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Service Contract Liability (Insurance) Template for Saudi Arabia

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Key Requirements PROMPT example:

Service Contract Liability (Insurance)

"I need a Service Contract Liability Insurance agreement for my IT consulting company based in Riyadh, with coverage starting March 1, 2025, that includes cyber liability protection and covers operations across the GCC region, while ensuring full Sharia compliance."

Document background
The Service Contract Liability (Insurance) agreement is essential for businesses providing services in Saudi Arabia who need to protect themselves against potential liabilities arising from their service contracts. This document is specifically designed to comply with Saudi Arabian law, SAMA regulations, and Sharia principles, making it suitable for use in the Kingdom. It provides comprehensive coverage for various service-related risks, including professional errors, omissions, and contractual breaches. The agreement is structured as a Takaful (Islamic insurance) product, ensuring alignment with Islamic financial principles while meeting modern business needs. It includes detailed coverage terms, claims procedures, and risk management requirements, making it particularly valuable for service providers who need to demonstrate adequate insurance coverage to their clients or fulfill regulatory requirements.
Suggested Sections

1. Parties: Identification of the insurer, insured party (service provider), and any additional named insureds

2. Background: Context of the insurance agreement and relationship between parties

3. Definitions: Detailed definitions of terms used throughout the policy, including technical and Sharia-compliant insurance terminology

4. Scope of Coverage: Detailed description of what service contract liabilities are covered under the policy

5. Policy Period: Duration of coverage, including start and end dates, and renewal terms

6. Premium and Payment Terms: Premium amount, payment schedule, and consequences of non-payment

7. Limits of Liability: Maximum coverage amounts and sub-limits for different types of claims

8. Exclusions: Specific circumstances, activities, or losses not covered by the policy

9. Claims Procedures: Process for filing and handling claims, including documentation requirements

10. Obligations of the Insured: Duties and responsibilities of the service provider under the policy

11. Cancellation and Termination: Conditions and procedures for policy cancellation by either party

12. Dispute Resolution: Procedures for resolving disputes, including Sharia-compliant arbitration provisions

13. Governing Law: Specification of Saudi law and Sharia principles as governing law

14. Notices: Methods and addresses for official communications between parties

Optional Sections

1. Additional Insured Endorsement: Section defining additional parties covered under the policy, used when client requires coverage

2. Cross-Border Services Coverage: Special provisions for services provided outside Saudi Arabia, included when international operations exist

3. Cyber Liability Extension: Coverage for digital service-related risks, included for technology-based services

4. Professional Services Extension: Additional coverage for professional advice or services, used for professional service providers

5. Retroactive Coverage: Coverage for claims arising from services provided before policy inception, used for existing service providers

6. Takaful Pool Participation: Terms for participation in Islamic insurance pool, used when policy is structured as Takaful

7. Sanctions Clause: Compliance with international sanctions, included when dealing with international services

Suggested Schedules

1. Schedule A - Service Description: Detailed description of covered services and associated risks

2. Schedule B - Premium Calculation: Breakdown of premium calculation and payment schedule

3. Schedule C - Claims Documentation Requirements: List of required documents and procedures for claims

4. Schedule D - Risk Management Requirements: Mandatory safety and risk management procedures

5. Schedule E - Coverage Territory: Geographical scope of coverage and any territorial limitations

6. Appendix 1 - Certificate of Sharia Compliance: Certification from Sharia board regarding policy compliance

7. Appendix 2 - SAMA Compliance Declaration: Declaration of compliance with SAMA regulations

8. Appendix 3 - Claims Forms: Standard forms for submitting claims under the policy

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions




















































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Relevant Industries

Professional Services

Information Technology

Construction Services

Facilities Management

Healthcare Services

Engineering Services

Consulting Services

Maintenance Services

Transportation Services

Educational Services

Financial Services

Security Services

Cleaning Services

Telecommunications

Energy Services

Relevant Teams

Legal

Risk Management

Compliance

Operations

Finance

Procurement

Business Development

Client Services

Quality Assurance

Claims Processing

Corporate Governance

Relevant Roles

Risk Manager

Compliance Officer

Legal Counsel

Insurance Manager

Operations Director

Contract Manager

Chief Financial Officer

Chief Operating Officer

Project Manager

Service Delivery Manager

Quality Assurance Manager

Procurement Manager

Business Development Manager

Claims Manager

Corporate Secretary

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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