This case illustrates how Rural Protect’s Contractual Liability Cover safeguards farms when a contractor disputes payment, facilitating settlement before trial.
Business Type: Mixed Farming
Section of Cover: Company Legal Liability
Applicable Cover: Contractual Liability Cover
Circumstance: Claim for non-payment of an invoice for disputed work
Legal Fees Value: £3,651
The Scenario:
The farm refused to pay a contractor due to issues with the quality of work. The contractor initiated Small Claims Court proceedings, threatening legal costs and reputational damage.
What Happened:
Rural Protect assisted the farm in defending the claim, negotiating settlement pre-trial. The cover funded legal representation to handle negotiations and bring the matter to a close.
The Outcome:
The matter was settled amicably before court, avoiding additional costs and disruption. Rural Protect ensured that the farm could protect its financial interests efficiently.
Things to Consider:
- Document all contractor work and the standard required incorporating systems of check during the works and agreeing clear routes to resolve disputes should they arise.
- Contractual Liability Cover provides access to negotiation and legal expertise, preventing escalation.
To understand more about Rural Protect and how it can help rural businesses, call us on 01653 609090 or email enquiries@hbunderwriting.co.uk.
