Spring is contract season for many industries—construction, medical services, maintenance, transportation, and professional services. Unfortunately, contracts often introduce risk faster than insurance can respond.
Many agreements include standardized insurance requirements that don’t reflect your actual exposure. Limits may be too low. Additional insured language may dilute your coverage. Indemnification clauses may shift risk you didn’t intend to accept.
A common mistake is assuming that “meeting contract requirements” equals protection. In reality, contracts transfer risk—insurance simply finances it if coverage applies.
Before signing, businesses should review:
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Additional insured requirements and shared limits
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Indemnification language
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Waiver of subrogation clauses
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Required limits versus actual exposure
Once signed, these obligations are enforceable—even if your insurance doesn’t fully respond.
Contracts should be reviewed alongside coverage, not after the fact. Doing so allows time to negotiate terms, adjust limits, or decline risk that doesn’t align with your operation.
Get options. Get clarity. Get covered.
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