Problems in Relation to Contractual Liability Insurance

Of late years one of the very important developments with respect to Casualty insurance is the increasing practice of the use of Contractual Agreements. Until comparatively recently, contractual or "hold harmless" agreements were found simply in railroad sidetrack agreements and in some lease agreements. The contractual agreement is an indemnifying clause or clauses forming a part of a complete contract or the agreement may be a separate contract in itself, and may now be found not only in railroad sidetrack agreements and leases but also in contracts between an owner or a general contractor and various sub-contractors for the performance of specified work. It may be found in purchase agreements where the seller is required to hold the purchaser harmless with respect to material or commodities sold, or with respect to the erection and installation of that commodity. There may also be found "hold harmless" agreements in joint use contracts such as will be found in instances where the lines of a telephone or telegraph company may be strung on the poles of an electric light and power company, or vice versa.