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Attorney2020, Attorney
Category: Business Law
Satisfied Customers: 2578
Experience:  I am a practicing attorney. I have experience in business law, bankruptcy, real estate law and estates.
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The insured's name is LLC #1 In an professional liability

Customer Question

The insured's name is LLC #1
In an professional liability insurance policy there is an entity exclusion endorsement that states: exclusion of the business operations of; or any services performed by or on behalf of, the following listed entity: Corporation #1
Question: Can Corporation #1 sub contract work to LLC #1 and will LLC#1 not be excluded from coverage?
To consider in answering the question is there a distinct legal difference between sub contracting and on behalf of?
Thank you, JP
Submitted: 1 year ago.
Category: Business Law
Expert:  Attorney2020 replied 1 year ago.
On behalf of would fall into sub contracting fork with Corporation #1 and it would be hard to argue that the intent behind the contract was not to avoid such a scenario of Corporation #1 sub-contracting work to LLC#1. The terms seem clear and the reasonable interpretation of contract terms is the law. However, you could take a risk and see what happens but the insurance company would definitely not cover the claim under the suggested scenario and you would have to bring a breach of contract claim to gain insurance coverage for such a scenario. I hope that helped. Please ask any follow-up questions. Please rate my answer so that I may be credited for my time. Thank you.
Expert:  Attorney2020 replied 1 year ago.
I hope that helped. Please ask any follow-up questions. Please rate my answer so that I may be credited for my time. Thank you.
Thank you in advance for your cooperation.

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