This issue refers to provisions that require a party to an agreement to obtain insurance against losses or damages that they may incur through the course of the agreement. Insurance requirements are an important component of liability provisions because they act as a mechanism to manage liability risks. Some agreements have requirements for specific types of insurance such as clinical trial or product liability, as well as general liability insurance.
Questions to consider when developing insurance provisions
- Will the parties be required to obtain insurance to protect against certain liabilities in relation to the project?
Example approaches found in the MAPGuide
- Insurance provisions found in the MAPGuide often require product developers to comply with one or more of the following requirements:
- Insurance against losses or damages relating to performance of the agreement as required by applicable legislation;
- Insurance against risks in a manner generally consistent with industry standards;
- Clinical trial insurance with minimum claim amounts per patient;
- General liability insurance with a minimum amount per insured event for personal injury and property damage.
- Some insurance provisions also specify that the insurance must continue for a specified period beyond completion of the project.