Contracts – how boring!
That’s so often the first reaction when we’re signing up for a new service, a new job, an assignment or opportunity.
But they’ve been professionally written at some expense, and these days they’re often designed to pass as much responsibility onto us, and protect the issuer, as far as possible.
Recently I came across this little gem:
Your Insurance policies shall contain a provision that the insurance company shall have no right of recovery or subrogation against us or any Group Company
So what? you might ask..
Well, if an error that cause your client a loss is not your fault, but that of the company that you are contracted to, an Insurer may protect you by paying out on your behalf, but may then seek redress for this payout from the entity that made the mistake.
This helps keep your premium down and your Insurer recover any losses that weren’t your fault.
What this clause does is remove their right to do this against a party involved in the work, and whose mistake may have been the most significant reason for a loss.
Insurers will be very cautious when confronted with a clause like this, for obvious reasons. It will take some specialist work to research the market.
So if you have a Contract that requires Insurance, it’s worth having an expert take a look at it for you to make sure you’re properly covered.
