Risk Bytes | Good neighbour agreements
This Risk Byte provides a snapshot of the risks associated with 'good neighbour' agreements and why you and the neighbour you share resources with must have adequate insurance in place.
What are good neighbour agreements and why do they exist?
A good neighbour agreement describes the situation where operators with a close working relationship arrange to borrow or lend equipment, vehicles and staff for a certain period. These agreements are beneficial for the borrower and the lender. They are usually reciprocal agreements with both parties having something the other may need.
While good neighbour agreements can be beneficial, due to their casual nature it is important for both borrowers and lenders to be aware of the potential risks and be clear about where liabilities and responsibilities rest. This document outlines the potential risks of entering into these agreements without robust insurance in place, and the steps you can take to avoid them.