Home > Glossary

Contractual Liability Insurance Policy Clip

Contractual Liability Insurance Policy (CLIP)

Definition

An important financial instrument necessary to several industries. CLIPs are most commonly associated with service contracts but can be used in a variety of areas. A CLIP is a commercial insurance product that covers the contractual obligations of the insured (always a commercial entity). A full reimbursement CLIP would indemnify the insured commercial entity for all monies it expends to fulfill a contractual commitment. The insured's need to procure a CLIP can be driven by a regulatory requirement or simple economics.

Related Products

User ID: Subscriber Status:Free