Noting an interest on an insurance policy

[LegalQuestion1]

Hi all, I've namechanged for this.

I'm a freelance consultant and I've got a new contract and there's part of a clause I'd like a bit of clarity on. Can this be done? It goes on to say if the insurance company don't do this then the insured has to pay up from their own resources.

The Consultant shall notify the insurers of the Company’s interest and shall cause such interest to be noted on such insurance policies together with a provision to the effect that, if any claim is brought or made by the Company against the Consultant in respect of which the Consultant would be entitled to receive indemnity under any of the insurance policies, the relevant insurer will indemnify the Company directly against such claim and any charges, costs and expenses in respect of such claim.

Thanks for any help!

Looks pretty standard to me. You have an insurance policy in case you make a mistake that results in a claim against you. They have an interest in you having a decent policy. What does your insurer say about it?

It's really simple and fairly standard. You simply notify your insurer and they mark the policy with the companies name as an interested party. You can supply a copy of the policy to the company for clarities sake if you want. As it is your obligation you will need to check each time that the policy is renewed that the company interest has been noted.

It's to protect the company, if you default in paying premium then they will be told