Additional liability can be taken on by a business when signing a contract that can lead to issues with your insurance coverage. This is known as contractual liability. For more information, please visit our Contractual Liability Essentials page.

Before entering into any contract, it is essential to carefully review the insurance clauses to ensure you meet the required expectations. Many engineering contracts, particularly those involving government bodies, large commercial projects or principal contractors, will specify certain types of insurance, coverage limits, and policy conditions that must be met. 

Key things to look for include: 

• The type of insurance required, such as Professional Indemnity or Public Liability
• The minimum sum insured or limit of indemnity you are expected to carry
• The policy wording requirements, including clauses like retroactive cover or run-off periods
• Any request for naming other parties as an insured or waivers of subrogation
• Requirements for territorial limits or jurisdiction, especially if working across multiple states or countries 

If your policy does not meet the contractual requirements, you may be in breach of the agreement, which could result in delayed payment or affect your ability to make a claim. 

We recommend sending your contract to us before it is executed. We can have contracts reviewed either by the relevant insurer or through our third-party legal partner. This ensures that the insurance clauses can be reviewed, allowing us to determine whether your policy meets the contract’s expectations. 

At Webber Insurance, we understand the complexities that signing contracts can have with your insurance program. Contact us today with any questions you might have.