Customer Contract Insurance Requirements
How to read insurance clauses in customer contracts before they become a revenue blocker.
Insurance clauses often appear late in procurement, just when the sales team wants a signature. The clause might look simple, but it can create obligations the current policy does not meet.
Start with the actual work
The insurance clause should be read against what the company is doing for the customer. Software access, implementation, advice, hosting, hardware supply and data processing can require different cover responses.
Check limits, classes and endorsements
Common requests include professional indemnity, public liability, cyber, workers compensation, certificates of currency and interested party notations. Some requests are standard, and some are copied from templates that do not fit the deal.
Watch the indemnity clause
The insurance clause is only one part of the risk. Broad indemnities, uncapped liability, jurisdiction, privacy obligations and cyber security requirements can create exposure beyond the policy.
Common questions
What is a certificate of currency?
A certificate of currency is evidence that a policy is in place at a point in time. It is not the full policy and does not prove every contractual requirement is covered.
Can a contract ask for insurance the business does not need?
Yes. Customer templates often ask for generic covers or limits. A broker can help identify what is commercially reasonable and what needs negotiation.
Should a broker review the contract?
Yes, especially where the customer is asking for high limits, broad indemnities, cyber obligations, overseas jurisdiction or interested party wording.
Need this applied to your business?
UpSure can review your company, contracts and current cover, then help decide whether an instant or broker-led pathway is appropriate.