Consultancy agreements often contain insurance and liability requirements.

These should ideally be reviewed before the contract is signed.

What insurance requirements are common? #

Contracts may specify:

• Professional Indemnity Insurance.
• Public Liability Insurance.
• Minimum policy limits.
• How long Professional Indemnity Insurance must be maintained.
• Certificates of Currency.
• Insurance requirements for subcontractors.
• Particular extensions or endorsements.

Does complying with the insurance clause mean all contractual liability is covered? #

No.

A contract can impose obligations that extend beyond what an insurance policy covers.

A Certificate of Currency confirms certain information about a policy at a point in time. It does not confirm that every activity or contractual obligation is insured.

What contract clauses can create insurance issues? #

Particular attention may be needed where a contract includes:

• Broad indemnities.
• Fitness for purpose obligations.
• Guarantees of outcomes.
• Unlimited liability.
• Liability for consequential loss.
• Responsibility for other parties.
• Liability assumed solely because of the contract.

Some Professional Indemnity policies restrict contractual liability beyond the liability that would otherwise exist at law.

Webber Insurance can assist with the insurance aspects of a contract. Legal advice should be obtained where interpretation or amendment of contractual terms is required.