Covered Claims is a variable that appears in the Partnership Agreement Cover Page, in the Key Terms section. This section is for your agreements' key legal terms.
Covered Claims is an optional variable.
How to fill this out
Also known as indemnity, a Covered Claim in the contract is a promise by one company to pay for certain kinds of losses experienced by the other company that result from a lawsuit by someone else. What situations should you or your customer be responsible for paying for?
Default:
You (the Company) will pay for your partner’s losses caused by:
Your gross negligence or willful misconduct, or
Your breach of the representations and warranties in the agreement
Your Partner will pay for your losses caused by:
Your Partner’s gross negligence or willful misconduct, or
Your Partner’s breach of the representations and warranties in the agreement
Tip: Covered Claims are about monetary responsibility, not necessarily legal fault, similar to how an insurance company might pay for an accident even if it isn’t their fault. Covered Claims are not required, but they are common in these types of contracts.