Ten things to check in every client contract: insurance requirements, additional insured and waiver wording, the indemnity scope, whether your liability is capped, and how long you must keep coverage after the work ends. Send it to your broker before signature, not after. Who this is for: Consulting firms reviewing a client agreement or procurement portal.
The short version
- Insurance requirements copied from construction templates are often unachievable for consulting firms.
- Additional insured on professional liability is the most common clause that needs narrowing.
- A limitation of liability capped at fees paid is the most valuable thing you can negotiate.
- Continuing insurance obligations of two to six years mean you cannot simply drop the policy later.
- Two days of review before signature is cheaper than every alternative.
The checklist
- Insurance requirements. Which policies, which limits, and are they achievable for a consulting firm? Requirements copied from construction contracts often are not.
- Additional insured. Which policies, and does your carrier actually offer it on that line?
- Primary and non contributory. Standard on general liability, unusual on professional liability.
- Waiver of subrogation. Confirm your carrier will endorse it before you agree.
- Indemnity scope. Is it limited to your own negligence, or does it reach losses you did not cause?
- Limitation of liability. Is your total exposure capped, ideally at fees paid?
- Duty to defend. A promise to fund the client's legal fees is a bigger commitment than it looks.
- Continuing insurance obligations. How long must you keep coverage in force after the work ends? Two to six years is common.
- Governing law and venue. Where would a dispute be heard, and would your policy respond there?
- Intellectual property and reuse. Who owns the deliverable, and what happens if the client reuses it somewhere you never contemplated?
The three clauses that most often need changing
| Clause as written | What to ask for instead |
|---|---|
| Additional insured on all policies including professional liability | Additional insured on general liability and auto only |
| Unlimited indemnity for any claim arising from the services | Indemnity limited to claims caused by your negligent acts, errors, or omissions |
| No limitation of liability | Liability capped at fees paid or a stated multiple of them |
None of these are unreasonable asks. Procurement teams see them constantly and most will accept them, particularly when your broker can explain that the market does not issue what the template demands.
Who reviews what
- Your broker: Whether the insurance requirements are achievable, what the endorsements cost, and how long they take to issue.
- Your attorney: The indemnity, limitation of liability, scope, payment, and termination terms.
- You: Whether the scope of work matches what you actually intend to deliver, which is the root of most claims.
Two days of review before signature is cheaper than any of the alternatives. For consulting firms, the contract is the document that decides how a bad outcome gets paid for.
What this looks like in practice
Illustrative example. Numbers are typical of claims we see and are not a promise of how any specific claim would be handled.
The setup: A consulting firm that signed a master services agreement without sending the insurance section to its broker.
The claim: The matter started with a restructuring plan that assumed headcount reductions the client could not legally make. The client claimed $240,000 in severance and legal exposure it had been told to expect at half that.
The cost: $41,000 in defense costs and $120,000 in settlement, $161,000 in total, paid inside the policy limit after the retention.
The lesson: Two requirements could not be met by any carrier in the market, and the firm was technically in breach from the first day of the engagement. A single email before signature would have surfaced both.
Frequently asked questions
Q: What should I check in a client contract before signing?
The insurance requirements, additional insured and waiver wording, the indemnity scope, whether liability is capped, the duty to defend, and how long you must maintain coverage after the work ends.
Q: Can my broker review a contract?
For the insurance provisions, yes, and they should. A broker can tell you what the market will issue, what it costs, and how long it takes. Legal effect is a question for your attorney.
Q: What if the contract demands coverage I cannot get?
Say so before signing and propose achievable alternatives. Signing a requirement you cannot meet puts you in breach from day one, which is worse than a short negotiation.
Q: How long do I have to keep insurance after a project ends?
Many contracts require two to six years of continuing coverage. Because professional liability is claims made, that obligation is real and it affects whether you can ever drop the policy.
Q: Is a limitation of liability clause realistic to ask for?
Yes. Capping liability at fees paid or a multiple of them is common in professional services agreements and many clients accept it, particularly on smaller engagements.
Q: Who wins if the contract and my policy disagree?
The policy decides what the insurer pays. The contract decides what you owe. When they differ, the gap is yours, which is why the review has to happen before signature.
How Morrow helps consulting firms
Morrow is a licensed independent commercial insurance brokerage that specializes in management & business consultants. Reviewing the insurance section of a client contract is exactly the kind of question we answer every week, and because we place this coverage every day we know which carriers write it well, which forms are broad, and which contract language actually needs an endorsement behind it.
- We read the contract clause and tell you what your current policy already does and does not do.
- We market your account to carriers that have real appetite for consulting firms rather than whoever answers first.
- We issue certificates the same day a client asks, with the endorsements listed correctly.
- We stay on the file at renewal so limits, retroactive dates, and contract requirements do not quietly drift.
Get in touch and we will see how we can help. Tell us what you do, send over any contract that is driving the requirement, and send us the question and we will tell you where you stand. Start at morrowinsure.com or reach the team through the contact options on that page.
One more thing. This article is general information for consulting firms and is not legal advice, tax advice, or a statement of coverage. Policy wording controls in every case, and forms vary by carrier and by state. Have a licensed advisor review your own policy and your own contract before you rely on any of it.
Last updated: Reviewed by the Morrow commercial lines team. Last updated August 2026.