Training on Contractual Risk, Insurance & Indemnities Course

This training on contractual risk, insurance & indemnities course course provides a practical understanding of how to effectively manage contractual risk through robust contract drafting, well-structured indemnity regimes, and comprehensive insurance programs. You'll learn to analyze contract structures, understand key clauses, and develop strategies to mitigate financial consequences. We'll explore the intricacies of insurance policies and terminology, emphasizing the limitations of insurance in risk management (insurance mitigates, it doesn't eliminate risk!). You'll also master techniques for drafting effective indemnity clauses and learn about cutting-edge dispute resolution methods for international contracts.

Key Features:

• Practical Focus: Emphasis on real-world applications and case studies.
• Actionable Strategies: Develop practical skills for risk mitigation and dispute resolution.
• Expert Instruction: Learn from experienced professionals in contract management and risk mitigation.
• Comprehensive Coverage: Explore all aspects of contractual risk, insurance, and indemnities.
• Interactive Learning: Engaging sessions with discussions, exercises, and group work.

Target Audience:

This training on contractual risk, insurance & indemnities course benefits professionals involved in contracting across various sectors:

• Engineering
• Projects
• Construction
• Tenders
• Contracts
• Legal
• Insurance
• Risk Management
• Procurement & Purchasing

Course Objectives: 

Upon completion, you will be able to:

• Analyze Contract Structures: Understand contract structures and the rationale behind drafting choices.
• Interpret Key Clauses: Interpret key clauses in different contract types.
• Develop Indemnity Regimes: Design and implement effective indemnity regimes.
• Understand Insurance: Grasp the meaning, limitations, and applications of various insurance types.
• Manage Contractual Risk: Use contract provisions and insurance to mitigate risk.
• Resolve Disputes: Employ effective dispute resolution techniques in international contracting.

Course Content:

Module 1: Commercial Risk & Contractual Mitigation

• The Need for Contracts
• Identifying & Classifying Contractual Risks
• Risk Mitigation vs. Impact Mitigation
• Key Concepts: Title, Incoterms, Intellectual Property
• Contract Terminology (Conditions, Terms, etc.)
• Navigating Different Legal Systems

Module 2: Contract Drafting & Key Clauses

• The Purpose of Contracts
• Contract Formation (offer, acceptance, consideration)
• Oral vs. Written Contracts
• Key Contract Clauses:

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  • Terms & Conditions
  • Liquidated Damages/Penalties
  • Limits of Liability
  • Suspension & Termination
  • Acceptance & Certificates
  • Guarantees/Warranties/Maintenance
• Agency Issues
• Contract Structure & Incorporation of Documents
• Standard Forms & Tender Documents
• Letters of Intent/Award, Comfort/Awareness, Side Letters
• Bank Bonds & Guarantees
• Parent Company Guarantees

Module 3: Insurance in a Contractual Context

• The Purpose of Insurance
• Insurance Coverage & Limitations

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  • Limits on Cover
  • Duty to Disclose Information
  • Meaning of "All Risks"
• Relationship with Risk Management
• Types of Insurance Used in Contracts:
  • Workers' Compensation/Employers' Liability
  • Third-Party Liability
  • Property Damage
  • Professional Indemnity/Errors & Omissions
  • Construction All Risks
  • Motor & Aviation
  • Marine Insurance (Hull & Machinery, P&I Clubs)
• Other Relevant Insurances (Pollution, Goods in Transit, Business Interruption, etc.)
• Project Insurance: Arrangement, Beneficiaries, Subcontractor Extensions (National Oilwell case study)

Module 4: Indemnities: A Deep Dive

• Meaning & Purpose of Indemnities
• Drafting Effective Indemnities (irrespective of negligence - Piper Alpha Litigation)
• Linking Indemnities with Insurance
• Cross-Indemnities
• Indemnities for Personnel, Property, & Catastrophe Risks

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  • Value of Covenant
  • Issues with Indemnities Under Civil Law Systems
• Indemnities & Third Parties
• Liability in Negligence & Contractual Conditions
• Claims Handling (timely claims, information, involving insurers, dispute resolution)
• Self-Insurance

Module 5: Dispute Resolution Techniques

• Negotiation & Settlement
• Staged Dispute Resolution Clauses
• Litigation
• Arbitration
• Enforcement of Judgments & Awards
• New Best Practices in Dispute Resolution:

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  • Mediation
  • Conciliation
  • Early Neutral Evaluation
  • Expert Determination
  • Pendulum Arbitration