Examples

  • Standard retail lease
    Standard retail lease

    Standard retail lease

    Standard retail lease

    A retail business, about to enter into a lease for new premises, was concerned that the indemnity clause contained in the lease meant it would have to take on some of the landlord’s legal responsibilities.

    It was also concerned that its current liability insurance policy did not provide cover for itself and the landlord as required.

    We were able to quickly review the lease and policy and advise the retail business that:

    • The indemnity clause was unlikely to be interpreted as meaning it would assume the landlord’s risks and expose it to future uninsured claims
    • Its current liability policy did not provide insurance cover for the landlord in the terms required
    • The specific insurance obligation in the lease could be met if their insurer was prepared to endorse the landlord as an “interested party” under the policy in a way which ensured the requirements of sections 11 & 48 of the Insurance Contracts Act were met

    The business was able to obtain the relevant cover and sign the lease without delay.
     

  • Standard licence agreement
    Standard licence agreement

    Standard licence agreement

    Standard licence agreement

    A sporting association invited to run after-school activities for students at a local high school was required to enter into a ‘standard’ licence agreement with a Department of Education.

    The association was not aware that the licence agreement contained:

    • Terms which transferred to it legal responsibility for risks it would find difficult, if not impossible to control e.g. responsibility for the behaviour of independent “visitors” to the school
    • An indemnity clause which, after careful analysis, transferred to it the liabilities of the Department and school
    • Terms which obliged it to take out liability insurance to cover the school. 

    A review of their current policy indicated these obligations were not met. Within 24 hours PenSure INDEMNITY CHECK identified the assumed risks and unmet insurance obligations, allowing the association to clarify the risk transfer terms with the Department and negotiate better insurance terms with its insurer

  • Complex Design & Construct agreement
    Complex Design & Construct agreement

    Complex Design & Construct agreement

    Complex Design & Construct agreement

    A sub-contractor's negotiations on a multimillion dollar construction project stalled when requirements for project-specific insurance were discussed and one party proposed a "novel" way to meet those requirements.

    The subcontractor's broker contacted PenSure to seek urgent advice on whether this proposal would meet the contractual stipulations.

    Within 24 hours PenSure advice identified that the proposed arrangements would not satisfy the contract.  The broker was able to confirm this position with his client, identify the relevant risks, and use the advice to advance further negotiations. 

     


     

  • Complex contract – personal injury
    Complex contract – personal injury

    Complex contract – personal injury

    Complex contract – personal injury

    Three years after completing a project, personal injuries damages were sought by an injured worker from his employer, the principal contractor and its scaffolding sub-contractor.

    As part of its defence, the principal contractor made a cross-claim against the scaffolder, arguing that a contractual indemnity term in the subcontract acted to shift all of its responsibility for the worker’s accident onto the scaffolder (regardless of the principal’s own fault).  The scaffolder’s liability insurer denied cover for this cross-claim, pointing to an exclusion in the policy relevant to assumed risks. 

    Had the scaffolder sought PenSure INDEMNITY CHECK advice prior to signing the subcontract it would have known:

    • The contractual indemnity in the subcontract could shift the principal’s risk to it
    • It was likely its insurer would deny cover for this assumed risk and the scaffolder was under-insured
    • To pursue alternative insurance options that may provide it with more expansive cover for this project