04 June 2020

“You signed what!!!” Do you have the right cover, or are you exposed?

Are you risking your business and personal assets without even being aware?

Many of our clients are regularly asked to sign contracts with indemnities, warranties and other problem clauses. How much do you know about increasing your exposure by contractual liability and the IMPACT it can have on your insurance policies and even your assets?

Contractual liability issues are usually very complex and can affect a broad range of professions and policy types. To reduce the risk that this issue can pose to your business and personal assets, talk to us.

Not understanding the issues in this area can have considerable consequences for your own business and your insurance policies – cover could be reduced or worse, excluded.

As your insurance broker, we are able to advise on the insurance coverage that you have, and many of our clients have access to our contract review service, where our team of risk managers provide insurance reviews of consultancy agreements to advise on clauses likely to trigger exclusions in your professional indemnity insurance policy. If you need a greater level of assistance, or legal advice, we can refer you to our new subsidiary, informed Lawyers, who you can engage for legal reviews of consultancy agreements, including drafting and assistance with negotiations.

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. Be aware BEFORE you sign.

Services available through Planned Cover

  • Insurance advice – we can provide expert insurance advice to assist with contracts
  • Contractual liability Practice Guides
  • Planned Cover Professional Indemnity clients receive contract reviews by our Risk Management department called informed by Planned Cover, as part of their insurance placement

Services available through informed by Planned Cover

  • Risk Management guidance through over 50 Practice Guides
  • Contract review service—review of your consultancy agreement to identify clauses that raise a risk of triggering exclusions in your professional indemnity insurance
  • In-house seminars to train your team
  • Online CPD courses and webinars to educate you in the area of contracts, sub-consultancy agreements and other topics relevant to construction professionals
  • Subscriber resources such as example contracts and checklists

(many of our insurance clients receive the first three services as part of their insurance placement, and discounted pricing for the last two services)

This brief overview is to assist you in understanding some of the terms, implications and common considerations in contractual liability. However, there is so much more to know and everyone’s circumstances are unique, so please discuss the full details with your Planned Cover Account Manager in your state.