Contract based insurance coverage is now more prevalent than ever in the commercial insurance market.
From a sub-contractor seeking to fulfil a work order on site, to building contractors working on a principle controlled construction program or white collar consultants engaged for advice-only services, all parties are likely to be engaged on a contract for service in written form.
In principle, this in itself is no issue from an insurance perspective. The conflict, or concern for the party engaged exists in the detail written into the contract as a means of risk transfer by the contract issuer. Most commercial contracts contain risk transfer clauses or conditions that are likely to prejudice your own contractual position with your insurer, triggering conditions in your policy in the event of a claim which potentially render your policy null and void. It is important to remember that your relationship with your insurer is also contractual in nature ( i.e conditions each party are bound to by the policy wording ) and the contract issued by your insurer contain conditions which do not mirror those within commercial contracts ( even Australian Standard contracts ).

Examples of the more obvious conditions are ‘hold harmless’ or ‘waiver of subrogation’ clauses. What is now of more concern is the increased prevalence of contractual risk transfer obligations that simply cannot be met by your insurance program.

To enable our clients to adequately assess the impact of proposed contractual conditions, CIS provide a free legal review of your policy conditions in comparison to any given contractual conditions which your company may considering entering. We provide review of the insurance and indemnity conditions by qualified legal advisors at no charge to you, no matter how many contracts you seek to enter while a client of our business. We can also assist in facilitating review of the remaining clauses of your contract, by qualified commercial lawyer, on a fee basis.