In ever-growing numbers, contracts contain language impacting the relationship between a contracting party and an insurance carrier. Contracts may include a variety of new insurance based terms that require:

• Coverage against a certain kind of loss
• Policy limits at or above specified levels
• That a party be added as an additional insured under another party’s policy

Proof that these requirements have been satisfied may be an essential condition of the contract, without which it has no binding effects at all.

Ensuring adherence to these insurance requirements presents a challenge that absolutely must be met. Where an insurance requirement is not satisfied, the organization can be exposed to liability for something it had believed to be a covered risk. Where an event such as a mass tort, environmental contamination or injury occurs, the attendant loss can be significant and even catastrophic.Risk rises exponentially without visibility into the contracts.For organizations handling a large number of contracts, the only means to ensure that insurance requirements are satisfied (and to avoid the significant loss) is systemic contract management deployed on an enterprise-wide scale.

So, how is this risk managed across the enterprise? By tools featuring obligation monitoring and linkage with related documents. These features are critical in managing the contract lifecycle.Obligations Tracking enables 360-degree visibility into every contract requirement across the organization. Automatic reminders will email staff months before obligations are due. Linkage among two or more contracts promotes awareness of change in not only one, but all connected bargain terms. This connection ensures that you can sync your committed obligations with the insurance requirements. Prodagio Contracts contains what is necessary to the overcome the challenges that face corporate legal groups.

If you in the are in the Austin area, check out the Contracts Seminar. We will be touching on these topics.