Vendor’s Coverage Sample Clauses
The 'Vendor’s Coverage' clause defines the insurance requirements that the vendor must maintain while performing services or supplying goods under the contract. Typically, this clause specifies the types and minimum amounts of insurance coverage, such as general liability, professional liability, or workers’ compensation, that the vendor must carry, and may require the vendor to provide proof of such coverage to the client. Its core practical function is to allocate risk by ensuring that the vendor has adequate insurance to cover potential liabilities, thereby protecting both parties from financial loss arising from accidents, errors, or other covered incidents during the course of the contract.
Vendor’s Coverage. The Vendor shall procure and maintain, or cause to be procured and maintained, in full force and effect the following minimum insurance coverages, at its sole expense, as set forth below. All such insurance carried shall be placed with such insurers having a minimum A.M. Best rating of A- VIII and be in such form, with such other applicable terms, conditions, limits and deductibles (subject to the minimum insurance coverages and terms below):