Understanding Access Agreements: Insurance, Indemnification, and Repair Obligations

When negotiating access agreements, the conversation often starts with license fees. However, it is critical to focus on provisions concerning insurance requirements, indemnification obligations, and repair responsibilities. These elements safeguard all parties involved and help prevent potential disputes down the line.

Insurance Requirements

The insurance provisions should be clear, outlining the specific types and amounts of insurance that must be procured and maintained as a condition of access. Insurance requirements typically apply to all individuals and/or entities performing protective work or accessing the neighboring site.

Importantly, certificates of insurance alone are insufficient. It is essential to have the insurance policies reviewed by an insurance professional, as the certificate of insurance itself is not evidence of insurance coverage.

In fact, certificates of insurance state, at the very top of the document, the following language in bold capitalized letters:

THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER.

Additionally, the agreement must clearly identify all persons and/or entities to be named as an additional insured on the applicable policies, ensuring accuracy in naming these parties as additional insureds.

Indemnification Obligations

Indemnification clauses should clearly define when the obligation arises, the scope of the indemnity, and any exclusions. One common exclusion is liability for damages caused directly by the party seeking indemnification. These provisions should be comprehensive to ensure that all parties understand their obligations and protections.

Repair Obligations

Repair obligations must also be clearly defined, including the timeframe for completing repairs. The agreement should specify when repairs are to be carried out (i.e., immediately, within a set period of time after notice, or after access work is completed and protections are removed, etc.), as well as the remedies available to the owner if repairs are delayed or not performed to their satisfaction. Including these details helps to provide clarity and minimize the risk of disputes over repair work.

Addressing these core areas, among others, can help lead to smoother relations between neighbors and reduce the likelihood of conflicts arising during the work.

For more insights and assistance with access agreements, feel free to reach out to me at ??[email protected] or at ?? 212-624-4185

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