End of Year Risk Tip: Review Contracts Up For Renewal
As we move into a new year…a number of business related contracts come up for renewal. With that in mind, we suggest that you spend the time to review, in detail, your contracts such as leases, purchase agreements and services contracts.
Comment: Many times contracts are signed without a proper review and understanding of the liability being assumed and insurance implications. Most contracts and leases require you to assume a variety of liability. The pertinent clauses and wording are not always reviewed and addressed properly placing you in breach of contract as soon as it is signed. Unfortunately these are not addressed until after the fact, placing you in a very difficult position. We see this happen more often than not in construction contracts. The haste to get projects underway precludes proper review of the documents defining the projects terms and conditions. This can be a most costly mistake.
Bottom Line: Have your contracts reviewed by your attorney and insurance advisor prior to signing them. Hopefully this will serve to avoid taking on any unnecessary liability or exposure.