Question 64

Rather than depending on the Commercial General Liability Coverage Form, an owner may obtain security protection in any of the following ways EXCEPT relying upon case law interpretations of owner immunity.

An owner may seek various methods of security protection, but relying on case law interpretations of owner immunity is not a proactive measure and does not guarantee coverage.

A) Require the contractor to provide an OCP policy in the name of the insured

This option is a valid method for an owner to obtain security protection. An Owner-Controlled Insurance Program (OCP) policy provides coverage specifically for the owner, ensuring that they are protected against liabilities arising from the contractor's operations. Thus, this is a legitimate way for an owner to secure protection.

B) Rely upon case law interpretations of owner immunity

This option is incorrect because it does not provide any tangible security or proactive measure for the owner. Case law interpretations may offer some legal protections based on precedents, but they are not a method of obtaining insurance or guaranteed coverage. Therefore, it is not an effective way for the owner to secure protection.

C) Insert a hold harmless agreement in favor of the owner in the construction contract

A hold harmless agreement is a valid strategy for an owner to protect themselves from liability arising from the contractor's work. By including this clause in the construction contract, the contractor agrees to assume liability, thus providing the owner with an additional layer of security.

D) Add the owner as an additional insured on the contractor's general liability policy

Adding the owner as an additional insured on the contractor's general liability policy is a common and effective way to extend coverage to the owner. This ensures that the owner is protected under the contractor's policy for any claims that might arise from the contractor's operations, making it a sound method of security.

Conclusion

In conclusion, relying upon case law interpretations of owner immunity does not provide the owner with a proactive or concrete means of security, unlike the other options presented. The other methods, including requiring an OCP policy, inserting a hold harmless agreement, and adding the owner as an additional insured, are all effective strategies for ensuring liability protection. Thus, option B stands out as the only method that does not offer tangible security.