Insurance and Indemnification
More and more often, architects and engineers are being asked to sign agreements that include an indemnification clause. These clauses indemnify their clients against any loss that they may suffer in connection with the project.
Insurance and indemnification language is critically important for any architect / owner agreement. If written inappropriately or too broadly, an indemnification clause would extend your financial obligation beyond what the law would otherwise require and apply to any loss that the client may suffer whether or not it is attributable to the architect’s or engineer’s activities.
Indemnification clauses by nature will not be insurable under your professional liability insurance policy. This means that you would be personally liable for those financial commitments.
All contracts need to be drafted carefully, especially those that contain indemnification clauses. If you are in the process of drafting your agreement or have already signed an agreement with an indemnification clause, call us today. We have the skills, resources, and experience necessary to assist you through this complex area of law.