Sunday, November 18, 2018

Delaware Business Insurance Update from CNC Insurance Associates "Don't Sign That Contract Until You Know The Risk Transfers" November 18 2018

I continue to see business owners sign contracts without knowing how much risk they may be taking on. Contracts are a part of business and you have no choice but to sign them however there are things you should know to reduce these risks.

Understand the contracts you sign in your business !!
  1. Contracts may transfer risk to you that you were not expecting
  2. Make sure you know who is requesting to be an insured on your policy, from the contract
  3. Watch indemnity clauses and hold harmless clauses as they may expose your business to more risk than what is insurable
  4. Many of the terms and conditions of contracts last many years after the contract is complete. Understand your long term risks.
  5. Broad indemnity contracts can impose your business to protecting the interests of parties not part of the contract, Read the fine print
 Until next time be careful out there and know your risks.

G. Kevin Nemith   President CNC Insurance Associates/Hilb Group