Joint Venture: ALIGNED’s Term of the Day
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One word can have many different meanings. That’s why ALIGNED is committed to helping demystify the often complex terms commonly found in business insurance policies. By helping to bring clarity to insurance terms, we’re working to align our understanding of risks, coverages and policies with the needs of Canadian businesses.
Joint venture is today’s term of the day.
The International Risk Management Institute (IRMI) provides the following definition for joint venture: “a business relationship in which two or more persons combine their labour or property for a single undertaking and share profits and losses equally, or as otherwise agreed.
General liability policies normally do not cover liability arising from joint ventures unless they are scheduled as an insured. A manuscript endorsement can sometimes be added to handle this exposure. Otherwise, specific coverage arrangements must be made whenever the insured becomes involved in a joint venture.” 1 Similarly, directors and officers policies also do not cover liability arising from joint ventures.
Related Matters: IRMI: When Is an Insured Not an Insured?
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An ALIGNED advocate can provide expert advice on how to properly insure your joint venture. Talk to one of our advocates today about how we can help you secure the best products, services and insurance solutions for your business.
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Sources: 1 IRMI.com