{"id":20511,"date":"2026-11-09T11:47:28","date_gmt":"2026-11-09T09:47:28","guid":{"rendered":"https:\/\/lamdabroking.com\/?p=20511"},"modified":"2026-11-09T11:49:11","modified_gmt":"2026-11-09T09:49:11","slug":"saas-contract-insurance-requirements-us-customer","status":"publish","type":"post","link":"https:\/\/lamdabroking.com\/en\/saas-contract-insurance-requirements-us-customer\/","title":{"rendered":"SaaS Contract Insurance Requirements: US Customers"},"content":{"rendered":"<h2 dir=\"ltr\">The Insurance Clause in a SaaS Contract with a US Customer: What to Check Before You Sign<\/h2>\n<p dir=\"ltr\"><span style=\"font-weight: 400;\">The insurance clause in a SaaS contract with a US enterprise customer sets out which policies the vendor must carry, at what limits, with which endorsements and for how long. It is a contractual obligation like any other. A vendor that signs a requirement its policies do not meet is in breach on the day of signature, before anyone has made a claim.<\/span><\/p>\n<p dir=\"ltr\"><span style=\"font-weight: 400;\">The clause usually sits in the MSA or in a vendor onboarding form, and most sales teams first meet it when the customer&#8217;s vendor-risk team asks for a certificate. This page deals with negotiating the clause before signature; the certificate that follows it is discussed further down.<\/span><\/p>\n<h2 dir=\"ltr\">Key points<\/h2>\n<p dir=\"ltr\"><b>What the customer asks for<\/b><span style=\"font-weight: 400;\">\u00a0&#8211; A typical package is built from commercial general liability (CGL) on an occurrence basis and a layer of technology errors and omissions (Tech E&amp;O) and cyber, sometimes with an umbrella policy above them. Alongside the lines sit conditions on the customer&#8217;s standing under the policies and on the insurer&#8217;s financial strength.<\/span><\/p>\n<p dir=\"ltr\"><b>The certificate records; the policy binds<\/b><span style=\"font-weight: 400;\">\u00a0&#8211; A US certificate of insurance states expressly that it confers no rights on the holder. Additional insured status and a waiver of subrogation exist only if the policy itself has been endorsed.<\/span><\/p>\n<p dir=\"ltr\"><b>Lloyd&#8217;s usually satisfies the clause once the wording is fixed<\/b><span style=\"font-weight: 400;\">\u00a0&#8211; Lloyd&#8217;s syndicates write direct US business on a surplus lines basis. A demand for an &#8220;admitted&#8221; insurer therefore calls for a redraft of the clause, and rarely for a change of insurer.<\/span><\/p>\n<p dir=\"ltr\"><b>Limits and caps have to line up<\/b><span style=\"font-weight: 400;\">\u00a0&#8211; Policy limits should match the contract&#8217;s super-cap for data breach, and a broad contractual indemnity may fall within the policy&#8217;s contractual liability exclusion.<\/span><\/p>\n<h2 dir=\"ltr\">What a typical US enterprise insurance clause contains<\/h2>\n<p dir=\"ltr\"><span style=\"font-weight: 400;\">A typical clause lists the lines of cover with a limit for each, followed by conditions on how the cover works. The lines decide how much money stands behind the vendor. The conditions decide whether the customer can reach it.<\/span><\/p>\n<ul dir=\"ltr\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Commercial general liability (<\/b><a href=\"https:\/\/lamdabroking.com\/en\/cgl-insurance\/\"><b>CGL insurance<\/b><\/a><b>):<\/b><span style=\"font-weight: 400;\"> responds mainly to bodily injury and property damage suffered by third parties. A software failure that causes the customer a financial loss without physical damage usually falls outside it.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Technology errors and omissions (<\/b><a href=\"https:\/\/lamdabroking.com\/en\/technology-professional-liability\/\"><b>Tech E&amp;O<\/b><\/a><b>):<\/b><span style=\"font-weight: 400;\"> responds to a customer&#8217;s claim for financial loss caused by an error in, or failure of, the service. It is usually written on a claims-made basis and limited by a contractual liability exclusion.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Cyber (network security and privacy):<\/b><span style=\"font-weight: 400;\"> responds to data breaches and security events, including notification and forensic costs. A performance failure that did not stem from a security event usually stays with Tech E&amp;O.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Umbrella or excess:<\/b><span style=\"font-weight: 400;\"> adds limit above the primary policies. Many clauses allow the required limit to be met by combining primary and excess layers.