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PLAYBOOK TEMPLATES

Warranty Service Agreement

A Warranty Service Agreement details how defects, repairs, and replacements are handled during a product’s warranty period. This playbook emphasizes negotiating fair remedies, service levels, and liability limitations that align with operational realities.

Insurance & Risk Mitigation

Why This Matters: Insufficient or misaligned insurance exposes the client to uncovered losses and financial strain during a claim event.

Negotiation strategy

If you're the Customer:

Ensure that the insurance requirements align with the company's risk profile and industry standards. Request regular updates on policy status and changes to maintain continuous coverage.

If you're the Manufacturer:

Negotiate for reasonable insurance limits that reflect the scope of work and potential risks. Provide timely proof of insurance and notify the company of any changes to avoid contract breaches.

Essential elements

1

Insurance Coverage

Types and limits of insurance.
2

Proof of Insurance

Documentation of active policies.
3

Policy Changes Notification

Timely updates on policy changes.

Action framework

ACCEPT

Propose edits if coverage limits are insufficient or not industry-standard.

EDIT

Reject if the clause lacks essential insurance types or proof requirements.

ADD

Add language for indemnity provisions or additional coverage for high-risk activities.

PRO TIP

Regularly review and update insurance requirements to reflect changes in risk exposure and industry standards.

Example clauses

FAVORABLE

Comprehensive Insurance Clause

"The Contractor shall maintain general liability insurance with a minimum limit of $1,000,000 per occurrence, professional liability insurance with a minimum limit of $500,000, and workers' compensation insurance as required by law. The Contractor shall provide proof of insurance upon request and notify the Company of any policy changes or cancellations within 30 days."
NEUTRAL

Standard Insurance Clause

"The Contractor shall maintain insurance coverage as deemed necessary by the Company, with proof of insurance provided annually and notice of any policy changes or cancellations within 60 days."
UNFAVORABLE

Insufficient Insurance Clause

"The Contractor shall maintain insurance coverage at their discretion, with no requirement for proof or notification of changes."

Fallbacks

High-Risk Projects

For projects involving high-risk activities, additional coverage or higher limits may be necessary to ensure adequate protection against potential liabilities.

Industry-Specific Requirements

In industries with specific insurance standards, ensure clauses meet or exceed these requirements to align with best practices.

International Operations

When operating internationally, consider local insurance regulations and adjust coverage requirements accordingly to ensure compliance.
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