CRIS CRIS Contract Analysis & Indemnification

Question 1

What is the purpose of an indemnification (hold harmless) clause in a construction contract?

Accepted Answer

To shift responsibility for certain losses or liabilities from one party to another

Answer

To set the payment schedule for the project

Answer

To define the project completion date

Answer

To specify the insurance limits each party must carry

Question 2

A 'broad form' indemnification clause in a construction contract requires the subcontractor to indemnify the general contractor for:

Accepted Answer

Losses caused by the subcontractor and the general contractor, including the GC's sole negligence

Answer

Only the subcontractor's own negligent acts

Answer

Property damage to third parties only

Answer

Workers' compensation claims filed by the subcontractor's employees

Question 3

Which type of indemnification clause is most commonly enforceable in states with anti-indemnity statutes?

Accepted Answer

Limited form (comparative fault) indemnity

Answer

Broad form indemnity

Answer

Intermediate form indemnity

Answer

Absolute indemnity

Question 4

What does an 'additional insured' endorsement on a subcontractor's general liability policy provide to the general contractor?

Accepted Answer

It extends the subcontractor's liability coverage to the GC for claims arising from the subcontractor's work

Answer

It makes the GC the primary policyholder, replacing the subcontractor

Answer

It eliminates the subcontractor's indemnity obligations under the contract

Answer

It provides the GC with direct access to the subcontractor's policy limits for any reason

Question 5

The ISO CG 20 10 endorsement adds an additional insured for liability arising from:

Accepted Answer

Ongoing operations only

Answer

Completed operations only

Answer

Both ongoing and completed operations

Answer

Products liability only

Question 6

A subcontract requires the subcontractor to provide 'primary and non-contributory' coverage to the GC. This means:

Accepted Answer

The subcontractor's policy pays first before the GC's own insurance, and the GC's policy will not share the loss

Answer

The GC's policy pays first and the subcontractor's policy contributes the remainder

Answer

Both policies share each loss equally regardless of limits

Answer

The subcontractor must purchase a separate policy solely for the GC's benefit