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Lead generation service agreements

  • 1.  Lead generation service agreements

    Posted 08-27-2018 14:19
    Lead generation services:

    If you sign up for their services, you will find some kind of agreement you are required to either sign or consent to. Buried deep inside these agreements are indemnification provisions that are quite disturbing. Basically, you, the small architectural firm, are required to indemnify the lead generation service, against any and all third party lawsuits, and pay for any defense costs, in some cases.

    What types of claims are you indemnifying the lead generation service from? Well, the most blatant example I've seen states "….claims, demands, liens, damages, causes of action, liabilities of any and every nature whatsoever".

    Does anyone bother to read this stuff?

    Before signing one particular company's agreement, I replied that I couldn't sign the agreement unless the indemnification provisions matched those contained in my E&O insurance. Otherwise, I'm in the insurance business. I was told by my contact that my request was passed up the chain of command, and they would get back to me. That was several weeks ago; I am still waiting for a response. At this point in time, I don't expect to receive one.

    Of, course, one can choose to ignore these provisions, or perhaps buy more insurance. But I don't care to raise my overhead, or waste my insurance agent's time. Two risks come to mind: 1) a disgruntled client decides to sue everyone involved, including the lead generation service, or 2) commingling internet content (yours, the lead generation service, and third parties) may be fertile ground for intellectual property infringement claims.

    Thoughts, anyone?

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    Craig Bagley AIA
    Principal
    Craig Bagley Architect
    Santa Cruz CA
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