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Insurers who insure suppliers' liability include in their insurance a guarantee that forces the main contractor to obtain proof that all its subcontractors are insured. In an important case, North American Capacity Insurance Co. v. Claremont Liability Insurance Co. Court of Appeal, Second District, 177 Cal.App.4th 272, No. B207878 (Cal.App. Dist. 2 08/04/2009), which was about a clause that was seldom sued, the California Court of Appeal enforced such an agreement and issued a warning to all general contractors who do not follow similar guarantees that they can eliminate their own coverage. In this case, the guarantee or condition required the insured to follow their general business practice in order to obtain harmless contracts and insurance certificates from their independent contractors. The insured failed to do so and tried to enforce the agreements, which unsuccessfully claimed that it did not have to comply with the guarantee.
The insurance industry also uses similar guarantees that require each independent contractor to call the main contractor, owner, and / or developer as additional insured.
If the main contractor does not have insurance certificates from each independent contractor at the time of the start of the work and during the entire construction, the insurance is not enforceable.
Each main contractor, developer and subcontractor using subcontractors must be sure to obtain the certificates required by similar policy terms. Failure to do so can be devastating.
The Court of Appeal applied fixed doctrines when it came to its decision regarding the interpretation of an insurance policy. Such an interpretation, in California, is a legal issue that the Court of Appeal can consider as if it were a district court. [ Powerine Oil Co., Inc. v. Superior Court (2005) 37 Cal.4th 377, 390; AIU Ins. Co. v. Superior Court (1990) 51 Cal.3d 807, 818)] Although insurances have special features, they are still agreements to which ordinary rules of interpretation apply.
He also acts as an arbitrator or mediator for insurance-related disputes. He practiced law in California for more than 44 years as an insurance and claims management attorney and more than 54 years in the insurance industry.
He is available at http://www.zalma.com and email@example.com. Mr. Zalma is the first recipient of the first annual Claims Magazine / ACE Legend Award. For the past 53 years, Barry Zalma has devoted his life to insurance, insurance claims and the need to defeat insurance fraud. He has created the following library of books and other materials to enable insurers and their indemnity staff to become insurance professionals.
Go to the podcast Zalma On Insurance at https://anchor.fm/barry-zalma; Follow Mr. Zalma on Twitter at https://twitter.com/bzalma ; Go to Barry Zalma videos at https://www.rumble.com/zalma; Go to Barry Zalma on YouTube- https://www.youtube.com/channel/UCysiZklEtxZsSF9DfC0Expg; Go to Insurance Claims Library-https: //zalma.com/blog/insurance-claims-library/ T the last two issues of ZIFL are available at https://zalma.com/zalmas-insurance-fraud- letter -2 / podcast now available at https://podcasts.apple.com/us/podcast/zalma-on-insurance/id1509583809?uo=4