What it does
CG 24 26 replaces the "insured contract" definition. Paragraph f. (other contracts under which the insured assumes another party's tort liability) now applies only if the bodily injury or property damage is caused, in whole or in part, by the named insured or those acting on its behalf, and only to the extent the assumption of liability is permitted by law.
Who needs it
Common on contractor and service accounts. Indemnity clauses that make the insured pay for the indemnitee's sole negligence lose coverage under this endorsement.
Key provisions and limits
- Leases of premises, sidetrack agreements, easements, municipal ordinance obligations and elevator maintenance agreements remain insured contracts (with the base form's exceptions).
- The railroad, architect/engineer/surveyor and professional services carve-outs from the base definition still apply.
Quoting and selling notes
- Compare with the client's indemnity clauses: broad-form indemnity is uninsured under this form.
- In states that bar broad-form indemnity the practical effect is smaller, but it still matters where intermediate-form indemnity is enforceable.
