The following Insurance & Reinsurance guidance note Produced in partnership with Frank Thompson and Tomás Mac Gearailt of Eversheds LLP provides comprehensive and up to date legal information covering:
One of the purposes of a commercial contract is to allocate risk and liability through, for example, the provision of indemnities. In this context, one party may choose or be required to cover the liability allocated to it through a covenant to purchase or maintain certain insurance policies. Insurance also protects the party to whom the liability is owed so that if the party accepting the liability is unable to discharge its liability, the insurance should step in and pay subject to the terms and conditions of the relevant policies.
A crucial element of any insurance policy is the scope of risks which it covers. There will always be restrictions on the scope of coverage, including limit(s) to the sum insured, a defined period of insurance and various conditions which regulate the cover. There will also be procedures to follow in the event of a claim.
These guidance notes are designed to provide an overview of:
the main types of insurance which are relevant in the context of commercial contracts
common limitations and other matters that can be relevant in understanding the scope of coverage provided by such insurance policies; and
practical considerations in negotiating insurance clauses in commercial agreements and in achieving effective risk transfer to insurers
These notes are not designed to explain the law of insurance. In this
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