New Motor Carrier Coverage form – Affect of an Indemnification Agreement

Could an indemnification provision in a lease agreement affect coverage?
Answer: Perhaps.
Section II(B) covers exclusions of coverage. Specifically, the New Form states that the policy does not apply to certain designated situations. Included in those situations is number 4:

Employee Indemnification and Employer’s Liability. The policy does not apply to bodily injury arising out of and in the course of employment by the insured or while performing duties related to the conduct of the insured’s business. The policy also does not apply to any spouse, child, parent, or sibling of that employee that is injured while on the job.

This exclusion to coverage applies whether the insured may be liable as an employer or in any other capacity AND to any obligation to share damages or repay someone else who may damaged because of the injury.

The exclusion  to coverage has two exceptions (don’t you love exceptions to exclusions? It’s like a double negative):

The first is that coverage does apply to bodily injury to domestic employees who are not entitled to worker’s compensation.

The second is that coverage applies to liability assumed by the insured under an insured contract.

I know all of this is frustrating, but I will soon past the differences between the old and new forms.

Take care.


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