Contractual Liability – What do you mean it’s my fault?
Did you know that many contracts may contain clauses that transfer the responsibility for damage or loss back to you?
Do you rent equipment to use in your business? If so, you may be held liable for damage to that equipment. Are you sure that your current insurance policy provides protection just in case?
Are you involved in any type of maintenance work? It could be snow removal, lawn care, commercial or residential cleaning. You could be responsible with or without having signed a contract if someone is injured as a result of your work. Even if you don’t feel you were responsible, you will still have legal defence costs if you are sued. That protection can be available under your Commercial General Liability policy.
Do you review any contracts that you sign, before signing them, to make sure you aren’t assuming additional liability that you shouldn’t be held responsible for? If you do sign agreements where you have assumed liability, does your Commercial General Liability insurance afford you protection?
Are you hiring sub-contractors as part of your business? Are you requesting a Certificate of Insurance to make sure they have their own liability coverage? You may or may not be covered under your own insurance. Have you considered being added as an Additional Insured under their liability insurance to provide protection for you for work performed by them?
These are all questions that need to be answered to ensure that you have the protection you need in the event of bodily injury or property damage arising from your work.
For more information contact Heather Cournoyer, CCIB, CIP, Commercial Insurance Specialist at Think Insure heather@thinkinsurance.ca
