A services agreement is a written contract that outlines the scope of work to be performed, payment terms, responsibilities of both parties, and other important details. It`s important to ensure that your services agreement includes an insurance clause to protect both parties involved.
An insurance clause in a services agreement specifies the coverage required by the service provider. This clause outlines the type of insurance coverage required by the service provider to protect against any damage or liability that may arise while performing the services outlined in the agreement.
The types of insurance that may be required in a services agreement include general liability insurance, professional liability insurance, and workers` compensation insurance. General liability insurance covers damages resulting from accidents or injuries occurring on the service provider`s premises or a client`s premises. Professional liability insurance covers damages resulting from errors or omissions in the services provided by the service provider. Workers` compensation insurance covers employees of the service provider in the event of an injury or illness while on the job.
In addition to outlining the type of insurance required, the insurance clause should also specify the amount of coverage required. This amount should be sufficient to cover any potential damages or liability that may arise during the course of the service provider`s work.
It`s important to note that the insurance clause should also require the service provider to maintain insurance coverage for the duration of the agreement. This ensures that both parties are protected throughout the entire duration of the services provided.
In summary, including an insurance clause in a services agreement is crucial to protect both parties involved. It outlines the type and amount of insurance coverage required by the service provider to protect against any potential damages or liability that may arise during the course of the work. Be sure to consult with an attorney or insurance professional to ensure that your insurance clause is properly written and provides adequate protection for all parties involved.