THE BOURNE FIRM
Understand the difference. An indemnification provision requires the other party to a contract to pay you in certain circumstances (for example, as a result of the of recklessness of the other party). An insurance provision, if properly structured, requires payment to you under the other party's insurance policy as a result of the other party's conduct.
Be additional insured. If you are not an additional insured, then your premiums may increase and you may not have the right to seek payment from the insurance company under the other party's insurance policy.
Verify financial strength. If you are named as additional insured, but the insurance company is not of sufficient financial strength, then you similarly may not be paid. Verify that the provision for insurance includes a mandatory minimum rating for the insurance company's financial strength.
Understand insurance scope. If your intent is that insurance pay contractual obligations in addition to indemnification obligations, be certain that the scope of the insurance provision is not limited in this regard. A limit on insurance to indemnification obligations, in some states, results in a legal prohibition on payment to you for your simple negligence.