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Workers&#8217; compensation and employer&#8217;s liability:<\/b><span style=\"font-weight: 400;\"> relevant when the vendor has employees in the US. Auto liability often appears only because the template was written for every kind of vendor, and it can usually be struck.<\/span><\/li>\n<\/ul>\n<p dir=\"ltr\"><span style=\"font-weight: 400;\">In insurance requirements that US public bodies publish for SaaS vendors, general liability is usually set at $1 million per occurrence and $2 million in the aggregate. Tech E&amp;O and cyber range from $1 million to $5 million or more, depending on the sensitivity of the data and how dependent the customer is on the service. Large private customers sometimes ask for more, so treat these figures as a starting point only.<\/span><\/p>\n<p dir=\"ltr\"><strong>The common conditions, in practical terms:<\/strong><\/p>\n<table dir=\"ltr\">\n<tbody>\n<tr>\n<td><b>Common contract requirement<\/b><\/td>\n<td><b>What it means in practice<\/b><\/td>\n<td><b>How to word it or what to ask for<\/b><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Additional insured<\/span><\/td>\n<td><span style=\"font-weight: 400;\">The customer becomes an insured and is defended when sued because of the vendor&#8217;s operations. Readily available on CGL.<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Limit it to CGL and excess, through a blanket endorsement. For Tech E&amp;O and cyber, offer a contractual indemnity instead.<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Waiver of subrogation<\/span><\/td>\n<td><span style=\"font-weight: 400;\">The vendor&#8217;s insurer gives up in advance its right to sue the customer after paying a claim.<\/span><\/td>\n<td><span style=\"font-weight: 400;\">A blanket endorsement, after checking which policies allow it.<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Primary and non-contributory<\/span><\/td>\n<td><span style=\"font-weight: 400;\">The vendor&#8217;s policy pays first, without calling on the customer&#8217;s own insurance.<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Limit it to claims arising from the vendor&#8217;s operations.<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Notice of cancellation<\/span><\/td>\n<td><span style=\"font-weight: 400;\">The customer wants advance warning that cover is ending.<\/span><\/td>\n<td><span style=\"font-weight: 400;\">The vendor itself undertakes to give notice within a set number of days.<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Minimum insurer rating<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Usually A- VII on the A.M. Best scale.<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Add &#8220;or an equivalent rating from a recognised rating agency&#8221;.<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Admitted insurer<\/span><\/td>\n<td><span style=\"font-weight: 400;\">The insurer holds a licence from the insurance regulator in the customer&#8217;s state.<\/span><\/td>\n<td><span style=\"font-weight: 400;\">&#8220;Authorised or eligible to write insurance in the jurisdiction where the policy is issued, on an admitted or surplus lines basis&#8221;.<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Cover after termination<\/span><\/td>\n<td><span style=\"font-weight: 400;\">A claims-made policy must still respond to a claim made after the contract ends.<\/span><\/td>\n<td><span style=\"font-weight: 400;\">A fixed retroactive date and a defined post-termination period, or an extended reporting period.<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Subcontractors (flow-down)<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Every subcontractor carries the same insurance at the same limits.<\/span><\/td>\n<td><span style=\"font-weight: 400;\">&#8220;Insurance reasonably appropriate to the services the subcontractor provides&#8221;, with cloud infrastructure providers carved out.<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2 dir=\"ltr\">Additional insured and waiver of subrogation: where they work<\/h2>\n<p dir=\"ltr\"><span style=\"font-weight: 400;\">These requirements, and primary wording too, were born in general liability, and that is where they work well. With Tech E&amp;O and cyber the picture changes, because the customer is usually the likely claimant.