ProPoints Newsletter – March 2018

Upcoming Seminar/Webinar

Retirement, Perpetuation and M&A Planning
Date: April 10, 2018

Time: 8:00am EST

Presenter(s): Christopher Alderson, CFP

Watch Last Month’s Webinar

Register Now

Promark Is Expanding!

Promark Agency has been rapidly growing over the past decade and is now very proud to announce our new partnership with Empire Spectrum, LLC. This partnership ensures Promark’s long-term market viability and strength while expanding our reach across New York and New Jersey. The partnership will not change anything about Promark or our services, but it allows us to better serve our clients in an ever-expanding marketplace!

Risk Management Quick Tip

Avoid Using “Arising out of” Indemnification Language

One of the largest sources of liability for A/E firms is a bad contract—specifically a broad indemnification clause. Such a clause can leave a firm liable for losses that occur for reasons beyond their own negligence and thus lead to unnecessary, and uninsured payouts.

In Penta Corporation v. Town of Newport v. AECOM Technical Services, Inc., the court held that the A/E firm (Penta Corporation) owed its client (The Town of Newport) a defense against a contractor suit (AECOM). The suit in question alleged that Penta’s bidding and construction plans, provided by the town to the contractor, were defective.

In this case, the A/E firm agreed to an overly broad indemnification agreement that included “Arising out of” claims. This language held Panta responsible for any claims related to their engineers’ performance and led the court to rule that the firm had a duty to defend its client.


Risk Management Tip…

On all indemnification agreements, replace “Arising out of” language with “To the extent caused by the negligence of the A/E firm.”