Verification of coverage clause: Copy, customize, and use instantly
Introduction
A verification of coverage clause serves to confirm that a party has obtained and maintained the required insurance coverage as agreed in the contract. It supports clarity and compliance by ensuring transparency regarding insurance obligations, making it an essential part of contracts involving liability, risk management, or ongoing services.
Below are templates for verification of coverage clauses tailored to different scenarios. Copy, customize, and insert them into your agreement.
Buyer-friendly variation
This variation prioritizes the buyer's ability to confirm the seller’s compliance with insurance obligations, ensuring timely access to documentation.
The [seller/service provider] shall, upon request from the [buyer/client], provide certificates of insurance or other verification documents confirming compliance with the insurance requirements outlined in this agreement. Such documents shall be provided within [X] business days of the request.
Seller-friendly variation
This variation limits the frequency of requests and specifies the type of documentation the seller is obligated to provide.
The [seller/service provider] agrees to furnish certificates of insurance to the [buyer/client] no more than [once per quarter] upon written request. These certificates shall detail the applicable insurance coverage, policy limits, and expiration dates.
Neutral variation
This variation balances the rights and obligations of both parties, ensuring mutual accountability.
Each party agrees to provide verification of insurance coverage as specified in this agreement within [X] business days of receiving a written request. Verification documents shall include policy details, coverage limits, and expiry dates.
High-risk scenario variation
This variation includes additional protections for high-risk scenarios, such as ongoing notification of changes or cancellations.
The [seller/service provider] shall provide certificates of insurance confirming compliance with the insurance requirements of this agreement within [X] business days of execution. Additionally, the [seller/service provider] shall notify the [buyer/client] of any material changes, cancellations, or expirations of the required policies at least [X] days in advance.
Buyer-friendly variation
This variation mandates immediate access to insurance documents to protect the buyer's interests.
The [seller/service provider] agrees to provide certificates of insurance upon the [buyer/client]'s request, confirming that all insurance requirements under this agreement are met. Failure to do so within [X] business days will be considered a material breach of this agreement.
Seller-friendly variation
This variation sets reasonable limits on the seller's obligations to provide verification.
The [seller/service provider] shall provide certificates of insurance to the [buyer/client] only upon initial execution of this agreement and upon renewal of the policies, or as otherwise reasonably requested by the [buyer/client].
Neutral variation
This variation allows for mutual verification between parties.
Both parties shall provide certificates of insurance upon written request, demonstrating compliance with the insurance obligations stated in this agreement. Such documentation must be submitted within [X] business days of receiving the request.
Project-specific variation
This variation ensures verification of insurance for project-specific agreements.
The [seller/service provider] shall submit a certificate of insurance specifically covering the project referenced in this agreement within [X] business days of execution. The certificate must reflect the required coverage, policy limits, and expiration dates as outlined herein.
Annual verification variation
This variation introduces periodic updates for ongoing contracts.
The [seller/service provider] shall provide updated certificates of insurance to the [buyer/client] annually, verifying that all required policies remain in force and comply with this agreement's provisions.
Emergency access variation
This variation is for contracts requiring immediate verification in critical scenarios.
The [seller/service provider] shall make certificates of insurance available to the [buyer/client] within [24 hours] of a written request in situations involving potential claims or urgent liability concerns.
Comprehensive coverage verification
This variation requires additional detail in the verification documents.
The [seller/service provider] agrees to furnish certificates of insurance to the [buyer/client] upon request, including policy declarations, endorsements, and any riders necessary to verify compliance with this agreement. Such documents must be provided within [X] business days.
Notification-focused variation
This variation includes obligations to notify of any policy changes.
The [seller/service provider] shall provide certificates of insurance within [X] business days of execution of this agreement and notify the [buyer/client] in writing of any policy cancellations, reductions, or material modifications at least [X] days before such changes take effect.
Industry-specific variation
This variation addresses unique insurance requirements for specific industries.
The [seller/service provider] shall provide certificates of insurance reflecting compliance with the industry-specific insurance requirements detailed in this agreement. Documentation must be submitted within [X] business days of request and updated upon policy renewal.
Risk allocation variation
This variation ties insurance verification to liability allocation.
