Joint Insurance – Are You Covered?

It is becoming increasingly common practice, particularly in the construction industry, for parties to agree that a single project insurance policy will cover all the parties interested in a project. 

Insurance has a key role in facilitating projects, obtaining funding, but also quantifying and identifying the parties' legal risk to protect their own businesses.  A normal insurance policy allows subrogation which means that if you are insured and you have to pay damages to somebody, but part of those damages were caused by a third party, your insurer can effectively step into your shoes and pursue the third party for a contribution.  In a project insurance policy, it is common to waive those subrogation rights, so all of the co-insured parties cannot claim against each other and therefore the risk is shared across the parties within a project without complicated allegations of blame.