Don't Sign That Contract!
How many times do you sign a contract without reading through all the fine print? Are there any clauses in the contract that affect your insurance coverage?
Do you know what "hold harmless" and "indemnity" clauses mean on a contract?
In order to adequately protect your business and assets it is vital that prior to signing you submit ALL CONTRACTS to us so we may assist you appropriately as your insurance broker. The purpose of this is to ensure that your insurance program is adequate to cover the liabilities that you may assume by signing contracts.
Should you sign contracts without a professional review it is possible that you are putting your business and personal assets at risk. As your insurance broker we are be able to advise on the insurance coverage that you have, and arrange for a third party to complete any legal reviews that may be required and fall outside of our area of expertise.
You should be aware that in some cases it is not commercially possible to obtain insurance cover for some of the more onerous clauses that can often be included in contracts. In these cases contracts should be re-negotiated to mitigate your uninsured risk exposures and to allow for a viable insurance program to be put in place.
We understand the commercial reality when you are under pressure to win a contract. However remember - once a contract is signed it can be difficult or impossible to re-negotiate certain conditions to allow you to obtain cover. This can leave you exposed to uninsured claims.
Each month we will provide a tip sheet to help you with understanding contractual liabilities. This month's tip sheet is about indemnity and "hold harmless" clauses in contracts.
Tip Sheet 1 - Indemnity & Hold Harmless Clauses in Contracts
Do you know what "hold harmless" and "indemnity" clauses mean on a contract?
In order to adequately protect your business and assets it is vital that prior to signing you submit ALL CONTRACTS to us so we may assist you appropriately as your insurance broker. The purpose of this is to ensure that your insurance program is adequate to cover the liabilities that you may assume by signing contracts.
Should you sign contracts without a professional review it is possible that you are putting your business and personal assets at risk. As your insurance broker we are be able to advise on the insurance coverage that you have, and arrange for a third party to complete any legal reviews that may be required and fall outside of our area of expertise.
You should be aware that in some cases it is not commercially possible to obtain insurance cover for some of the more onerous clauses that can often be included in contracts. In these cases contracts should be re-negotiated to mitigate your uninsured risk exposures and to allow for a viable insurance program to be put in place.
We understand the commercial reality when you are under pressure to win a contract. However remember - once a contract is signed it can be difficult or impossible to re-negotiate certain conditions to allow you to obtain cover. This can leave you exposed to uninsured claims.
Each month we will provide a tip sheet to help you with understanding contractual liabilities. This month's tip sheet is about indemnity and "hold harmless" clauses in contracts.
Tip Sheet 1 - Indemnity & Hold Harmless Clauses in Contracts
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