Webber Insurance Services Webber Insurance Services
Talk to an insurance broker

1300 932 237

Menu
  • Home
  • About
    • About Us

      Read more about our Business and Partners.

      Find out more about the team at Webber Insurance, what our clients say and who we partner with to enable us to provide you with superior insurance products.

      Contact Us
      • About Us
      • Careers
      • Compliance Hub
      • Webber Insurance Group
      • Steadfast Insurance
      • Testimonials
    • Close
  • Blog
    • Blog Posts & Ultimate Guides

      Read our latest blog posts plus get further information on key topics in our ultimate guide pages.

      At Webber Insurance, we work to expand our clients understanding of a wide range of business risk management topics

      Latest Blogs
      • Contractual Liability Essentials
      • Encryption Guide for Your Devices
      • Data Breaches In Australia
      • Risk Management Tips
      • The Ultimate Guide to Cyber Insurance
      • Ultimate Guide – Data Breach Notification
    • Close
  • Products
    • Insurance Products

      We will find you the right insurance product for your business.

      Use a qualified Insurance Broker to ensure that you have an insurance program that is tailored to your specific needs.

      Quick Quote
      • Asbestos Liability
      • Building Indemnity Insurance
      • Business Insurance
      • Commercial Legal Protection Insurance
      • Contract Works Insurance
      • Contractors Insurance
      • Corporate Travel Insurance
      • Cyber Insurance
      • Design & Construct Insurance
      • Excess Liability Insurance
      • IT Liability Insurance
      • Management Liability Insurance
      • Office Insurance
      • Plant & Equipment Insurance
      • Professional Indemnity Insurance
      • Public & Products Liability
    • Close
  • Occupations
    • Occupations

      We can source insurance for all kinds of occupations.

      As a specialist insurance broker, we have access to a range of local and overseas insurers who are capable of assisting with risks; large or small for all occupations

      Quick Quote
        • Accounting Insurance
        • Architect Insurance
        • Building Designer Insurance
        • Building Inspector Insurance
        • Consultants Insurance
        • Energy Raters Insurance
        • Engineers Insurance
        • Environmental Consultant Insurance
        • Hard To Place Insurance
        • IT Contractors
        • Interior Designer Insurance
        • Labour Hire / Recruitment
        • Project Management Insurance
        • Real Estate Agent Insurance
        • Tradies Insurance
    • Close
  • Schemes
    • Schemes

      Insurance schemes for various occupations and industries.

      Webber Insurance has a number of insurance schemes that we have developed for specific industries and occupations.

        • ABSA TPA Assessors
        • ATTMA Insurance
        • Building Designer Association Australia (BDAA)
        • Building Design Queensland (Formerly BDAQ)
        • Building Designer Insurance
        • Design Matters National (Formerly BDAV)
        • Energy Raters Insurance
        • Interior Designer Insurance
    • Close
  • FAQ’s
  • Get a Quote
    • Get A Quote

      We work to simplify the insurance process for our clients.

      Complete one of our online proposal forms today to receive a quote for your insurance requirements

      Get A Quote
      • Accountants
      • Architects
      • Asbestos Liability
      • BAS Agent
      • Bookkeeper
      • Building Designer
      • Building Inspector
      • Business Insurance
      • Commercial Legal Expenses
      • Consultants
      • Contract Works – Annual
      • Contract Works – One Off
      • Contractors Insurance
      • Corporate Travel
      • Cyber Insurance
      • Energy Raters
      • Engineers
      • Environmental Consultant
      • Interior Designers
      • IT Liability
      • Labour Hire
      • Management Liability
      • Office Insurance
      • Plant & Equipment
      • Professional Indemnity
      • Project Manager
      • Public Liability
      • Real Estate Agent
      • Tax Agent
      • Tradies
    • Close
  • Claims
  • Contact
  • Pay Premium
Webber Insurance Services Webber Insurance Services
Call Menu
  • Get a Quote
  • Make a Claim
  • Products
    • Asbestos Liability
    • Building Indemnity Insurance
    • Business Insurance
    • Commercial Legal Protection Insurance
    • Contract Works Insurance
    • Contractors Insurance
    • Corporate Travel Insurance
    • Cyber Insurance
    • Design & Construct Insurance
    • Excess Liability Insurance
    • IT Liability Insurance
    • Management Liability Insurance
    • Plant & Equipment Insurance
    • Professional Indemnity Insurance
    • Public & Products Liability
  • Occupations
    • Accounting Insurance
    • Architect Insurance
    • Building Designer Insurance
    • Building Inspector Insurance
    • Consultants Insurance
    • Engineers Insurance
    • Energy Raters Insurance
    • Environmental Consultant Insurance
    • Interior Designer Insurance
    • Labour Hire & Recruitment Insurance
    • Real Estate Agent Insurance
    • Tradies Insurance
  • Schemes
    • ABSA TPA Assessors
    • ATTMA Insurance
    • BDAA
    • BDAWA
    • Building Design Queensland
    • Design Matters National
    • Energy Raters Insurance
  • Contact
  • FAQ’s
  • About
    • Testimonials
  • Blog
    • Contractual Liability Essentials
    • Data Breaches In Australia
    • Encryption Guide
    • The Ultimate Guide to Cyber Insurance
Aug 13
Image showing a warning about contractual liability. The background is grey with a faint grid pattern. On the left, there's an orange envelope with the word "STOP!" written in red. On the right, text reads: "Contractual Liability: Don't sign that contract without speaking with your broker first.

