Manage Your Risk


How to Manage Your Risk

No one can plan for an accident, but you can prepare for one. Whether you are directly or indirectly responsible, you can be pulled into a lawsuit and the price tag for attorneys’ fees can be a hefty one. Insurance exists to defend and indemnify you from allegations of negligence.

Remember, frivolous lawsuits are not unheard of and even if there is no merit for the suit, a person can still file a complaint against you. Insurance is an affordable way to safeguard your assets and protect your financial future. Here are some useful tools and resources to help you manage your risk.

 

Claims Management & Scenarios

Consulting chemical engineers have unique needs in risk mitigation and claims management. The following resources were created by a legal expert with more than 20 years of experience advising AIChE members and provide some useful insights to help you minimize losses and respond to a claim.

 

Contract Tips

Each party should be willing to be responsible for losses and claims to the extent that they are caused by that party’s negligence. We offer the following as a contractual provision that addresses this issue:

To the fullest extent permitted by law, Client and Consultant each agree to indemnify the other party and the other party’s officers, directors, partners, employees, and representatives, from and against losses, damages, and judgments arising from claims by third parties, including reasonable attorneys’ fees and expenses recoverable under applicable law, but only to the extent they are found to be caused by a negligent act, error, or omission of the indemnifying party or any of the indemnifying party’s officers, directors, members, partners, agents, employees, or sub consultants in the performance of services under this agreement.

 If claims, losses, damages, and judgments are found to be caused by the joint or concurrent negligence of Client and Consultant, they shall be borne by each party in proportion to its negligence.

 

ABC's of Insurance

Need help understanding all the insurance terminology? Check out our ABC's of Insurance glossary!