How is it done? A contract clause—commonly entitled “Insurance”—establishes the type of insurance required, the amount of coverage, how proof will be provided that the party has been named, and other details. These clauses can be quite lengthy. Below is an example of an abbreviated version.
EXAMPLE. Insurance. Company shall obtain and maintain during the term of the agreement, at Company’s sole cost and expense, standard product liability insurance coverage naming Customer as an additional insured.