Can your contracts cope with Covid-19?
I have just been reading about two law firms setting up funds or arranging third party funding for Coronavirus linked litigation particularly in the insurance field. That made me think, perhaps it is worthwhile spending some time thinking about looking at standard form contracts or more precisely, perhaps addendums to standard form contracts that help to protect a company’s position in these difficult times. According to press reports, the insurers are relying on an absence of very specific wording to try and escape liability so perhaps the inclusion in future contracts of whatever nature of specific wording is what is required. I would not get your hopes up about amending your insurance contract so that in the next year for which you pay a premium you will make recoveries you did not make this year but it may be the time to do a rapid reassessment of standard form contracts to help protect your company against the vagaries of Coronavirus as far as you can. I dare say that the insurance companies are busy asking their lawyers to make sure that new contracts contain firm exclusions if in fact all companies need to examine whether what they do and how they do it needs to lead to a change in the current environment in their standard terms of business. Some form of review may at the least alert you to where there could be problems in the future and hopefully will let you identify some drafting that will prevent your business being more of a victim than it should. If you would like to talk to somebody about having your standard form contracts or any contracts reviewed then they should contact Ted Mercer on 07802 432 416 or firstname.lastname@example.org