The Devil is in the Detail

Many businesses become involved in contractual arrangements which will require agreement and signature. These contracts will naturally cover a wide range of different circumstances including labour hire, work performance, rentals or lease of premises or equipment.

Most contracts impose certain requirements and many contain severe penalties for non performance. Contracts that relate to insurance may use the term ‘indemnify, ‘indemnity' or similar.

In some instances, insurance protection may not be available or if available, may be at a very high premium. An example is the lawn mower man who wanted the job of mowing the small, front lawn of a large conglomerate. To win the job, he was given a contract which he signed and then discovered that he could not obtain insurance to meet all the contract requirements. He also found the few conditions he could obtain insurance protection, to the level the contract required, would cost him more than he quoted to mow the lawn.

Make sure the terms of a contract are acceptable to you. Have the contract checked by your lawyer and insurance broker before you sign. Your signature is your agreement that you signed it based on an informed decision.