July 8, 2011

Question

Ken,

How do some PERS companies not require the client sign a hold harmless/errors and omissions contract. I know I had to produce a copy of your contract to my insurance company to get coverage.

Also what is the acceptable amount of time to get installers to agree to a non contact of accounts agreement.

Ron

Answer

You need a PERS contract to offer PERS services whether your insurance company is smart enough to require one or not. Keep in mind that insurance is necessary for your company's protection, but it is not full proof protection for a few reasons. One, the carrier can disclaim coverage for a variety of reasons; and two the claim can often exceed the available insurance coverage. You need to cover your own butt with a proper contract. Of course the contract is also not full proof protection, but without it you leave yourself exposed to unimaginable liability.

The "hold harmless" clause you refer to is the indemnity clause, an important provision but hardly the most important one. The Standard Form PERS contract should satisfy your insurance company, and more importantly a Judge should you need to rely upon it.

 

As far as your question on non compete, the time depends on various factors. You can read several articles on my web site [use your edit/search/find feature for "restrictive"] and you can start with this recent post https://www.kirschenbaumesq.com/earticle712.htm

If you are looking to prevent your employee from competing it would probably be acceptable to prohibit any contact from one year of termination of employment, perhaps longer if you train your employee and use proprietary systems.