Insurance Business forum is the place for positive industry interaction and welcomes your professional and informed opinion.

Notify me of new replies via email
Insurance Business | 06 Jun 2013, 12:00 AM Agree 0
Brokers should be offering more advice on commercial contracts for SME clients, according to a insurance law specialist.
  • Seriously | 06 Jun 2013, 10:34 AM Agree 0
    A) I agree B) we push this issue with clients but guess what, they dont send. They can be latge or small companies, it doesnt matter C) maybe the law fraternity could shoulder some of the blame for foisting these contracts onto unsophisticated SME's
  • Paul Donnelly | 06 Jun 2013, 10:37 AM Agree 0
    My experience with most of these small contractors is that whilst you explain that their policy won't cover all the liabilities that they have signed on for with a contract they adopt a "It won't happen to me" attitude and just want to get to work and start earning some money. Even some larger contractors won't bother to try and renegotiate contracts to remove onerous conditions. Not much use Charmian blaming brokers when insurers won't cover the risks, particularly for smaller contractors and clients won't listen.
    There needs to be some control on the unfair contracts that principals wants sub-contractors to sign.
  • My Two Cents Worth | 06 Jun 2013, 12:04 PM Agree 0
    Lawyers are to blame for contracts being too complicated and making the poor contractor sign hold harmless agreements
  • Neil Hay | 06 Jun 2013, 02:42 PM Agree 0
    Realistically when has a multinational company agreed to alter or amend it's standard legal contract for an SME contractor.

    They wont becuase their own legal people will advise against it.

    Yet Charmian Holmes seems critical of the brokers.

  • Seriously | 06 Jun 2013, 03:00 PM Agree 0
    I can only think of one company that is very difficult when it comes to altering the contracts, normally we can get the terms amended. It can be done.
  • Charmian | 06 Jun 2013, 04:35 PM Agree 0
    I agree with your comments, it’s really difficult negotiating with large companies that don't want to change their contracts but if you explain that the insurance won't cover the SME - the lawyers for the large companies are usually willing to negotiate.
    I don't blame brokers – they are often the 'meat in the sandwich'! This problem is created by lawyers who do not understand insurance and large companies who just want to shift their contractual liability to someone else.
    However what’s worse, is that there are some brokers who ignore the issue completely and don't even warn their clients of the risks! A warning is the least you can give.
  • Seriously | 06 Jun 2013, 04:41 PM Agree 0
    Charmian - you are spot on.
Post a reply