Basically the entire set of t&c’s🤣 There is one missing though - INSURANCE. This term goes hand-in-hand with indemnification and liability. When missed, you can inadvertently cap your ability to recover from a claim. Example - standard SA for services that cost $2M + insurance clause requires supplier to carry $500k (CL/PL/Auto as applicable) total aggregate. You just reduced your maximum claim amount possible from $2M to $500k because you didn’t review the insurance term and change it to $2M minimum.
And to go further, when procurement negates the critical step of collecting/validating supplier insurance certificates prior to contract execution, and during the term of the contract, the risk is the supplier isn’t carrying valid insurance during the provision of services and now you have $0 to claim against😳
These checks and edits of a standard form SA take 10 minutes and save potentially millions for the company when things go ‘sideways’. It’s a no brainer!
Well...yeah - I'm not a fan of skimming contracts or not doing the required level of work.
Yes, good suggestion on the insurance documents.
To add another layer onto your point, for multi-year contracts, you need to make sure you're are collecting their "new insurance" documents (or whatever else it might be such as ISO/SOC Certificates if you've added that into the contract too), to ensure they are maintaining the required levels.
Good pre & post signature contract management activities are a must.
Basically the entire set of t&c’s🤣 There is one missing though - INSURANCE. This term goes hand-in-hand with indemnification and liability. When missed, you can inadvertently cap your ability to recover from a claim. Example - standard SA for services that cost $2M + insurance clause requires supplier to carry $500k (CL/PL/Auto as applicable) total aggregate. You just reduced your maximum claim amount possible from $2M to $500k because you didn’t review the insurance term and change it to $2M minimum.
And to go further, when procurement negates the critical step of collecting/validating supplier insurance certificates prior to contract execution, and during the term of the contract, the risk is the supplier isn’t carrying valid insurance during the provision of services and now you have $0 to claim against😳
These checks and edits of a standard form SA take 10 minutes and save potentially millions for the company when things go ‘sideways’. It’s a no brainer!
Just read the entire contract👍
Well...yeah - I'm not a fan of skimming contracts or not doing the required level of work.
Yes, good suggestion on the insurance documents.
To add another layer onto your point, for multi-year contracts, you need to make sure you're are collecting their "new insurance" documents (or whatever else it might be such as ISO/SOC Certificates if you've added that into the contract too), to ensure they are maintaining the required levels.
Good pre & post signature contract management activities are a must.
Thanks so much for this comment.