<\/span><\/p>\n<p dir=\"ltr\"><span style=\"font-weight: 400;\">Those policies commonly exclude claims brought by one insured against another. A customer added as an additional insured may find that it has blocked its own claim against the vendor under that policy, so the endorsement it asked for works against it. Some customers know this and ask for additional insured status only for their vicarious liability, with an amendment that preserves their right to sue the vendor. Some insurers will agree by endorsement, subject to the policy wording. Where the insurer declines, the usual answer is a contractual indemnity that the policy may fund.<\/span><\/p>\n<p dir=\"ltr\"><span style=\"font-weight: 400;\">A waiver of subrogation and primary wording also require endorsements. The certificate has boxes for both, but ticking a box only records what the policy already says.<\/span><\/p>\n<h2 dir=\"ltr\">The certificate of insurance: what it proves and what stays in the policy<\/h2>\n<p dir=\"ltr\"><span style=\"font-weight: 400;\">A US certificate of insurance is an information document, and it says so. The form states that it is issued as a matter of information only and that it neither confers rights on the holder nor amends the cover.<\/span><\/p>\n<p dir=\"ltr\"><span style=\"font-weight: 400;\">This matters most for notice of cancellation. Older editions of the form said the insurer would &#8220;endeavor&#8221; to mail notice, with no liability for failing to do so. The 2009 revision replaced that sentence with a statement that notice will be delivered in accordance with the policy provisions. In 2010 the New York insurance regulator confirmed that the certificate is a commercial document rather than a contract, and that an agent may not add terms that expand the policy. A demand for &#8220;30 days&#8217; notice from the insurer&#8221; is therefore met only if the insurer has agreed to it by endorsement. The practical offer is for the vendor itself to commit to give notice.<\/span><\/p>\n<p dir=\"ltr\"><span style=\"font-weight: 400;\">Israeli contracts use a different instrument, a uniform certificate whose wording is fixed by the regulator.<\/span><\/p>\n<h2 dir=\"ltr\">Admitted insurers and Lloyd&#8217;s: how to word the insurer requirement<\/h2>\n<p dir=\"ltr\"><span style=\"font-weight: 400;\">A requirement that the insurer be admitted in the customer&#8217;s state is common in US templates written without a foreign vendor in mind. It can almost always be redrafted without changing the insurance.<\/span><\/p>\n<p dir=\"ltr\"><span style=\"font-weight: 400;\">An admitted insurer holds a licence from the state insurance regulator. A non-admitted insurer works through the surplus lines route, which exists for specialist risks, and its policyholders generally have no access to the state guaranty fund. That is the customer&#8217;s logic: a safety net if the insurer fails.<\/span><\/p>\n<p dir=\"ltr\"><span style=\"font-weight: 400;\">From 2020 Lloyd&#8217;s gradually gave up the few admitted licences it held in the US, and it writes direct business there on a surplus lines basis. Its syndicates appear on the NAIC quarterly listing of alien insurers and are eligible to write in every state. Each syndicate has its own identification number on that list, and some customers will ask for it. Lloyd&#8217;s is rated as a single market, and that rating applies to every syndicate at a level above the bar most contracts set. That is usually enough to approve a departure from the template. A policy an Israeli company buys from Lloyd&#8217;s through a <\/span><a href=\"https:\/\/lamdabroking.com\/en\/about-lamda-an-insurance-broker\/lloyds-open-market-correspondence\/\"><span style=\"font-weight: 400;\">Lloyd&#8217;s correspondent or coverholder<\/span><\/a><span style=\"font-weight: 400;\"> is issued in Israel, and how far a US admitted-insurer requirement reaches such a policy at all is an open question worth raising with the customer&#8217;s counsel.<\/span><\/p>\n<p dir=\"ltr\"><span style=\"font-weight: 400;\">Wording that is accepted in most cases: &#8220;insurers rated A- VII or better, or holding an equivalent rating, including Lloyd&#8217;s syndicates, authorised or eligible to write insurance in the jurisdiction where the policy is issued&#8221;. The same fix helps an Israeli insurer that may hold only a local-scale rating.<\/span><\/p>\n<h2 dir=\"ltr\">Claims-made cover: what happens after the contract ends<\/h2>\n<p dir=\"ltr\"><span style=\"font-weight: 400;\">Tech E&amp;O and cyber are almost always written on a claims-made basis, so the policy in force when the claim is made is the one that responds. That is why customers ask for cover to continue after the relationship ends.