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PLAYBOOK TEMPLATES
HIPAA Business Associate Agreem
A HIPAA Business Associate Agreement establishes privacy and security obligations for handling protected health information. This playbook reviews compliance controls, breach notification, and indemnification provisions.
Indemnification & Liability
Negotiation strategy
Ensure that indemnification clauses are specific to the types of risks inherent in healthcare operations. Negotiate liability caps that reflect the potential exposure and align with insurance coverage.
Focus on limiting liability to direct damages and seek to exclude consequential losses. Propose jurisdiction-specific carve-outs to mitigate risk exposure.
Essential elements
1
Liability Cap
Limits on financial responsibility.
2
Indemnity Scope
Defines covered risks and claims.
3
Jurisdiction Compliance
Adherence to local legal standards.
Action framework
ACCEPT
Propose edits when liability caps are absent or unclear, ensuring they align with industry standards.
EDIT
Reject clauses that impose unlimited liability or lack jurisdictional compliance.
ADD
Add language to address specific risks not covered, such as data breaches or regulatory fines.
PRO TIP
Always align indemnity clauses with insurance policies to ensure coverage for potential liabilities.
Real-world examples
FAVORABLE
Balanced Indemnity Clause
"Each party shall indemnify the other against direct losses arising from breaches of this agreement, subject to a liability cap of $1,000,000."
NEUTRAL
Standard Indemnity Clause
"The Supplier shall indemnify the Healthcare Provider for losses directly resulting from the Supplier's negligence."
UNFAVORABLE
Unlimited Liability Clause
"The Healthcare Provider shall indemnify the Supplier for all claims, without limitation."
Alternative scenarios & positions
High-Risk Projects
In high-risk projects, consider increasing liability caps and including specific indemnities for critical risks such as patient safety.
Cross-Border Transactions
For cross-border deals, ensure indemnity clauses comply with international laws and address currency fluctuations in liability caps.
Technology Integration
When integrating new technology, include indemnities for data breaches and ensure liability caps cover potential cyber risks.
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