Read the full obligation
Identify who must be protected, what claims are included and whether defense duties arise before fault is established. Look for obligations involving the owner’s property, employees, pollution and lost production. The effect of the clause depends on wording and applicable law, not its heading alone.
Separate enforceability from insurance
A legally enforceable promise is not necessarily insured, and a policy’s contractual liability provisions do not validate the contract. Review the relevant exclusions and definitions with the insurer. Broad guarantees, penalties or performance commitments deserve particular attention.
Align the contracting chain
Compare obligations accepted from the mine operator with those passed to subcontractors. Resolve inconsistencies and document negotiated changes. Avoid relying on a certificate or an umbrella limit as proof that every defense, indemnity or reimbursement obligation has been funded.
Illustrative review scenario
A service agreement requires the contractor to defend the owner against a broad category of claims, including allegations not limited to the contractor’s fault. Counsel should evaluate the obligation and applicable law, while the insurer reviews the relevant coverage provisions. A large liability limit does not answer whether the defense promise falls within the policy. Could the agreement require you to defend a claim before your own negligence is established? Have counsel explain the duty and ask the insurer how the relevant policy would evaluate that obligation.