The Doctrine Of Tort Immunity

The doctrine of tort immunity, simply stated, provides that a party to a commercial contract with another party may, in certain circumstances, be shielded from the consequences of its own negligence. The circumstances in which tort immunity may apply fall into two broad categories: covenants to insure and waivers of subrogation.

Covenants to Insure

Covenants to insure are frequently found in commercial contracts such as leases, rental agreements, or construction contracts. A common example is the commercial lease, where typically a landlord will covenant to place fire insurance. The tenant may or may not be required under the terms of the lease to pay the premiums, and may or may not be required to purchase its own insurance coverage in addition to that purchased by the landlord.