The contractor may or may not have insurance covering errors, errors or accidental damage suffered by a subcontractor that the subcontractor may cause. If the contractor has insurance, this must be mentioned here. If the contractor does not do so, the insurance clause must clarify the customer`s insurance obligations. In this area too, the requirement of proof of coverage by the presentation of a certificate of insurance must be respected. A coverage requirement under the subcontractor`s basic liability policy covers both subcontractors and contractors in the event of specific damages. Among the types of insurance and coverage available to include in the outsourcing form are things like Commercial General Liability Coverage and Errors and Omission Insurance. This section of the contract ensures that the contractor does not violate local laws relating to competition with the contractor. . . .