The [seller/service provider] shall submit certificates of insurance to the [buyer/client] upon request, confirming compliance with the required coverages to support the allocation of risk defined in this agreement. Failure to provide such documentation within [X] business days may result in a suspension of services.
Single-event verification
This variation applies to agreements requiring insurance verification for a specific event or activity.
The [seller/service provider] agrees to provide a certificate of insurance specifically for the event or activity described in this agreement within [X] business days of the request. The certificate must confirm coverage as required by this agreement.
Mutual verification obligation
This variation applies to agreements where both parties must verify coverage.
Both parties shall provide certificates of insurance to each other upon request, confirming compliance with their respective insurance obligations under this agreement. Requests must be fulfilled within [X] business days.
Third-party beneficiary verification
This variation is for agreements involving third-party beneficiaries.
The [seller/service provider] shall provide certificates of insurance naming the [buyer/client] as an additional insured upon request. Such certificates must be provided within [X] business days of execution and updated upon policy renewal.
Continuous verification requirement
This variation ensures ongoing compliance throughout the contract term.
The [seller/service provider] agrees to maintain and provide updated certificates of insurance every [X] months during the term of this agreement. The certificates must confirm that all required coverages remain active and compliant with this agreement.
Retroactive verification
This variation applies to scenarios requiring past policy confirmation.
The [seller/service provider] shall provide certificates of insurance verifying coverage for the period beginning [start date] to [end date]. Documentation must be submitted within [X] business days of the request.
Policy summary inclusion
This variation includes a requirement for a policy summary alongside the certificate.
The [seller/service provider] shall submit certificates of insurance along with a summary of policy coverages, limits, and exclusions upon request. All documentation must be delivered within [X] business days.
Automated verification option
This variation accommodates automated insurance tracking systems.
The [seller/service provider] shall grant access to an automated insurance verification system that allows the [buyer/client] to confirm compliance with the requirements of this agreement at any time.
Post-termination verification
This variation ensures coverage verification after the agreement ends.
Upon termination of this agreement, the [seller/service provider] shall provide a certificate of insurance verifying compliance with any post-termination insurance obligations specified herein. The certificate must be submitted within [X] business days after termination.
Proof of endorsement variation
This variation requires proof of additional insured status.
The [seller/service provider] agrees to provide a certificate of insurance and a copy of the endorsement naming the [buyer/client] as an additional insured upon request. Documentation must be submitted within [X] business days.
Renewal tracking verification
This variation focuses on policy renewals.
The [seller/service provider] shall provide updated certificates of insurance within [X] business days of policy renewal to confirm continued compliance with this agreement's requirements.
Independent verification
This variation allows the buyer to verify coverage through an independent source.
The [buyer/client] reserves the right to verify the [seller/service provider]'s compliance with insurance requirements directly with the insurer. The [seller/service provider] agrees to cooperate by providing any necessary authorization or documentation.
High-frequency verification
This variation requires regular updates for high-risk contracts.
The [seller/service provider] shall submit certificates of insurance every [X weeks/months] during the term of this agreement to confirm continued compliance with all insurance obligations.
Expedited verification
This variation is for scenarios requiring very quick verification.
The [seller/service provider] agrees to provide certificates of insurance within [48 hours] of any request by the [buyer/client]. Such requests may be made at any time during the term of this agreement.
Comprehensive liability coverage
This variation focuses on specific liability requirements.
The [seller/service provider] shall provide certificates of insurance confirming comprehensive liability coverage, including general, professional, and umbrella liability, within [X] business days of the request.
Self-insurance verification
This variation addresses parties that self-insure.
If the [seller/service provider] maintains self-insurance, they shall provide a letter from a certified actuary confirming sufficient reserves to meet the insurance requirements of this agreement. Such documentation must be submitted within [X] business days of the request.
Claims history disclosure
This variation includes disclosure of claims history along with insurance verification.
The [seller/service provider] shall provide certificates of insurance upon request, accompanied by a summary of claims history for the past [X years], within [X] business days.
Limited verification window
This variation restricts the time frame for submitting certificates.
The [seller/service provider] agrees to provide certificates of insurance only during the first [X days/months] of the agreement's term. Failure to provide the required documents within this timeframe may result in contract termination.
