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MShore Law
MShore Law, Attorney
Category: Business Law
Satisfied Customers: 25285
Experience:  Drafted Negotiated and/or Reviewed Thousands of Commercial Agreements
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as a startup staffing firm we are facing a deadlock with our

Resolved Question:

as a startup staffing firm we are facing a deadlock with our first major client. the standard contract they use has a clause requiring us to pay all salaries back to them if they terminate our consultant. How can we move forward. would liability insurance cover for such scenarios?
Submitted: 1 year ago.
Category: Business Law
Expert:  MShore Law replied 1 year ago.
Thank you for the post, I am happy to assist you by answering your questions. When you say how can we move forward, are you asking for alternate contract suggestions?
Customer: replied 1 year ago.

it seems that they are not open to making any changes in their standard format. it seems too risky to me to sign such clause, but I was wondering if there are other safety measures we can pursue.


 

Expert:  MShore Law replied 1 year ago.
You can ensure that your insurance would cover reimbursement obligation via an acts and omissions policy (assuming that the basis of the refund would be a claim that the employee acted negligently). But if an employee acts intentionally your insurance would not cover that.
Customer: replied 1 year ago.

do you have any recommendation for carrier?

Expert:  MShore Law replied 1 year ago.
Unfortunately we cannot offer such direct recommendations per site rules. But you should review the ratings of insurance companies at sites such as JD Power and Assoc.
MShore Law, Attorney
Category: Business Law
Satisfied Customers: 25285
Experience: Drafted Negotiated and/or Reviewed Thousands of Commercial Agreements
MShore Law and 10 other Business Law Specialists are ready to help you

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