Where liability sits.
WHY IT MATTERS
Contracts determine who bears which risk.
WHAT TO WATCH FOR
Unlimited liability Broad indemnities Obligations you cannot meet Warranties beyond what you can deliver
THE UNLIMITED LIABILITY POINT
An open-ended obligation can exceed the value of the work substantially.
Take advice before agreeing to one.
WHAT TO SEEK
A liability cap, proportionate to the contract value Exclusion of indirect losses Clear scope, so obligations are bounded
WHAT TO CHECK
Whether your insurance would respond to the liability you are accepting.
Ask your broker.
THAT IS FREQUENTLY OVERLOOKED
Agreeing to liability your cover excludes leaves you personally exposed.
WHAT TO ESTABLISH
What the customer requires by way of insurance Whether you have it
WHAT TO PUT IN YOUR OWN TERMS
Reasonable limits on your liability.
Take advice on what is appropriate and enforceable.
WHAT NOT TO DO
Sign terms without reading, because the customer is large.
Our contracts articles cover this.
