The contract that outgrew the cover

winning-major-contract

A new framework agreement carried liquidated damages and extended warranty obligations that sat well above the firm's existing liability limits.

A delivery failure under the new terms could have created a loss the business was not insured — or sized — to absorb.

An InduX review would test the contract's liability, warranty and delivery terms before signature and compare insurance arrangements with the new profile.

The intended result would be limits, indemnity clauses and interruption assumptions aligned before the first order ships, rather than after a dispute or claim.

A fabrication business won a multi-year framework agreement that roughly doubled its order book. Internally it was celebrated as a growth milestone. Quietly, the contract introduced liquidated damages, extended warranty obligations and delivery penalties that sat well above the firm's existing liability limits and interruption assumptions. Had the review happened at renewal, it would have happened too late. The exposure existed from the moment the contract was signed. The discipline that mattered was reviewing the risk position against the new commitment before the business committed to it — and aligning cover to the new operational and contractual profile before the first delivery.

The right time to review contractual liability is before signature — not after a dispute.