# Insurance Provisions > Insurance Provisions means all terms in a [schedule] concerning insurance. **Term:** Insurance Provisions **Last updated:** 2026-07-29 ## Definition ## What Insurance Provisions Means in a Contract Insurance Provisions refers to the set of contractual terms requiring one or both parties to obtain and maintain specified insurance coverage during the term of an agreement, and often for a period afterward. These clauses typically appear in a dedicated schedule or section and work alongside indemnity and liability clauses to create a comprehensive risk allocation framework. Rather than leaving losses to be resolved through litigation or negotiation after the fact, Insurance Provisions establish upfront which party bears financial responsibility for particular categories of harm, and how that responsibility will be funded. In practice, these provisions answer several practical questions: what types of insurance must be held (such as public liability, professional indemnity, or property insurance), what minimum coverage limits apply, who must be named as an additional insured or loss payee, and what evidence of coverage must be provided. The clauses may also specify what happens if a party fails to maintain the required insurance, such as a right to terminate or to obtain coverage independently and recover the cost. ## How Insurance Provisions Is Defined or Measured Insurance Provisions are typically measured by reference to specific, quantifiable criteria rather than vague assurances. A well-drafted clause will state exact coverage types and minimum monetary limits per occurrence and in the aggregate, the insurer's minimum financial rating, and the geographic scope of coverage. Some agreements also specify permissible deductibles or self-insured retentions, since a policy with an unreasonably high deductible may offer little practical protection to the other party. Measurement also extends to timing and evidence. Contracts commonly require certificates of insurance to be delivered before work begins, on renewal, and upon request, along with advance notice of cancellation or material change to the policy. Some provisions distinguish between claims-made and occurrence-based policies, which affects how long coverage must be maintained after the contract ends. - Coverage types and minimum limits - Named insured or additional insured status - Certificate and notice requirements - Duration, including any tail or run-off period ## Where Insurance Provisions Appears in Agreements Insurance Provisions commonly appear in construction contracts, supply agreements, service contracts, and outsourcing arrangements, wherever one party's activities create a meaningful risk of loss or injury to the other. They are especially prominent in sectors with high exposure, such as construction, healthcare, and transport, and are a standard feature of dedicated