Insurer


Tenders defense to GC’s CGL insurer
pursuant to AI endorsement on GC’s
CGL policy, as required by General
Contract
Claims that GC’s policy is excess to
Subcontractors’ policies Subcontractors’ CGL
Tenders defense to Subcontractors’ CGL insurers
Insurers
pursuant to AI endorsements on Subcontractors’ CGL
policies as required by Subcontracts between General
Contractor and Subcontractors