@Nicholas P.
Everyone is correct here. DO NOT sign this contract. The PM’s counsel tried sneaking in a “not it!” Clause. This means if a casualty occurs (doesn’t matter who is at fault). YOU are on the hook. They get to cry “Not it!” (The child’s game)
I’ve got thru this experience personally in matters outside of real estate. It’s not a good position to be in. I’m not a lawyer/not legal advice. Just a fellow investment property owner.
Everyone knows In the old days, if a painter fell off a ladder, his attorney would sue his employer and the homeowner and let the court sort it out, or more likely collect a settlement from both.
Ask your own insurance company on this for guidance, and if they would sign this clause. I’ll bet they say, “Not unless you want to pay us in truckloads of cash.”
Whether or not this clause is even enforceable is another question, but why even purchase that lottery ticket?
It also begs the question of, “does the pm actually have w/c insurance and if so, who does it cover?” They might have extremely poor coverage by saving money in this business model. In which case you’re back on the hook, should something go south.
You are their customer. So at very least you should demand to be listed as an “additional insured” on their insurance. Better still be listed as “first and primary” (ask your insurer). This way if one of their workers (employee or contract hire) breaks their leg and sues you. You get to be the one to cry, “Not It!”
Again, Your insurer is the best source of advice on this, but IMO, any client signing this would be very foolish.
