Your insurance broker may not an accountant or a lawyer, but they are a professional advisor you have chosen to help you with your Commercial Cleaning business. Brokers specializing in commercial cleaning operations have information and insight that will help in your contract review.
Utilize the professional service you are already paying for when it comes to the review of contracts.
Your Commercial Cleaning business enters contracts month in and month out. It is how parties navigate new relationships and projects. Clearly outlining who is responsible for what part of the project. Most contracts have language referring to insurance requirements and indemnification responsibilities. And often, you are being asked to take on significant responsibilities by way of these particular clauses. Sometimes, more responsibility and liability than is warranted.
A contract is a negotiation. Your clients are seeking to be protected as you perform your contracted duties in cleaning and maintenance. This is reasonable. You also should be protected as you engage in the work. Your broker can provide feedback on industry norms and if your client is requesting terms that are outside of those norms.
Have your clients asked you for any of the following?
- Additional insured status
- Waiver of subrogation
- Primary and non-contributory language
- Completed operations
- Specific ISO form numbers
Talk with your broker about how these requests impact your liability and if it opens your company to more risk than anticipated. Brokers can provide clear definition and explanation of what these requests mean for you. They also can advise if your insurance company is willing to make the requested changes and explain any additional premiums the company may charge because of the changes.
Some industries require special consideration. Are you planning on working with clients in the following industries?
- Healthcare
- Government
- Banking/Financial
- Education
The contract may require insurance coverage types that you do not currently carry. It is worth talking to your broker to ascertain the costs associated with these new coverages. Having this information early in the discussions could help you negotiate your final pricing with the client.
Your broker understands the contract is a potential gateway to new work for you. As one of your professional advisors, they want to see you succeed. Utilize their commercial cleaning industry expertise and experience with insurance language in contracts to help you negotiate the best deal possible.