Government compliance verification
This variation ensures compliance with specific regulatory insurance requirements.
The [seller/service provider] shall submit certificates of insurance that meet the minimum standards required by [specific law or regulation] within [X] business days of the request. Failure to comply may result in penalties or contract suspension.
Multi-tier verification
This variation includes a structured process for verification at different stages.
The [seller/service provider] shall provide certificates of insurance at the following stages: (1) upon execution of this agreement, (2) annually on the anniversary of the agreement, and (3) upon request during the term. Each certificate must confirm compliance with the requirements outlined herein.
Interim policy verification
This variation focuses on temporary policies or gaps in coverage.
In cases where permanent insurance policies are not yet active, the [seller/service provider] shall provide certificates of interim coverage, ensuring compliance with this agreement, within [X] business days of execution.
Policy reinstatement verification
This variation addresses scenarios involving reinstated policies.
The [seller/service provider] agrees to provide a certificate of insurance verifying reinstatement of coverage following any lapse or cancellation. Such documentation must be submitted within [X] business days of reinstatement.
Specific coverage type verification
This variation targets particular types of insurance.
The [seller/service provider] shall provide certificates of insurance verifying compliance with the [specific type of insurance, e.g., professional liability] requirements under this agreement within [X] business days of the request.
Policy endorsement updates
This variation ensures ongoing updates for endorsements.
The [seller/service provider] shall submit certificates of insurance and updated endorsements reflecting any changes to coverage, naming the [buyer/client] as an additional insured, within [X] business days of such changes.
Long-term agreement verification
This variation accommodates extended contract periods.
The [seller/service provider] shall provide certificates of insurance every [X years] during the term of this agreement, verifying compliance with all requirements, including renewals and updated limits.
Performance-based verification
This variation ties verification to performance milestones.
The [seller/service provider] shall provide certificates of insurance upon reaching specific performance milestones, as defined in this agreement. Each certificate must confirm active compliance with all insurance requirements.
Default trigger verification
This variation activates verification upon contract default.
In the event of a default by the [seller/service provider], the [buyer/client] may request a certificate of insurance to verify ongoing compliance with this agreement. Such certificates must be provided within [X] business days of the request.
Real-time digital verification
This variation integrates digital access to verification.
The [seller/service provider] shall provide the [buyer/client] with digital access to insurance certificates through a secure platform, allowing real-time verification of compliance with this agreement's requirements.
Multi-party verification
This variation includes multiple stakeholders in the verification process.
The [seller/service provider] agrees to submit certificates of insurance to the [buyer/client] and any third parties designated in this agreement within [X] business days of execution.
Cross-border verification
This variation applies to international agreements.
For agreements involving operations in multiple jurisdictions, the [seller/service provider] shall provide certificates of insurance verifying compliance with the insurance requirements in each applicable jurisdiction within [X] business days of the request.
Verification upon asset transfer
This variation addresses scenarios involving asset transfers.
If assets are transferred under this agreement, the [seller/service provider] shall provide certificates of insurance confirming coverage for the transferred assets within [X] business days of the transfer date.
Layered insurance verification
This variation ensures coverage from primary and secondary policies.
The [seller/service provider] shall provide certificates of insurance for both primary and umbrella/excess policies, verifying compliance with the aggregate coverage requirements of this agreement within [X] business days of the request.
Liability-specific verification
This variation ensures coverage for specific liabilities.
The [seller/service provider] shall submit certificates of insurance specifically verifying coverage for [specific liability, e.g., cyber liability] within [X] business days of the request.
Partnership agreement verification
This variation is tailored for partnerships or joint ventures.
Each party to this partnership agreement shall provide certificates of insurance verifying compliance with the insurance provisions applicable to their responsibilities within [X] business days of execution.
Renewal gap verification
This variation addresses potential gaps during policy renewals.
The [seller/service provider] shall provide temporary certificates of insurance to cover any gaps during policy renewal periods, ensuring continuous compliance with this agreement.
Regulatory approval verification
This variation ensures insurance compliance for regulatory purposes.
The [seller/service provider] agrees to provide certificates of insurance required for regulatory approvals under this agreement within [X] business days of the approval request.
Specific project phase verification
This variation ties verification to project phases.
