Involved in business with another enterprise?  You could have liability under the joint enterprise doctrine.  This doctrine holds that the negligence of one organization is imputed to another where there is a "joint enterprise."

In a April 17, 2014 case, the Michigan Court of Appeals reiterated that those companies engaging in a joint enterprise can be liable for the acts of the other parties if every member has an equal right of control and joint responsibility for decision making and expenses.  However, there is no requirement that the parties share profits.

Joint enterprises can expose the parties to liability for the other company's acts.  This can sometimes be managed by way of a properly negotiated indemnity and hold harmless agreement.

Kenneth R Hale, Chairman of Cambridge Property & Casualty, a Marsh McLennan Agency, is one of the most experienced insurance professionals in the country.

Mr. Hale recently published an article entitled "Wishful Thinking" in which he discusses the most important lesson his organization has learned on insurance: Courts will enforce the words of insurance policies over any reasonable expectations of the insured.

Where most buyers get it wrong in buying insurance is assuming that insurance companies will make good on coverage even if the policy language supports a denial.  We see this type of wishful thinking almost every day in our practice.  In Michigan, the reasonable expectations doctrine is not recognized as a way to interpret unambiguous insurance policy language.

The insurance agent you select can, in some ways, be more important than the insurance company writing the account.  A competent agent will read the policies, negotiate the better terms and conditions and discuss potential coverage issues with the buyer.

For a complete copy of Mr. Hale's white paper, please click here.