<\/span><\/p>\n<p dir=\"ltr\"><span style=\"font-weight: 400;\">A common requirement is to keep cover for two or three years after termination or acceptance of the services, or to buy an extended reporting period. A retroactive date that precedes the start of the services, and survives any change of insurer, usually comes with it. <\/span><a href=\"https:\/\/lamdabroking.com\/en\/claims-run-off-what-it-means-and-why-it-matters\/\"><span style=\"font-weight: 400;\">Claims run-off cover<\/span><\/a><span style=\"font-weight: 400;\"> is the tool for the case where the company is sold or stops trading.<\/span><\/p>\n<h2 dir=\"ltr\">Super-caps and indemnities: where insurance meets the contract<\/h2>\n<p dir=\"ltr\"><span style=\"font-weight: 400;\">The insurance clause has to be read together with the limitation of liability and the indemnities. A policy limit below the cap leaves an uninsured obligation, and an indemnity the policy excludes stays with the company whatever the limit.<\/span><\/p>\n<p dir=\"ltr\"><span style=\"font-weight: 400;\">In a typical MSA general liability is often capped at the fees paid over the previous twelve months, with a higher super-cap for data breach and IP indemnity. It is worth checking that the cyber and Tech E&amp;O limits at least match the super-cap. A clause capping liability at &#8220;the amount actually paid by insurance&#8221; looks protective, but it invites a dispute over the cap if the insurer declines the claim.<\/span><\/p>\n<p dir=\"ltr\"><span style=\"font-weight: 400;\">The deeper issue is the contractual liability exclusion. Many Tech E&amp;O and cyber policies exclude liability assumed under contract, except liability the insured would have had anyway. Under CGL, contractual cover is limited to an &#8220;insured contract&#8221;, meaning tort liability of another party for bodily injury or property damage that the vendor has assumed. A broad indemnity for &#8220;any breach of the data processing agreement&#8221; may fall between the two, and the gap usually surfaces only when a claim is made. It is worth showing the indemnity clause to someone who knows the policy wording before signature. The <\/span><a href=\"https:\/\/lamdabroking.com\/en\/tech-eo-cyber-do-crime-coverage-map\/\"><span style=\"font-weight: 400;\">coverage map for Tech E&amp;O, cyber, D&amp;O and crime<\/span><\/a><span style=\"font-weight: 400;\"> shows where each line stops.<\/span><\/p>\n<h2 dir=\"ltr\">AI clauses in 2025 and 2026 contracts<\/h2>\n<p dir=\"ltr\"><span style=\"font-weight: 400;\">US customers are adding AI addenda to their contracts, governing the use of models and responsibility for their outputs. Some addenda also require that the vendor&#8217;s Tech E&amp;O policy carry no AI exclusion.<\/span><\/p>\n<p dir=\"ltr\"><span style=\"font-weight: 400;\">The market is moving the other way. Optional generative AI exclusions were added to the standard US general liability forms for 2026, and several insurers have introduced AI exclusions or sub-limits in other lines too. A vendor that represents its policy covers AI risk without checking the wording may breach that representation on the day it signs. Safer wording commits to cover &#8220;as available in the market on commercially reasonable terms&#8221;.<\/span><\/p>\n<h2 dir=\"ltr\">The Israeli side: jurisdiction and certificates<\/h2>\n<p dir=\"ltr\"><span style=\"font-weight: 400;\">An Israeli policy can meet a US customer&#8217;s requirements if it was built for that purpose. The first check is territory and jurisdiction.<\/span><\/p>\n<p dir=\"ltr\"><span style=\"font-weight: 400;\">Some policies sold in Israel exclude suits brought in the US and Canada, or cover them only by endorsement. A Tech E&amp;O policy for a SaaS company selling to US customers needs worldwide territory and jurisdiction, including the US. Israeli employer&#8217;s liability does not replace workers&#8217; compensation for staff employed in the US, which most states make compulsory.<\/span><\/p>\n<p dir=\"ltr\"><span style=\"font-weight: 400;\">Israeli customers ask for a uniform certificate of insurance whose wording was set by the Capital Market, Insurance and Savings Authority in a 2019 circular, in an updated version in force since February 2023. The form is locked against amendment and built on a closed list of codes, including code 339 for cyber risks. The same concepts appear in US contracts, but there is no mandatory form, so every customer drafts its own.