Contractual Risk, Insurance, and Indemnities

Introduction:

Organizations manage risk by eliminating, minimizing, or managing it. The Contractual Risk and Indemnity Insurance course focuses on drafting effective contracts that allocate risks fairly and incorporate a robust insurance framework. It highlights that while risks may not be eliminated, insurance can mitigate their financial impact. This course is essential for contract professionals who need to understand and apply insurance to manage contractual risks effectively.

Objectives:

At the end of this Contractual Risk and Indemnity Insurance course, participants will be able to:

• Recognize the purpose of contracts and their components, including the benefits of specific drafting styles.
• Understand and apply major doctrines of contract law.
• Identify and clarify key clauses in various contracts.
• Assess the business significance of specific contract clauses.
• Explore models of indemnity in international contracts.
• Analyze the applicability and effects of indemnity provisions.
• Understand insurance structures and terminology.
• Comprehend the role and limitations of insurance in risk management.
• Use contract provisions to minimize the likelihood of disputes.
• Employ contract-based dispute resolution methods, including non-traditional approaches like mediation.
• Integrate indemnity and insurance arrangements effectively.
• Identify applicable insurance types in contracting.
• Apply the latest dispute resolution techniques.

Training Methodology:

• Workshops
• Analyzing case studies
• Acting out scenarios
• Building groups
• Discussion panels

Course Outline:

Unit 1: Commercial Risk and Risk Management Methods through the Contract

• The importance of contracts
• Assessing risks
• Eliminating vs. mitigating risk
• Contract position and terms of sale
• Patent rights
• Types and characteristics of contracts
• Contract terminology
• Jurisdictional practices

Unit 2: How and Whom Contracts are Entered into, and Why

• The function of settled contracts
• Nature of contractual agreements
• Oral vs. written contracts
• Components of a valid contract
• Contract terms and plans
• Liquidated damages and penalties
• Limitations on liability
• Suspension and termination rights
• Acceptance and certificates
• Guarantee, warranty, and maintenance tools
• Agency relationships
• Composition of respondents
• Documentary incorporation
• Proposal documents
• Letters of notification, comfort, and advice
• Financial bonds and guarantees

Unit 3: Insurance

• Purpose and scope of insurance
• Coverage inclusions and exclusions
• Policy limitations
• Disclosure obligations
• All risks coverage
• Connection to risk management
• Types of insurance: workmen’s compensation, liability, property, professional indemnity, construction, marine, pollution, and others
• Arrangements and beneficiaries
• Coverage extensions to subcontractors
• Insurance for projects

Unit 4: Indemnities

• Definitions and types of indemnities
• Indemnities without fault or breach
• Relationship to insurance
• Cross indemnities
• Personnel, property, and catastrophe coverage
• Value and challenges of indemnities
• Liability in negligence
• Claims handling process
• Project-based claims management
• Submitting and settling claims
• Engaging with insurance companies

Unit 5: Conflict Management

• Settlement methods
• Multi-tiered dispute resolution provisions
• Court cases and arbitration
• Implementation of court decisions
• Policies for case management
• Alternative dispute resolution methods
• Pre-trial sifting and conflict resolution
• Arbitration as a last resort