by Guest » Fri Oct 30, 2009 04:08 pm
Would you sign a contract with a Broker that had the following clause included?
"Liability. With regard to the services to be performed by the Agent pursuant to the terms of this Agreement, the Company shall not be liable to the Agent, or to anyone who may claim any right due to any relationship with the Company, for any acts or omissions in the performance of services on the part of the Agent or on the part of the agents or employees of the Agent. The Agent shall hold the Company free and harmless from any obligations, costs, claims, judgments, attorneys’ fees, and attachments arising from or growing out of the services rendered by the Agent pursuant to the terms of this Agreement or in any way connected with the rendering of services. "
"Hold Harmless. To the extent and only to the extent of any payment by the Company to Agent there for, Agent shall be responsible to Company for all loss or damage claimed by third parties arising from business done by and entrusted to him and shall indemnify and hold the Company harmless from any and all expenses, costs, causes of action, loss or damages resulting from fraudulent or unauthorized acts or omissions of Agent in his performance Page 4 of 6
of this Contract. Company shall be responsible to Agent for all loss or damage claimed by third parties arising from business done by Company and shall indemnify and hold Agent harmless for any and all expenses, costs, causes of action, loss or damages resulting from such third party claims. "
"Liability. With regard to the services to be performed by the Agent pursuant to the terms of this Agreement, the Company shall not be liable to the Agent, or to anyone who may claim any right due to any relationship with the Company, for any acts or omissions in the performance of services on the part of the Agent or on the part of the agents or employees of the Agent. The Agent shall hold the Company free and harmless from any obligations, costs, claims, judgments, attorneys’ fees, and attachments arising from or growing out of the services rendered by the Agent pursuant to the terms of this Agreement or in any way connected with the rendering of services. "
"Hold Harmless. To the extent and only to the extent of any payment by the Company to Agent there for, Agent shall be responsible to Company for all loss or damage claimed by third parties arising from business done by and entrusted to him and shall indemnify and hold the Company harmless from any and all expenses, costs, causes of action, loss or damages resulting from fraudulent or unauthorized acts or omissions of Agent in his performance Page 4 of 6
of this Contract. Company shall be responsible to Agent for all loss or damage claimed by third parties arising from business done by Company and shall indemnify and hold Agent harmless for any and all expenses, costs, causes of action, loss or damages resulting from such third party claims. "
Posted: Sat Oct 31, 2009 03:48 am Post Subject:
More and more commonly found and these hold-harmless agreements and severability language ramblings, as you're aware, are there to protect the carrier in the event the agent is an idiot.
Just about every state has a version of "agency law" that spells out the right, duties and responsibilities of agents, principals and third-parties. They basically say that the "agent is the company" and that the company can be held liable for acts of the agent. There's a bunch of other stuff legally here, such as waiver and estoppel doctrines and bunch of other hooey, but it all plays.
The bottom line of the waiver, severability and hold-harmless agreement they want you to sign shouldn't be a problem assuming you do your job right. Make sure you carry E&O to the highest level you can afford...cover thy butt as it's said.
Would I sign it? Yup. I wouldn't have a problem because I learned a loooong time ago to not go where I don't know in terms of my professional life. Keeps you out of a lot of hot legal water.l
InsTeacher 8)
Posted: Sun Nov 01, 2009 03:03 pm Post Subject: E&O
What if the company has told you that you would be covered under their E&O, and you do not have your own E&O coverage, would you still sign off?
Posted: Sun Nov 01, 2009 09:08 pm Post Subject:
What is said to you is irrelevant. If they have you covered under their own E&O fine have it in writing. What if that employee becomes a former employee?
Should have your own E&O, this is a business and we are in a litigation frenzied country. Always protect yourself!
Posted: Thu Nov 05, 2009 03:30 am Post Subject:
Yup, get you own E&O, it's not worth risking it. And as ins teacher said, if you know what you are doing, and you know your limits you should have no problem with this contract.
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