One key area we have seen increasing is where companies are assuming risk in the contracts they have in place for the operation of the company. These contracts can be in the following areas:
- Purchase or sale of goods and services
- Transport risks (shipping, logistics ‘up country deliveries’)
- Engaging Contractors
- Using Labour Hire workers
- Ancillary services
We have four objectives in reviewing the contracts sent to us by clients:
- Identifying Contractual Obligations
- Ensuring they comply with their Statutory Duty of Disclosure
- Ensuring their policies will work
- Risk Management
These activities are an essential and unavoidable component to managing a sound, economic and efficient insurance program.
Generally, clients do not have risk and insurance advisors on staff. This is where Austbrokers SPT can complement the legal advice sought by clients. We have the expertise to review a contract and advise on inherent risks and where insurance policies may need amendment to work. Please note however that we are not legal advisors and we do not give legal advice.