Sample Insurance Clause
Insurance Clauses
Aims:
(1) The insurance programs of each party should remain separate. That is, there should not be a requirement that each party name the other as an insured on its property and liability policies.
(2) The third party should effect insurance so that the VMIA client has some comfort that liabilities will be satisfied, but there is not to be a requirement that rights of recovery are waived against the other party or its officers or employees.
Recommended Clause
n.1 The third party must effect and maintain in force during the Term of this Agreement and during any extension of that Term:
* (a) public and products liability insurance insuring it and its officers and employees against liability for:
(i) death of or injury to any person; or
(ii) loss of, destruction of or damage to property;
happening during the policy period and arising out of occurrences in connection with its business for an amount not less than $ in respect of any one claim unlimited as to the number of claims insured and with a deductible of no more than $ each and every claim.
*(b) insurance against loss of, damage to or destruction of property belonging to or leased by it or in its custody or possession (including improvements on, in or to land but otherwise excluding land) for full
reinstatement or replacement value subject to a limit of liability of not less than $ each loss and a deductible of not more than $ each loss.
*(c) professional indemnity insurance insuring against liability arising out of claims first made against it or its officers or employees during the policy period in respect of any act, error or omission committed or thing done in a professional capacity for an amount of not less than $ in respect of any one claim with a deductible of no more than $ each claim.
n.2 The third party must comply with and observe the terms of the insurance policies it effects as required by clause n.1 and must not do any thing which could result in any such policy being avoided or unenforceable or which may entitle the insurer to limit or reduce the amount otherwise payable under the policy.
n.3 The third party will, forthwith upon the written request of the VMIA client, provide satisfactory proof that the insurances required by clause n.1 have been effected.
n.4 The provisions of this clause survive the expiration or earlier termination of this Agreement and do not modify or limit any indemnity provided under clause (n-1).
* Delete if not applicable.
Sample Insurance Clause, 030511Page 1 of 2