An insurance clause in a principal-contractor agreement that requires the contractor's public liability policy to note the principal as an interested party and to cover 'the respective liabilities of each of those parties to each other and to third parties' is not confined to liabilities arising under the contractual indemnity, but extends to cover the principal's liability for its own negligence. The existence of a separate indemnity for failure to insure (cl 43.4) supports the conclusion that the insurance obligation is supplementary to, not merely supportive of, the contractual indemnity. The observation in Erect Safe Scaffolding v Sutton at [166] is not a statement of principle and each insurance clause must be construed on its own terms.
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