By Sarah A. Johnson, Esq.
Most engineers recognize indemnification clauses can be problematic. Under any normal professional liability policy, such as the forms used by Certain Underwriters at Lloyd's of London, there is no coverage for liability assumed under a contract or agreement unless the insured would have such liability in the absence of a contract.
Waiting for payment for services rendered can quickly become frustrating if the client is slow to pay, or never sends payment at all. Choosing to take a client to court for non-payment can lead to other challenging issues that should be considered. Many engineers believe if they have not been paid for services rendered, their only recourse is to file a lawsuit for breach of contract to recover the amount due. However, these types of lawsuits can, and often do, result in retaliatory counterclaims against the engineer for negligence or breach of contract.