Indemnification - Meeting of the Minds

Member concern has been rising with respect to client Indemnification contract language that you have been advised leaves consulting engineering firms with uninsurable risk. This appears to be a growing trend in the industry.

Some public entities have indicated to ACEC-SK that those who provide insurance coverage to consulting engineering firms in Canada have a definite “American” approach to risk, whereas the legal and risk professionals within government are offering Indemnification contract language more commonly used in a Canadian context. ACEC-SK has expressed that regardless of context, there are limited insurance options available to Saskatchewan consulting engineering firms, and they must adhere to the insurance companies’ constraints in order to receive coverage.

There now appears to be some recognition by some public entities that it is in nobody’s interest to have uninsured consulting engineering firms. ACEC-SK is working diligently with specific stakeholders on behalf of its membership, including seeking the advice of both legal and insurance industry representatives, to craft Indemnification clause language that meets the needs of both client and consultant in today’s economic environment.

Watch upcoming newsletters for progress updates.


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