Describe the loss
Use a severe but plausible scenario tied to the actual work.
Decision framework
Move from agreement language to a clear position.
Each step keeps exposure, insurance, evidence and authority separate.
Quantify exposure
Estimate people, property, data, dependency, duration and affected third parties.
Test the policy path
Confirm the coverage category, occurrence or claims made basis, sublimits and aggregation.
Compare insurance availability
Understand current limits, shared aggregates, excess structure, cost and availability.
Set positions
Document preferred and practical positions, identify choices requiring business approval and record who may approve them.
Decision matrix
Use the fact pattern, not the clause label.
These are routing positions. Actual policy, legal and statutory outcomes still require the appropriate qualified person.
| Signal | Why it matters | Working response |
|---|---|---|
| Contract value | Useful commercial context. | Do not use as the only proxy for severity involving other parties. |
| Maximum probable loss | Connects requirement to a scenario. | State assumptions and uncertainty; do not present it as a guarantee. |
| Annual aggregation | Shows portfolio pressure. | Consider shared systems, repeat events and aggregate erosion. |
| Available insurance | Tests feasibility. | Confirm through broker/insurer rather than assuming policy availability. |
Applied example
Fictional scenario: critical SaaS with a modest fee
Situation: A supplier earns $120,000 annually but supports a critical customer workflow and processes sensitive data. The template asks for $20 million each of Cyber and errors and omissions (E&O).
InsureClause path: The review does not accept or reject the limits based on fees alone. It maps outage, data and professional error scenarios, considers aggregation and available insurance, then prepares preferred, practical and exception positions.
Boundary: The result gives the business a negotiation rationale and next step without certifying any limit as universally sufficient.
Review checklist
What a usable position should contain
- A severe but plausible loss is described.
- Each limit is connected to a relevant coverage path.
- Limits for each occurrence, aggregate limits and sublimits are distinguished.
- Shared and correlated exposure is considered.
- Current insurance and cost are confirmed before commitment.
- Preferred, practical and exception positions identify who may approve them.
Editorial method
Practical, based on sources and clear about uncertainty.
This guide combines common commercial insurance practice with information from public authorities and regulators. The sources support the framework, but they do not create one legal or coverage answer for every situation.
The product value
Bring the same structure into a complete contract review.
Use public, fictional or otherwise permitted nonconfidential material.