Vital protection against claims for breach of contract

Around 70% of the claims we handle on behalf of technology companies are related to a breach of contract. That’s a significant percentage when you consider all the different risks faced by the technology sector.

If your business is asked to sign a contract with a client or supplier, you’ll need an insurance policy that provides cover for both tort law and contract law.

Tort law enables people to make compensation claims for personal injury and lost or damaged property. It can also cover the harm caused to someone’s reputation or the reputation of their business.

Contract law makes the agreement of contractual terms and obligations enforceable in a court of law. When one party fails to meet these terms and obligations, they commit a breach of contract.

Premiums from online insurers may look attractive, but they tend to only provide cover for tort law, with contract law being excluded under what’s known as a contractual liability exclusion.

Standard insurance policies can also fall short if your company does business overseas. For example, if you’re signing up to contractual terms that are subject to a US court of law, you need to ensure your policy reflects this.

To discuss how you can protect your company against the risks it faces in today’s business environment, please call me on 0118 9165 484 or email adam.lawrence@macbeths.co.uk

Author: Adam Lawrence | September 25th, 2017

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Adam Lawrence
Get in touch:   Reading: 0118 916 5480   London: 020 7036 8767   info@macbeths.co.uk