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Vicarious liability vs Principal’s liability

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February 18, 2021

Principal clients need to consider their own policy to respond to their unique liabilities rather than relying on cover held by contractors.

When undertaking any construction project, principal clients need to carefully assess whether their potential liabilities arising out of the project are adequately covered by insurance. This paper discusses the insurance options available to principals, potential uninsured exposures certain insurance options can leave, and the steps principals may need to take to fill these exposure gaps.

When the contractor arranges public liability insurance, principals need to assess the level of coverage through that policy, and to analyse the exposures that aren’t contractually required to be covered.

Vicarious liability vs Principal’s liability looks at the possible issues for principals under common New Zealand contracts and identifies where the contractor is not required to indemnify a principal, as well as details excepted risks.

You can download the full paper below.

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Vicarious liability vs Principal’s liability PDF .2 MB
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Tony Seto
National Manager, Construction

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