[Fredslist] Indemnity insurance requirements

[ritasue at ritasue.com]

I need advice. When I was a small business, from 10-17 people. before being acquired by a large company and very rarely was asked if I have the kind of insurance described below, I would say, "No," and no potential client ever insisted upon it as a condition to go forward with a contract.

When I was acquired, the company I then worked for was large enough to have such insurance in place.

Now that I am back to being an even smaller business than before, what can I do to get around this requirement if the client insists upon it?

Thanks in advance,

RS

8.      INSURANCE & INDEMNIFICATION

8.1   During the Term, Seller will maintain, at its own expense, on an occurrence basis: (a) commercial general liability insurance (including contractual liability) of at least $2,000,000 per occurrence; (b) if available for the type of service Seller is providing, professional liability insurance (including errors and omissions coverage) of at least $2,000,000 per occurrence; (c) worker's compensation insurance that meets statutory requirements or satisfactory evidence that Seller is authorized to self-insure; and (d) employer's liability insurance of at least $500,000 per occurrence.  On X's request, Seller will provide insurance certificate(s) confirming Seller's compliance with all insurance requirements.  Each insurance policy must provide that it cannot be cancelled or changed without 30 days’ prior written notice to 3M.

8.2  Seller will indemnify, defend, and hold harmless 3M Entities, and their affiliates, successors, assigns, officers, directors, employees, and agents from any claim, liability, loss, damage, lien, judgment and cost, including attorneys’ fees and litigation expenses, with respect to: (a) Seller’s failure to comply with its obligations under this Agreement; and (b) any third party claims related to Seller's performance of its obligations under this Agreement, including, without limitation, those by Seller's employee, agent or subcontractor.



RitaSue Siegel  | President, IDSA, AIGA, DMI, AIA |
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