System and Facility Damage and Insurance Sample Clauses

The "System and Facility Damage and Insurance" clause outlines the responsibilities and procedures related to damage to systems or facilities, as well as the insurance requirements to cover such risks. Typically, this clause specifies which party is responsible for repairing or replacing damaged equipment or infrastructure, and mandates that adequate insurance policies be maintained to cover potential losses. For example, it may require the operator of a facility to carry property and liability insurance, and to promptly notify the other party in the event of damage. The core function of this clause is to allocate risk and financial responsibility for damage, ensuring that both parties are protected and that any necessary repairs or replacements can be handled efficiently.