Contractual Liability: Don’t Sign That Contract Without Speaking With Your Broker First

  • August 13, 2021
  • Chris Webber
  • Insurance News

Stop! Don’t Sign That Contract Just Yet

If you are a business owner, signing contracts is part and parcel of the daily running of your business. Whether it be contracts for firms providing goods or services for your business, or your business providing goods and services for another firm, it is not uncommon to frequently enter into contracts with other businesses.

What most people do not consider however, is the potential risk you are placing upon both your business and personal assets in doing so.

What Is Contractual Liability?

Due to its complex nature, Contractual Liability is an area of insurance that is not easily understood.

In order to explain one aspect of contractual liability, let’s take a look at a brief example.

You’re a sub-contractor who has won a tender to carry out work on the construction of a new building. You have been engaged by the principal contractor who has asked you to sign a contract for the works provided. The contract will typically address;

  • Who the contract is between
  • Scope of works
  • Your responsibilities

The contract will also discuss the ‘General Conditions’ or the ‘fine print’ and this is where you can get caught out.

Being a contractor, it is more than likely that you already hold your own insurance policies such as public liability and professional indemnity.

What is little known by businesses is that with a number of insurers, your own insurance policies are only applicable in the absence of any contract, guarantee, warranty or agreement.

This essentially means that any contract containing wording or clauses, particularly an indemnity clause, could nullify your own insurance policies. This is what a typical exclusion looks like on a Public Liability policy wording;

3.6 Contractual Liability

which has been assumed by You under any contract or agreement that requires You to:

(a) effect insurance over property, either real or personal.

(b) assume liability for, Personal Injury and/or Property Damage regardless of fault; provided that this exclusion shall not apply with regard to:

(i) liabilities which would have been implied by law in the absence of such contract or agreement; or

(ii) liabilities assumed under Incidental Contracts; or

(iii) terms regarding merchantability, quality, fitness or care of Your Products which are implied by law or statute; or

(iv) liabilities assumed under the contracts specifically designated in the Schedule or in any endorsement(s) to this Policy.

Keep in mind that every insurance policy is different and the above excerpt is a generic sample only.

Don’t Put Pen To Paper Until You Have Spoken To Your Broker

The best practice for ensuring that you are not subject to contractual liability is to always consult with your insurance broker prior to signing any contracts.

Your insurance broker will review the contract to determine what implications this may have on your existing insurance policies. Furthermore, they will also arrange for specialist third party advice to complete any necessary legal reviews.

Without doing so, you may unknowingly be assuming the liability of the other contracting party in the event of claim. For example:

Let’s assume that Party A is you as the sub contractor, Party B is the main contractor overseeing the construction project and Party C is principal construction company.

By signing a contract with an indemnity clause, Party A may be agreeing that if Party B is sued by Party C, Party A will be responsible for indemnifying Party B for the costs that may result from Party C’s claim.

Having to cover the costs associated with a claim of this nature may be potentially devastating for a small, family owned business.

What If I Have Already Signed A Contract?

If you have already gone ahead and entered into a contract prior to having your insurance broker review the relevant clauses, it is still recommended that you do so.

Your broker can then point out any areas of potential contractual liability so as to have an understanding of your current exposure.

This main piece of advice to take away from this example is to always have your insurance broker review any contracts your business may be entering before signing to avoid any nasty surprises in the event of a claim.

If you would like some further information and advice relating to contractual liability, please contact us.

DISCLAIMER: The content discussed in this blog is intended for the provision of general insurance related information only and does not take into consideration unique personal circumstances. Please contact us to discuss your personal insurance requirements before acting upon advice or purchasing any products. 

  • Facebook
  • Twitter
  • Reddit
  • Pinterest
  • Google+
  • LinkedIn
  • E-Mail

About The Author

Chris Webber is the Director of Webber Insurance Services. Chris has been in the insurance industry for 20 years and is an SME business insurance specialist. The information on this blog and website is of a general nature only. It does not take into account your individual financial situation, objectives or needs. You should consider your own financial position and requirements before making a decision. We recommend you consult a licensed insurance broker in order to assist you.

Comments are closed.

Recent Posts

  • Insuring Principal Supplied Materials
  • Insurance Cover for Existing Structures: A Guide for Builders
  • Understanding Policy Parameters in Contract Works Insurance
  • Understanding Contract Works Insurance: Turnover (Transfer) vs. Run-Off Policies
  • Single Project vs. Annual Contract Works Insurance Policies: Understanding the Differences
  • Commercial Drone Insurance: Everything You Need to Know
  • Daniel Webber Named Elite Broker for 2024
  • What Australia’s 2023–2030 Cyber Security Strategy Means for You
  • Securing Customer Data for Small to Medium Businesses [Australian Cyber Security Centre]
  • ‘Active’ Cyber Insurance – The Future for Small Businesses

Contact us

  • Make an enquiry
  • Get a Quote
  • 1300 932 237
Webber Insurance Services
  • Terms of Use
  • Privacy Policy
  • Financial Services Guide
  • Complaints & Disputes Handling
  • Code of Practice
  • Compliance Hub
© Copyright 2025 Webber Insurance Services

328A Magill Road, Kensington Park SA 5068

Webber Insurance Services Pty Ltd | ABN: 88 648 036 929 | CAR No: 413233

Authorised Representative of Webber Insurance Group Pty Ltd | AFSL: 488465 | ABN: 70 612 339 894 All rights reserved

Get a BDAA Insurance Quote

New insurance quotes or renewals for BDAA members who provide building design or energy rating (or similar) services.

"*" indicates required fields

BDAA Insurance Renewal
Energy Rater Insurance Renewal
New Energy Raters Insurance Quote
This field is for validation purposes and should be left unchanged.

Request Insurance Advice

Have a question or need advice from a qualified insurance broker?