Our clients understand, to a greater or lesser degree, the liabilities that may arise for breaching their duty of care in the course of conducting their business and they purchase Public and Products Liability insurance to provide cover for those liabilities. As part of their business, they will also enter into contracts such as leases, bills of sale, service agreements to name but a few. Many of these will carry obligations that can extend their duty of care well beyond that imposed under common law and the majority of general liability policies will contain a contractual exclusion.

How well does your client understand the risks to their business from signing some of these contracts? Many of these exposures can be quite complex and the consequences of accepting them can be severe. In all of these cases, the client needs specialist legal review of these contracts but they will also rely heavily on their broker’s advice as to the insurance solutions available to them in the event they need to sign these contracts.

This is where the experienced liability underwriters at Pen can help you. We are familiar with many of the contractual obligations that your clients may encounter and can provide some guidance on potential insurance solutions.
It is important for clients to understand that general liability policies will only respond to liabilities they assume in tort and that it is not always commercially possible to purchase cover for some of the more onerous clauses found in contracts. It is imperative that clients speak to their broker before they sign.

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