Consultant contracts can be a minefield in the best of
circumstances and if a consultant agrees to provide a guarantee, a
warranty, or an enhanced performance standard, their insurance can
even be voided.
That is because errors and omissions policies often only provide
coverage for a failure to meet the prevailing standard of care of a
professional practicing in the relevant discipline. Guaranteeing
that the work will be “free of defects” or agreeing to
perform to the “highest standards”, may not be
covered.
Sometimes this type of problematic language is clear in the
proposed contract and should be rejected outright by the
consultant. At other times, the language used can be more ambiguous
but can still lead to a possible interpretation that poses a higher
standard on the consultant than their policy covers.
