I think we may have gotten the same email this week. I got one of these agreements and there was a glaring General Indemnity section. I immediately went to my E&O policy and found that it specifically excludes those so I would be accepting unlimited liability that is not insured. Of course I cannot do that. I'm exploring my options now as I would very much like to maintain my business with this client. The thing is that the General Indemnity statement is most likely what would exclude the insurance coverage. The attempt to tighten their coverage actually reduces it as I was never going to be able to cover a major claim anyway it was always going to be the insurance comany. The attempt to obligate me further makes it impossible for them to recover. I hope these companies realize that an agreement that they can never collect on holds no real value to them and they will stop the practice. You start to think...isn't that what the title insurance is for? It goes deeper to the aggressive policies of the insurance companies of subrogating all their claims and turning around and demanding payment back through the chain. It would appear as if there is no actual insurance at all but a system set up so that the insurance company never pays any claims. You can sort of understand where the vendor managment company is coming from since there is no insurance just their bank accounts when something goes wrong. Unfortunately either way in the end it still remains impossible to get blood from a stone. The guys on the ground just can't pay, we don't have the money.
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