Insurance Issues In Commercial Contracts: A Checklist For Dealmakers

A wide variety of commercial contracts arising across industries include insurance coverage requirements. Although dealmakers often agree to counterparty forms or boilerplate language on this topic, doing so may result in the assumption of unnecessary risk. This article describes typical insurance clauses and advises on key drafting considerations. Though intended to provide context regarding a common issue businesses face, this article is merely a brief overview of the language and legal considerations contracting parties will encounter in the course of negotiating transactions. Since it provides general guidance based on principles that often apply, it is not legal advice and must not be relied upon in any specific situation, the results of which will depend on the particular policy terms and applicable law.