Caution

Brand Insurance Absent

Creator must carry coverage; brand has no matching obligation; counterparty- credit risk sits with Creator.

Show it
Look in the insurance or coverage section for phrases like "Brand is not required to maintain insurance", "Brand makes no representation as to insurance", "Brand maintains insurance as it deems necessary", or contract silence on brand-side coverage paired with detailed Creator-side insurance requirements.
Decode it
Insurance reciprocity is where counterparty- credit risk sits. Where you carry mandatory coverage but the brand does not, your recovery path for brand-caused losses depends on brand solvency and litigation success. The asymmetry compounds when paired with creator- insurance- required.
Fix it
Push for: explicit mutual insurance obligations at equivalent limits; Brand coverage naming Creator as additional insured; documentation of existing brand insurance arrangements where new obligation is declined; or counterparty- credit provision (parent guarantee, escrow) where Brand is smaller and uninsured.

What it means

This contract requires you to carry insurance but does not require the brand to carry matching coverage for risks that might affect you. The brand decides its own insurance arrangements privately; you bear your premium cost and have no insurer- backed recovery path for brand-caused losses.

Insurance reciprocity is where counterparty- credit risk sits. Both sides face risks the other might create (operational errors, misrepresentation, IP infringement, defamation). Where the creator carries mandatory coverage but the brand does not, the creator's recovery path for brand-caused losses depends on brand solvency and litigation success.

What to check before you sign

  • ·Does the contract require any brand-side insurance?
  • ·Is the brand named as additional insured on your policy without you being named on theirs?
  • ·Is the brand large and publicly-reported, or smaller and counterparty-credit-uncertain?
  • ·What exposure do you have to brand operational errors (on-location, product handling, brand materials)?
  • ·Are insurance obligations reciprocal elsewhere in the contract?

How to fix it

  • moderate

    Add equivalent brand- side insurance obligation at limits commensurate with Creator's own, covering risks affecting Creator.

  • moderate

    Name Creator as additional insured on the brand's general liability, professional indemnity, and media liability policies reciprocally.

  • easy

    Brand provides evidence of existing insurance arrangements (certificate of insurance, policy summary) even where contractual obligation is declined.

  • harder

    Where brand is smaller or uninsured, add a counterparty- credit provision (parent guarantee, escrow, or prepayment structure) to address recovery risk.

Negotiating it

A good opening

"Could we add reciprocal insurance obligations at equivalent limits, with Creator named as additional insured on the Brand's general liability and professional indemnity policies? "

When to walk away

Brand insurance absent combined with creator- insurance- required at disproportionate limits, broad creator indemnity, uncapped liability, and small or uncertain- counterparty brand, creates a structure where the creator carries insurance cost, insurance exposure (via additional- insured status), and counterparty- credit risk without matching protection. Strong walk- away signal for high- value engagements or smaller- brand counterparties.

Find this clause in your own contract.

Scan your brand deal free - 2 contract scans, no card required.

Scan your contract free →

Related clauses

Educational guidance, not legal advice. For high-value or complex deals, consult a qualified solicitor.