<\/span><\/p>\n<p dir=\"ltr\"><span style=\"font-weight: 400;\">On these deals the broker (LAMDA Broking) and the company&#8217;s counsel review the draft MSA against the policy wordings before signature and flag every requirement the policies do not meet. The full programme is described on the <\/span><a href=\"https:\/\/lamdabroking.com\/en\/insurance-for-saas-companies\/\"><span style=\"font-weight: 400;\">insurance for SaaS companies<\/span><\/a><span style=\"font-weight: 400;\"> page, and cyber cover for software vendors on the <\/span><a href=\"https:\/\/lamdabroking.com\/en\/cyber-insurance-for-technology-companies\/\"><span style=\"font-weight: 400;\">cyber insurance for technology companies<\/span><\/a><span style=\"font-weight: 400;\"> page.<\/span><\/p>\n<h2 dir=\"ltr\">Europe and Asia: what is different<\/h2>\n<p dir=\"ltr\"><span style=\"font-weight: 400;\">With European customers, insurance requirements often sit in the data processing agreement rather than in a separate insurance clause. In Asia, requirements vary widely from country to country.<\/span><\/p>\n<p dir=\"ltr\"><span style=\"font-weight: 400;\">Article 28 GDPR binds the processor to security commitments, and Article 82 makes it liable for damage where it breached obligations directed at processors, so proof of cyber cover is often requested. Whether a regulatory fine is insurable gets different answers in different member states.<\/span><\/p>\n<p dir=\"ltr\"><span style=\"font-weight: 400;\">In Japan and Singapore, enterprise customers mostly ask for a certificate and limits. In India and China, insurance for a local risk generally has to come from a local insurer, which matters mainly to a vendor that has set up a subsidiary there.<\/span><\/p>\n<h2 dir=\"ltr\">Common mistakes<\/h2>\n<p dir=\"ltr\"><span style=\"font-weight: 400;\">The most common mistake is signing the clause as drafted and looking at it only when the customer asks for a certificate. Two wrong assumptions follow close behind: that a high limit closes every gap, and that a ticked box on a certificate proves cover. These are the phrases that recur in drafts:<\/span><\/p>\n<table dir=\"ltr\">\n<tbody>\n<tr>\n<td><b>Red flag in the draft<\/b><\/td>\n<td><b>Why<\/b><\/td>\n<td><b>Suggested fix<\/b><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">&#8220;Customer shall be named as additional insured on all policies&#8221;<\/span><\/td>\n<td><span style=\"font-weight: 400;\">On cyber and Tech E&amp;O the endorsement is often unavailable and may block the customer&#8217;s own claim.<\/span><\/td>\n<td><span style=\"font-weight: 400;\">CGL and excess only, with a contractual indemnity for the rest.<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">&#8220;Insurer shall give 30 days&#8217; notice of cancellation&#8221;<\/span><\/td>\n<td><span style=\"font-weight: 400;\">The certificate refers to the policy provisions, and the insurer owes no duty to a third party.<\/span><\/td>\n<td><span style=\"font-weight: 400;\">The vendor undertakes to give notice itself.<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">&#8220;Insurers licensed in the customer&#8217;s state only&#8221;<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Lloyd&#8217;s and foreign insurers fail this wording.<\/span><\/td>\n<td><span style=\"font-weight: 400;\">&#8220;Authorised or eligible, on an admitted or surplus lines basis&#8221;.<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">A minimum rating on one scale, with no alternative<\/span><\/td>\n<td><span style=\"font-weight: 400;\">A sound insurer rated on another scale is excluded.<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Add &#8220;or an equivalent rating&#8221;.<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">&#8220;The policies shall cover all indemnity obligations under this Agreement&#8221;<\/span><\/td>\n<td><span style=\"font-weight: 400;\">The contractual liability exclusion may apply.<\/span><\/td>\n<td><span style=\"font-weight: 400;\">&#8220;Insurance appropriate to the vendor&#8217;s legal liability, subject to policy terms&#8221;.<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">&#8220;The policy shall contain no AI exclusion&#8221;<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Many wordings already carry an exclusion or sub-limit.<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Cover as available in the market on commercially reasonable terms.