There are many clients in Saskatchewan – both in the public and private sectors – that include non-insurable Indemnity Clauses in their contracts.

ACEC-SK has challenged several of these clients, but their legal and risk advisors consistently return with a recommendation NOT to change the client’s contract language.

More recently, your association has been working with a champion who understands that as a client, this entity could be facing a reduced professional services pool because consultants may choose not to propose on work with this client given the non-insurability of their Indemnity Clause.  An appreciation of this circumstance, combined with ACEC-SK’s introduction of risk experts into the conversation, has motivated this client to seek a meaningful change at the senior levels.

While this is a shining light in an otherwise entrenched client position, ACEC-SK needs to hear from its members on this issue.  It is our understanding that many of our members continue to sign contracts that leave them uninsured.  This could be happening because the firm’s risk profile allows them to take the risk despite difficult contractual language.  Member firms may be signing without realizing this clause leaves them uninsured.  Others may be signing simply because they feel they have no choice despite the risk of a catastrophic consequence.

This leads to one question. ACEC-SK needs to receive clear direction from its members about how big of a priority this particular challenge should be in its advocacy efforts on behalf of the membership.  Because the current environment is so competitive right now, the non-insurable indemnity clause is just one of many challenges members are facing.  Please let us know how you rank non-insurable Indemnity Clauses relative to a basket of many other challenges.  Is it number one?  Is it pretty high, but something else is more critical?  Is it pretty low relative to many other things your firm is facing right now?

Your guidance will help your association prioritize its advocacy efforts.

Contact after September 15, 2018:

Bev MacLeod, Executive Director
P: 306.531.8253
E: bmacleod@acec-sk.ca
August 20, 2018