You may be asked to arrange public liability insurance to comply with a commercial contract you have entered into – including a lease, licence agreement, construction contract, subcontract, supply agreement, loan agreement, services contracts, manufacturing contract and many others.
Ensuring you have the correct cover is imperative. Very broad indemnities will almost always trigger the ‘assumed liability’ or ‘contractual liability’ exclusion in a public liability policy especially if the indemnity clauses in the contract do not provide for proportionate liability. If this happens, it is unlikely your standard Public Liability will cover you for the entire amount of a claim made by the principal in reliance on the indemnity in the contract.
Some contractual indemnities are very broad, requiring you to assume liability for loss or damage that is not within your reasonable control. They can also extend to make you responsible for loss or damage not actually caused by you, or caused by a person that you are not usually responsible for at law, or that occurred when you were “on site”, even though you were not responsible for the incident.
There are numerous Public Liability covers available but a large proportion of them will not cater for the cover requested under these contracts.
O’Regan Group Insurance Brokers (and Alpha Insurance Brokers) take the time to understand your business, its contractual obligations and arrange the broadest cover available. This together with our Contract Review Service ensures your business is fully protected at little or no extra cost to you.