The [seller/service provider] shall submit certificates of insurance for each phase of the project detailed in this agreement, verifying compliance with the insurance requirements within [X] business days of the start of each phase.
Escalation clause verification
This variation includes adjustments for escalating risks.
The [seller/service provider] shall provide updated certificates of insurance reflecting any increased coverage limits required under the escalation provisions of this agreement within [X] business days of notice.
Early termination verification
This variation addresses verification upon early termination of the agreement.
If this agreement is terminated early, the [seller/service provider] shall provide a certificate of insurance verifying compliance with any post-termination obligations within [X] business days of termination.
Policy audit verification
This variation includes an audit of insurance policies.
The [seller/service provider] agrees to cooperate with periodic audits of insurance coverage and provide certificates of insurance and related documentation as requested by the [buyer/client] within [X] business days.
Initial deposit verification
This variation ties insurance verification to the initial contract payment.
The [seller/service provider] shall provide a certificate of insurance verifying compliance with the required coverage before receiving the initial deposit under this agreement. Documentation must be submitted within [X] business days of contract execution.
Disaster recovery verification
This variation ensures insurance coverage for disaster recovery plans.
The [seller/service provider] shall submit a certificate of insurance confirming disaster recovery coverage, including business interruption insurance, within [X] business days of the request.
Indemnity-backed verification
This variation integrates insurance verification with indemnity provisions.
The [seller/service provider] shall provide certificates of insurance that verify compliance with coverage requirements supporting the indemnity obligations in this agreement. Documentation must be provided within [X] business days of execution.
Training program verification
This variation applies to training or educational contracts.
The [seller/service provider] agrees to submit certificates of insurance verifying coverage for instructors and participants under this agreement within [X] business days of the request.
Franchise-specific verification
This variation is for franchise agreements.
The [franchisee] shall provide certificates of insurance to the [franchisor] verifying compliance with the insurance requirements outlined in the franchise agreement. Such certificates must be submitted within [X] business days of signing.
Pre-delivery verification
This variation ties insurance verification to product or service delivery.
The [seller/service provider] agrees to provide certificates of insurance verifying coverage before delivering any products or services under this agreement. The certificates must be submitted within [X] business days of the delivery date.
Vendor compliance verification
This variation focuses on compliance in vendor agreements.
The [vendor] shall provide certificates of insurance verifying compliance with the minimum coverage standards outlined in this agreement. Documentation must be submitted within [X] business days of execution and updated annually.
Event-specific verification
This variation is tailored for contracts involving single events.
The [seller/service provider] agrees to provide certificates of insurance for the event described in this agreement, confirming all required coverages, at least [X] business days before the event date.
Subcontractor verification
This variation extends insurance requirements to subcontractors.
The [seller/service provider] shall provide certificates of insurance for all subcontractors engaged under this agreement, verifying that their coverage meets the requirements outlined herein. Documentation must be submitted within [X] business days of subcontractor onboarding.
Escrow fund verification
This variation integrates insurance verification with escrow arrangements.
The [seller/service provider] shall provide certificates of insurance verifying compliance with the required coverage before the release of any funds held in escrow under this agreement. Documentation must be provided within [X] business days of the request.
Payment milestone verification
This variation links verification of coverage to specific payment milestones.
The [seller/service provider] shall provide certificates of insurance verifying compliance with all required coverage before the [buyer/client] releases any payment under this agreement. Documentation must be submitted within [X] business days of each payment milestone.
Third-party insurance verification
This variation is for cases where third-party insurers are involved.
The [seller/service provider] agrees to provide certificates of insurance from their third-party insurer confirming compliance with the required insurance coverage as specified in this agreement. The certificates must be provided within [X] business days of execution.
Cybersecurity liability verification
This variation is specific to cybersecurity insurance.
The [seller/service provider] shall provide certificates of insurance confirming compliance with cybersecurity liability coverage as required by this agreement. The certificates must be submitted within [X] business days.
Umbrella policy verification
This variation applies to umbrella or excess insurance policies.
The [seller/service provider] agrees to submit certificates of insurance for both the primary insurance and umbrella coverage, verifying compliance with the insurance requirements of this agreement. Documentation must be provided within [X] business days.
Worker's compensation verification
This variation ensures worker's compensation coverage.
