Contracts with indemnification clause

[CathyA]

Anyone do work for a university, and they required a contract with an indemnification clause?
DS is running into problems with this. He could lose everything if it ever came to that. But he has alot of potential work with this uni.
But it's still too great a risk to take, for his new business. University counsel won't budge.

[iris lilies]

Does your son think he should be exempt from this (likely standard) point in a work contract? If so, why?

[pinkytoe]

At the Univ where I work, the other party can add an addendum to the contract but univ must agree to changes. I don't think with indemnification there is much way around their way though. Price of doing business.

[CathyA]

Iris Lily........DS has just started a business up and if he had to pay millions of dollars to the Uni, if something happened while on the job (which has never happened yet), he'd be finished.
He has liability insurance for several million that would cover problems like this, but that's not enough for the Uni contract people. But if something caused by the Uni were to hurt him, he can't hold them responsible. It isn't fair. Seems that if his insurance would cover just about anything, they could remove the indemnification clause.

[iris lilies]

Iris Lily........DS has just started a business up and if he had to pay millions of dollars to the Uni, if something happened while on the job (which has never happened yet), he'd be finished.
He has liability insurance for several million that would cover problems like this, but that's not enough for the Uni contract people. But if something caused by the Uni were to hurt him, he can't hold them responsible. It isn't fair. Seems that if his insurance would cover just about anything, they could remove the indemnification clause.

edited to say:

I think it's very cool that your son is making his way in a business doing cool (sound production?) work.

I wish him well in working through this problem.

[Tradd]

Cathy, is my thinking on the right track that your son's business involves some sort of construction/maintenance work, something that would involve a good chance of workers being physically hurt on the job? Or is it something like IT, where the chance of someone getting physically hurt on the job is minimal?

[CathyA]

He's a videographer. It's pretty safe.

Thanks IL! We're really proud of him.

[razz]

Cathy, may I suggest your son talk to his insurance company. They will often make suggestions of how such situations could be handled. I had a similar situation with offering oral services in a hospital setting. My insurance company read the clause and stated firmly that the hospital was way out of line in the level of indemnification demanded and offered me advice. The hospital backed down in my case as a result.

Also, if he belongs to an professional association, it may offer insurance that complies with the intent and concerns being raised when contracting services.

[CathyA]

Thanks for that info, razz. DS is having his insurance agent speak to the uni people. The uni people seem pretty darned inflexible. I think they are just used to blanket contracts and not allowing any deviations.
Hopefully it won't involve lawyers, as they are soooo expensive. We're hoping the insurance company agent can help.
I'm not sure if he's with a professional association, but I'll definitely mention this to him.

I told DS to talk to others similar to him in this situation, but he said they all signed the contract without even reading it!
Even though it's causing lots of problems, I'm just thankful that DH is very up on these things and can help guide DS alot.

Thanks again for your input!

[pinkytoe]

I told DS to talk to others similar to him in this situation, but he said they all signed the contract without even reading it!
I think this is fairly typical of most of our small business vendors. In the 15 years I have been here, nothing has ever happened and we have had a wide array of services - videographers included.

[CathyA]

Thanks pinkeytoe.