indemnity and liability limits

[Antman]

Going through new contract, and I see that the agency has put in a limit of 5 million on their side and no limit to my indemnity and liability exposure.

Although they did require to see indemnity and public liability insurance for 1 million as part of agreement I was left wondering about the wording in the contract.

Although I'm not a Frank Spencer character should I be worried by the lack of limit on my side in the contract?

[kevpuk]

I would be happier with defined limits that reflect my insurance, and/or vice versa....

[SarahL2012]

I would be happier with defined limits that reflect my insurance, and/or vice versa....

Me too - I always make sure a figure is stated.

[kingcook]

Going through new contract, and I see that the agency has put in a limit of 5 million on their side and no limit to my indemnity and liability exposure.

Although they did require to see indemnity and public liability insurance for 1 million as part of agreement I was left wondering about the wording in the contract.

Although I'm not a Frank Spencer character should I be worried by the lack of limit on my side in the contract?

Is this no limit to your company (which is a limited company, I guess), or you personally?

[monkfish]

Frank Spencer: (referring to the sophisticated computer in the employment exchange) I thought it was a sort of tea thing.

Good spot finding that - highlighting potential flaw of what agencies expect to be signed without question.

I had something similar recently. It was resolved by a statement in the contract something like "the contractor's liability will be capped at xxx in line with the contractor's cover"

Like everyone above I'd ensure a figure is stated that does not exceed your actual cover. If client/agency requires more cover than myco has (happened once to me) then I negotiate some contribution to the excess cost. Your needs may vary.

Not sure about agreeing to more cover than your policy provides either. Could that invalidate the entire policy?

[Antman]

@kingcook
That would be the company not me.

Funnily enough this was not picked up by the IR35 check, because I suppose they were only checking whether the role was IR35 compliant.

Moral: Read the contract yourself.