The [seller/service provider] shall provide certificates of insurance verifying worker's compensation coverage as required by law and as outlined in this agreement. The certificates must be submitted within [X] business days of execution.
Non-disclosure agreement verification
This variation ensures confidentiality coverage.
The [seller/service provider] agrees to provide certificates of insurance verifying coverage for non-disclosure and confidentiality obligations under this agreement. Documentation must be submitted within [X] business days.
Global operations verification
This variation is for international contracts.
The [seller/service provider] shall provide certificates of insurance verifying compliance with the insurance requirements across all jurisdictions where operations are conducted under this agreement. Documentation must be submitted within [X] business days of the request.
Temporary coverage verification
This variation is for short-term or temporary coverage verification.
The [seller/service provider] agrees to provide certificates of temporary insurance coverage for the duration of this agreement, ensuring compliance with the minimum coverage requirements outlined herein. Documentation must be provided within [X] business days.
Indirect liability verification
This variation ensures coverage for indirect liabilities.
The [seller/service provider] agrees to submit certificates of insurance confirming coverage for indirect liabilities, including third-party claims, as required by this agreement. The certificates must be submitted within [X] business days.
Product liability verification
This variation requires product liability insurance verification.
The [seller/service provider] shall provide certificates of insurance confirming product liability coverage as required for the products provided under this agreement. The certificates must be provided within [X] business days of execution.
Warranty coverage verification
This variation ensures verification of insurance for warranty-related risks.
The [seller/service provider] shall submit certificates of insurance confirming warranty coverage for all products or services provided under this agreement. Documentation must be submitted within [X] business days of the request.
Renewable policy verification
This variation is for policies with renewal conditions.
The [seller/service provider] agrees to provide updated certificates of insurance verifying that coverage remains in force upon the renewal of any applicable policies during the term of this agreement. Documentation must be provided within [X] business days of renewal.
Claims-made policy verification
This variation applies to claims-made insurance policies.
The [seller/service provider] shall provide certificates of insurance verifying coverage under a claims-made policy, including the retroactive date and coverage period, within [X] business days of the request.
Liability cap verification
This variation ensures verification of liability caps.
The [seller/service provider] agrees to submit certificates of insurance that confirm coverage for liability caps as specified in this agreement. Documentation must be provided within [X] business days.
Exclusion verification
This variation addresses insurance exclusions.
The [seller/service provider] shall provide certificates of insurance verifying the absence of exclusions that would affect coverage related to the risks defined in this agreement. Documentation must be submitted within [X] business days of request.
Substantial compliance verification
This variation accommodates partial compliance with insurance requirements.
The [seller/service provider] agrees to submit certificates of insurance showing substantial compliance with the insurance requirements of this agreement, even if full compliance is not possible. Documentation must be provided within [X] business days.
Subcontractor insurance verification
This variation ensures subcontractor insurance compliance.
The [seller/service provider] shall provide certificates of insurance for all subcontractors involved in fulfilling this agreement, verifying that their coverage meets the required insurance standards. Documentation must be provided within [X] business days.
Risk management verification
This variation ensures comprehensive risk management coverage.
The [seller/service provider] agrees to provide certificates of insurance confirming that their coverage includes all necessary risk management provisions, including professional and general liability insurance, within [X] business days.
Customized policy verification
This variation is for customized insurance policies.
The [seller/service provider] shall provide certificates of insurance for customized insurance policies designed specifically for this agreement, detailing the coverage, exclusions, and limits, within [X] business days of the request.
Fraud protection verification
This variation focuses on insurance for fraud protection.
The [seller/service provider] agrees to submit certificates of insurance verifying coverage for fraud protection and identity theft risks, ensuring compliance with the relevant clauses of this agreement. Documentation must be provided within [X] business days.
Early-stage verification
This variation is for contracts at the initial stages of a business relationship.
The [seller/service provider] shall provide certificates of insurance verifying coverage for any potential risks related to the early-stage activities outlined in this agreement, such as initial product development or market research, within [X] business days.
Tax-related verification
This variation ensures tax-related coverage.
The [seller/service provider] shall provide certificates of insurance verifying coverage for tax-related risks, including tax audits and penalties, within [X] business days of the request.
