Priority Of Coverage. Changing Law.

Is priority of coverage among policies of insurance covering the same insureds and the same risk governed by the "Other Insurance" clauses of the policies or by the indemnification provision of the underlying contract?  Due to a shift in the law, there is good news for non-negligent owners and general contractors who can now rely on their indemnity provisions in their contracts in establishing risk transfer to subcontractors' insurers without regard to "Other Insurance" provisions.   

Until recently, priority of coverage among various policies of insurance affording coverage to the same insured or additional insured for the same risk was determined solely by examination of the "Other Insurance" provisions and endorsements of the applicable policies of insurance without regard to the contractual indemnification obligations of the underlying trade contract.  The courts previously drew a clear line between enforcement of insurance policy provisions between and among