Business Insurance Update

Some property owners, general contractors, and subcontractors are using a novel approach to limit liability in contracts.  The contract seems normal, and has the standard indemnity and insurance wording that protects you in the event of a loss.  Nevertheless, here is what to watch for; the other party places in the contract a sentence that limits liability to a stated amount; the client or company still agrees to indemnify and hold you harmless, but the stated amount may override the insurance contract.

The certificate may show full policy amounts and correct coverage. When a claim occurs they will attempt to rely on the contract to limit their indemnification obligation.

It is now more important than ever to read all contracts thoroughly and have them reviewed by an attorney or a qualified professional.

All contracts should have indemnity language that is specific to each party’s negligence, additional insured wording, and required certificates of insurance prior to work beginning.

This entry was posted on June 22, 2016 at 5:18 am. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

Posted in Church Insurance Church Risk Church Safety by Scott Stuart Comments Off on Reverse Risk Transfer – Contractors Be Aware