When the contract mandates specific coverage, be sure you have it.

Designers were found to have breached their contract to procure insurance naming an Ohio hospital as additional insured on the designer’s General Liability coverage.

The insurance required under contract was to provide coverage for bodily injury “caused by a biological agent or bacteria”.  In fact, the policy had a broadly worded pollution exclusion.  The claim arose when a newly constructed hospital experienced an outbreak of Legionnaires’ disease.

The Ohio Court ruled that “NBBJ is in breach of contract for procuring a policy with the “Biological Agents” exclusion”.

The case is Premier Health Partners V. NBBJ, LLC, 2015 Ohio 128 – Ohio: Court of Appeals, 2nd Appellate Dist. 2015