# contract wording good or bad



## home rescue (Oct 25, 2003)

o.k. here it goes 2 phrases in this contract I'm unsure of who assumes responsibilities for slip and fall accidents or car accidents with this kind of wording. I carry the 1 million insurance no problem, is it acceptable for me to put them on as additional insured on my insurance and if i do does this make me assume ALL LIABILITY. any way here are the 2 clauses that make me question the contract . 1)Contractor agrees to protect, indemnify and hold "Company's Name Here" harmless from and against any and all losses, claims, costs, liabilities, expenses and judgments, including attorney's fees and court costs, which may be imposed against Company by reason of any acts or omissions whatsoever of Contractor or Contractot's agents, employees or servants during the term of Contractor or Contractor's agents, employees or servants during the term of this agreement.
2)Contractor agrees to carry liability insurance in the amount of $1,000,000 and property damage insurance in the amount of $1,000,000 including Company therin as "an additional insured" and providing for thirty (30) days' prior written notice to Company of cancellation or any change in insurance coverage. Contractor shall provide Company with a certificate evidencing such insurance coverage upon execution of this Agreement; should Contractor fail to provide said certificate, or should insurance coverage be reduced or canceled during the term of this Agreement, this Agreement shall become null and void immediately. Is this typical language in a contract. Thank You!!


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## Mick (May 19, 2001)

Yep, pretty standard. From my memory, that seems like word for word of the proposal I received from a respectable company for plowing. Basically, you're agreeing to obtain and maintain insurance. Not let it lapse during the term of the agreement. You agree to "participate" in any legal action taken as a result of your services. This won't necessarily let them off the hook, but you're agreeing be responsible. By naming them as additional insured, they have recourse against your insurance if there is a claim.


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## plowking35 (Dec 21, 1999)

While that is typical with large commercial accounts, we will not and have not bid any work where we would have to agree to such terms. My ins co. doesnt want any part of that type of contract. IMO, stay away, unless you will make sick money.
Dino


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## BRL (Dec 21, 1999)

I have also seen that clause in some unrespectable company's contracts as well.  

Like Dino said, only take those contracts if the good money is there, because basically you are on the hook for the liability responsibility. Sharing that liability with the other company(s) would result in you being paid a little less for your services, in a fair world IMO. Also, your insurance company would be the final deciding factor, because if yours is like Dino's you won't be able to accept that clause anyway. Check with them first & see if the increase in your rates is worth taking on that contract.


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## BWinkel (Oct 23, 2003)

I think Mick's explanation is pretty good, although you may want to have your insurance agent or better yet your attorney take a look at the wording. I think the wording is pretty standard and sounds worse than it is. They would still have to prove negligence on your part in order for you to be held liable.


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## plowking35 (Dec 21, 1999)

By the simple fact that you provided a service, and someone got hurt, you would be negligent. This would be regardless of how well you performed the service. That is why I would not want all th heat on my co.
Dino


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## BWinkel (Oct 23, 2003)

I still think this is fairly standard wording of which we will be seeing more of in the future. Item 1 basically puts in writing what is otherwise usually implied - that you are resposible for your actions. Again, you should consult your insurance agent or attorney before entering into such an agreement. I wouldn't neccessarily throw the bid out because I don't understand the language.


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## CPSS (Mar 15, 2002)

If you don't have an attorney, call around. My good friend is an attorney that just retired from the State Police. He said that there is a real glut of new attorneys trying to start new practices and most would be happy to take on small jobs for a very reasonable fee. I bet you could have someone review that contract for $50. Well worth the money if you have any doubts.


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## home rescue (Oct 25, 2003)

Thanks guys, got a hold of an insurance agent that writes contracts, he said it was pretty standard and that they just want to make sure i stand responsible for my actions. I am gonna make sure they give me the right to spread salt or calium at my own call. BY the way they are very large company in the U.S. and the agent told me they were very reliable, and straight shooting.


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