IT contractors will often enter into contracts for supply of services.
A few things to consider to reduce the risk.
- Think about the worst! What might the losses be if you or your customer breach the contract terms.
- Consider how any terms limiting losses or liabilities could impact either party’s remedies
- If you are given a draft contract which DOES NOT have anything limiting your liability, then consider adding something in. This could be a liability cap or an exclusion of certain types of losses a customer may incur.
- Make the contract as clear as possible. If it went to court and the contract is unclear it could be interpreted against you.
- Lastly consider how your business and professional indemnity insurance may respond to the contract and be careful not to accept liabilities beyond your insurance cover
If you would like to discuss this any further or understand more about how you may protect yourself then please call 0207 648 4343.
Or email us at info@custodianinsurance.co.uk
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