A contract can transfer more risk than a policy accepts
Leases, customer agreements, supplier contracts and construction subcontracts often allocate responsibility through indemnities, insurance clauses and defence obligations. Signing the agreement does not mean an existing policy automatically covers every obligation.
Commercial general liability policies may cover some liability assumed under qualifying contracts, subject to definitions, exclusions and the facts of a claim. Other promises can be broader than the liability the business would have without the contract. Legal review and insurance review serve different purposes and should happen before signature.
Terms that deserve a coordinated review
Look for requirements involving:
- Indemnifying or defending another party
- Naming a landlord, client or project owner as an additional insured
- Waiving rights of subrogation
- Primary and non-contributory wording
- Specific coverage types, limits, deductibles or insurer ratings
- Completed operations coverage after work ends
- Notice of cancellation or material policy change
- Insurance that must remain in force after the contract expires
An additional insured endorsement, if available, applies only as its wording states. It does not make the other party an insured for every activity or replace their own insurance.
A certificate is evidence, not an amendment
A certificate of insurance summarizes coverage in force on the date issued. It does not normally change the policy, add rights that are absent from an endorsement or guarantee future coverage. Requests that conflict with the policy must be resolved before work begins—not handled by changing the description on a certificate.
Send Westoak the complete contract and insurance schedule, not only the certificate template. Some requirements may need an endorsement, a different policy or a negotiated contract change.
Align the contract with the full insurance program
The review may extend beyond commercial general liability to errors and omissions or professional liability, cyber, automobile, property, pollution or builders risk. Confirm that subcontractors carry appropriate insurance and that written agreements support the intended transfer of risk.
Keep executed contracts, endorsements and certificates together. Report material changes in operations rather than waiting for renewal.
Review before committing
Westoak can explain what the available policies and endorsements say; your lawyer should advise on the legal effect and negotiation of the contract. Contact Westoak early enough to identify gaps, obtain insurer approval where required and avoid promising evidence that the policy cannot support.