How to Draft a Contractor Agreement That Excludes Company Liability for Accidents or Death?

Looking for an affidavit/agreement format between the company and contractors. During the provided work order, the company will not be responsible for any type of accident or death claim.

Dear Hiren Rohit,

Nature of your industry

What is the nature of your industry? What type of work will the contractor do? Will it be a service contract or a work contract? What is the level of exposure to hazards for the workers employed by the contractor?

Issuing a Purchase Order

You can issue the PO to the contractor, clearly mentioning the terms and conditions. You can add an indemnity clause in your contract provided it is a works contract. For example, in a multi-storeyed building, the owners' association awards a contract for the replacement of the lift. This is a work contract, and it is acceptable to insert an indemnity clause.

Service Contract Considerations

For the service contract, whether the contractor will accept the indemnity clause remains to be seen. For example, if you have awarded a contract to a security agency to provide security to your business premises, ongoing work and exposure to hazards are always present. Should you indemnify yourself against the injuries that the security personnel may sustain in case of fire or theft incidents?

Responsibility and Indemnity

There is nothing wrong with indemnifying one's company; however, some responsibility for compensating for loss of life or injuries in the workplace must be taken. While running a business, one cannot completely absolve oneself of responsibility.

Thanks,

Dinesh Divekar

The principal employer shall be held liable and responsible for all types of accidents or deaths that occur within their establishment. This responsibility is conferred due to its registration under the CL (R&A) Act for engaging a contractor. The rules state that the liability shifts to the principal employer when the contractor fails to fulfill the claim of liability. Therefore, no superficial affidavit, contract, or agreement would absolve the liability of the principal employer as fixed by the law of the land.