Contracts requiring one or more of the parties to indemnify the other and to provide insurance to support the indemnity obligation are ubiquitous. They can be found in construction contracts, supply chain agreements, master service agreements, work orders, IADC daywork drilling contracts, other upstream E&P agreements, equipment leases, real estate leases and many other agreements.

Analysis often is convoluted; someone trying to enforce (or defeat) these obligations must look at the contract itself, one or more insurance policies and state statutes and decisions from multiple states.

This article and another to follow briefly survey additional insured provisions and contractual indemnity provisions in standard liability insurance policies. This installment addresses additional insurance requirement.