You have a new exciting business opportunity a contract comes across your desk so what next …
While contracts are a necessary part of business, you can expose yourself to potential financial difficulty by entering into contracts without necessarily appreciating the consequences of what is being signed.
Armstrong’s advises not to sign any contracts without checking with us first to determine if your insurance program will cover the additional liabilities that you are likely to assume by signing – or if you are able to obtain additional cover in the market for these liabilities. Some contracts have conditions in them that are practically impossible to have agreed by insurers and consequently if you sign such contracts they could jeopardise or even invalidate your insurance.
While we cannot provide legal advice, we can provide professional insurance advice and provide you with valuable input on the scope of cover your current insurance program has and what needs to be done to comply with the insurance requirements of the contract.
Armstrong’s has 3 main tips for businesses:
- Read and understand the implications of the contract;
- Provide copies of all your contracts and agreements to us to review and make comment on before signing the contract;
- If there’s any part of the contract you don’t understand don’t sign it without seeking advice first from your Accountant, Solicitor and us.
Armstrong’s offers this contractual review as part of our ongoing service to clients.