A Closer Look At Insurance Coverage Requirements In Commercial Contracts

Most commercial contracts address insurance coverage requirements in a standard boilerplate provision. While sufficient for some transactions, deals involving greater risk often require a more customized approach. For example, when contracting with a vendor for the provision of marketing services or for use of marketing tools or technology, the vendor will most likely require access to proprietary information about your customers or prospects. And if this information includes any “personal data,” as such term is defined under various consumer data protection laws, the level of risk will be much greater, and therefore, will require enhanced protections within the contract, including potentially increased insurance coverage.