There is an Insurance clause in this contract, that I am just not understanding.

Basically, there is a contract being signed between a company in Colorado, and a software development company in Kentucky. The contract that was sent from CO had an insurance paragraph, that basically said that the development company had to add the company from CO to their business insurance. Is this normal? The CO lawyer said that it was standard in contracts, and yet, I have searched google for days and have found absolutely nothing close to this at all. Could someone help? I would be glad to forward the actual paragraph to someone if they are willing to take a look at it to see the exact language used.

Sure. It probably says something like, "KY Co will include CO Co , naming them additional insured on the general liability with respect to their interest in KY co's operations performed on their behalf" or some such.

It's normal. The KY company, their general liabiltiy carrier will probably do this - depending on the type of operations - for $50 to $250.

It IS standard contract language. Ask your agent, they'll back me up on this.

It is not uncommon for one company or person to be listed as an additional insured. This is to protect the CO company from any liability that could be traced back to the KY company. Unless the risk is high there will usually be no additional premium. You should talk to your insurance agent for more information. The agent will know more about your situation than anyone here.

~~If you are talking about a construction contractor it is very common. You need to call your liability insurance carrier and request for the necessary company to be added on during the job. They will send you a paper with your company and the other added to the policy. There should be no charge for this.~~

Well, I'm not sure what your specific situation is. But I can tell you that whenever a company has insurable or financial interest in another company, then it needs to be added to the insurance policy. Thats just a rule of thumb. Not something to be worried about.

I wish my idea might be helpful,though you should make the judgement by yourself.I have got good experience at this good resource.
http://insurance.freetipz.info/insurance...