Performance bond verification
This variation requires verification of performance bond coverage.
The [seller/service provider] agrees to provide certificates of insurance confirming coverage under a performance bond, ensuring that the required bond is active and in place during the term of this agreement. Documentation must be provided within [X] business days.
Joint venture insurance verification
This variation applies to joint ventures.
Each party to the joint venture shall provide certificates of insurance verifying that their respective coverage meets the requirements outlined in this agreement. Documentation must be submitted within [X] business days of the request.
Product recall verification
This variation addresses insurance for product recall scenarios.
The [seller/service provider] shall provide certificates of insurance confirming coverage for product recalls and related liabilities within [X] business days of the request.
Security-related verification
This variation ensures verification of security coverage.
The [seller/service provider] agrees to provide certificates of insurance confirming security-related coverage, including liability insurance for any security services provided, within [X] business days of the request.
Public liability verification
This variation focuses on public liability insurance.
The [seller/service provider] shall provide certificates of insurance verifying compliance with public liability insurance requirements under this agreement. Documentation must be provided within [X] business days.
Environmental liability verification
This variation ensures environmental liability coverage.
The [seller/service provider] agrees to submit certificates of insurance verifying coverage for environmental liabilities, including pollution, waste management, and contamination risks, within [X] business days.
Supply chain verification
This variation is for agreements involving complex supply chains.
The [seller/service provider] shall provide certificates of insurance verifying coverage for any risks associated with the supply chain, including transportation and logistics, within [X] business days of the request.
Workers' compensation and occupational safety verification
This variation addresses workers' compensation and safety risks.
The [seller/service provider] agrees to submit certificates of insurance verifying compliance with workers' compensation and occupational safety insurance requirements within [X] business days of the request.
Credit insurance verification
This variation ensures credit insurance coverage.
The [seller/service provider] shall provide certificates of insurance verifying coverage under a credit insurance policy to protect against non-payment risks within [X] business days of the request.
Malpractice insurance verification
This variation is for contracts involving professional services.
The [service provider] shall provide certificates of insurance confirming malpractice coverage for professional services rendered under this agreement. The certificates must be submitted within [X] business days.
Business interruption verification
This variation focuses on business interruption insurance.
The [seller/service provider] agrees to provide certificates of insurance confirming coverage for business interruption risks as outlined in this agreement. Documentation must be submitted within [X] business days.
Product warranty verification
This variation requires insurance for warranty claims.
The [seller/service provider] shall submit certificates of insurance verifying coverage for product warranties and related claims under this agreement. Documentation must be provided within [X] business days.
Liability cap exception verification
This variation addresses liability caps and exceptions.
The [seller/service provider] agrees to provide certificates of insurance confirming that the required liability caps are met and any exceptions to the caps as outlined in this agreement. Documentation must be provided within [X] business days.
Non-compete insurance verification
This variation ensures coverage for non-compete clauses.
The [seller/service provider] agrees to provide certificates of insurance verifying coverage for any liabilities arising from non-compete clauses or non-solicitation terms within this agreement. Documentation must be provided within [X] business days.
Aircraft liability verification
This variation focuses on aviation-related insurance.
The [seller/service provider] shall provide certificates of insurance verifying coverage for any liabilities related to the use of aircraft under this agreement, including commercial aviation risks, within [X] business days.
Marine liability verification
This variation is for maritime-related contracts.
The [seller/service provider] agrees to provide certificates of insurance confirming marine liability coverage for any risks associated with maritime transport under this agreement. Documentation must be submitted within [X] business days.
Cybersecurity breach insurance verification
This variation ensures cybersecurity breach coverage.
The [seller/service provider] shall submit certificates of insurance verifying coverage for cybersecurity breaches, including data loss and hacking incidents, within [X] business days.
Legal defense cost verification
This variation focuses on insurance for legal defense.
The [seller/service provider] agrees to provide certificates of insurance verifying coverage for legal defense costs in connection with any disputes arising under this agreement. Documentation must be submitted within [X] business days.
Privacy liability verification
This variation ensures privacy liability coverage.
The [seller/service provider] agrees to provide certificates of insurance confirming coverage for privacy liabilities, including data protection and privacy breach risks, within [X] business days.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.