Indemnity To Principal Clause
This is a clause which requires a contractor to satisfy a clause within their contract, or the requirement for a contractor’s liability policy is extended so that the principal is indemnified as if he were the insured.
By this being included within your policy, if a claim were to be made against your principal for work you have done, your insurance policy would pay out as if the claim was against you.
Contractors working in the energy industry, particularly offshore, are often required to have this in their policy.
An Indemnity to Principals clause is automatically included in policies which are purchased through Offshore Insurance, at no extra charge.