How To Defend Against Risk Transfer Contract Clauses
Property owners rely on crucial relationships with contractors, subcontractors and vendors. In these relationships, agreements are made and written contracts are negotiated. However, a growing trend involves contracts in which the contractors and vendors are assuming the liabilities of others. Savvy property owners recognize the benefit of transferring potential liability to others and negotiate contracts to their advantage.
Omissions: Are You Covered? Probably Not…
Increasingly, contracts presented by general contractors contain clauses that create liability for ‘omissions,’ not just ‘commissions.’ An example of how this can impact your company: You might be charged an exorbitant amount — even more than the $$ amount of your services — if your sweeper broke down and so caused a work stoppage on the job. Your insurance policies will typically NOT cover this type of situation!
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