Why You Should Always Send Contracts to Your Insurance Broker
As an aircraft owner, you must deal with various contracts on a regular basis. Whether it is a loan agreement, maintenance service contract, hangar agreement, dry lease, or any other type of legal document, you need to make sure your contracts are aligned with your insurance coverage.
Why is that important? Because contracts often contain clauses that affect your liability, indemnity, and insurance obligations. For example, a contract may require you to:
- Assume liability for damages or losses that are not your fault
- Waive your right to subrogate against a third party
- Add another party as an additional insured on your policy
- Provide a certain level of insurance coverage or limits
- Provide proof of insurance or certificates of insurance
If you sign a contract without consulting your insurance broker, you may expose yourself to uninsured risks or a lawsuit for breach of contract if you signed the lease agreeing to provide the contractually required insurance and failed to do so.
A best practice is to have your legal counsel review all contracts. While we are not attorneys, we can review your contracts and advise you on how to best protect your interests and comply, to the extent possible, with the insurance requirements of the agreement. The AssuredPartners Aerospace team can also help you negotiate more favorable terms and obtain the required endorsements promptly for the party requesting.
Let us know how we can help. Contact us today or visit assuredpartners.com/aerospace.
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