<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">&#8220;All subcontractors shall carry identical insurance&#8221;<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Large cloud providers will not sign up to this.<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Reasonable insurance for the service, with infrastructure providers carved out.<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2 dir=\"ltr\">Frequently Asked Questions<\/h2>\n<h3 dir=\"ltr\">Our US customer sent a two-page insurance clause. Where do we start?<\/h3>\n<p dir=\"ltr\"><span style=\"font-weight: 400;\">Compare each requirement with your current policy wordings, including how long cover must run after termination. Mark every gap, then decide whether to ask the insurer for an endorsement or the customer for different wording. Do this while the draft is still open, before vendor onboarding begins.<\/span><\/p>\n<h3 dir=\"ltr\">Does a Lloyd&#8217;s policy satisfy an admitted-insurer requirement?<\/h3>\n<p dir=\"ltr\"><span style=\"font-weight: 400;\">Read literally, usually not, because Lloyd&#8217;s writes direct US business on a surplus lines basis. Many customers accept wording that recognises eligible insurers with a suitable rating, and Lloyd&#8217;s syndicates are listed as eligible in every state. For an Israeli company there is also the question of where the policy was issued, which is worth settling with counsel.<\/span><\/p>\n<h3 dir=\"ltr\">The customer wants to be an additional insured on our cyber policy. What do we say?<\/h3>\n<p dir=\"ltr\"><span style=\"font-weight: 400;\">Explain that on cyber and Tech E&amp;O that status may stop the customer suing you, because of the insured-versus-insured exclusion. The alternatives are a contractual indemnity, or an endorsement covering only the customer&#8217;s vicarious liability that preserves its right to claim, subject to the insurer&#8217;s agreement.<\/span><\/p>\n<h3 dir=\"ltr\">How does a US certificate of insurance differ from the Israeli certificate?<\/h3>\n<p dir=\"ltr\"><span style=\"font-weight: 400;\">The Israeli certificate is a uniform, mandatory form, locked against amendment and built on closed codes. The US certificate is an information form that states it confers no rights on the holder. In both cases what decides cover is the policy wording and its endorsements.<\/span><\/p>\n<h3 dir=\"ltr\">The contract requires cover for three years after termination. How do we comply?<\/h3>\n<p dir=\"ltr\"><span style=\"font-weight: 400;\">Keep the claims-made policy in force for that period with the same retroactive date. If the company is sold or stops trading, buy an extended reporting period or run-off cover. It helps to word the obligation as &#8220;maintain cover or purchase an extended reporting period&#8221;.<\/span><\/p>\n<h3 dir=\"ltr\">We work only from Israel and have no US employees. Do we need workers&#8217; compensation?<\/h3>\n<p dir=\"ltr\"><span style=\"font-weight: 400;\">Usually the requirement applies only to people employed in the US. You can ask the customer to delete it or add &#8220;to the extent required by law&#8221;. If you hire even one employee in a US state, check that state&#8217;s requirements before the person starts work.<\/span><\/p>\n<p dir=\"ltr\"><b>Every requirement in an insurance clause is a contractual commitment measured against the policy wording, and the cheapest time to reconcile the two is before signature.<\/b><\/p>\n<p dir=\"ltr\"><i><span style=\"font-weight: 400;\">The above is general information only and does not constitute insurance, legal or other professional advice. Terms of cover, exclusions and obligations are set by the specific policy wording and subject to applicable law. Each case should be reviewed on its own facts against the policy wording and with a qualified adviser.<\/span><\/i><\/p>\n","protected":false},"excerpt":{"rendered":"<p>A US enterprise customer sent an MSA with an insurance clause? What to check before signing: additional insured, Lloyd&#8217;s vs admitted, claims-made, caps.<\/p>\n","protected":false},"author":9,"featured_media":20513,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[96],"tags":[],"class_list":["post-20511","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-technology-insurance"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.6 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>SaaS Contract Insurance Requirements: US Customers<\/title>\n<meta name=\"description\" content=\"A US enterprise customer sent an MSA with an insurance clause? 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