We regularly review contractual documents on behalf of our clients.
In today’s overly litigious world, many contracts contain onerous conditions that if accepted can render your insurance policies null and void.
The types of documents that we usually review are;
- Leases for commercial properties – many new leases contain provisions that insurers will not accept;
- Contracts for the supply of goods and services – in Western Australia particularly, the contractual requirements of the large mining companies and mining services companies often contain conditions that insurers will not accept;
- Tender documents – many tender documents set out the insurance requirements of the principal. If these are not reviewed prior to submitting a tender and you win, you are bound by those terms.
We believe it is better to review these documents before signing them. You may not be able to negotiate out of them, however you will know the risks that you are accepting and can make an informed decision.
“There’s no joy in winning a contract only to find that the cost of complying with the insurance requirements is more than the profit you expect to make.”