Last updated: January 2025.
Yes, in most cases. When a US enterprise client sends you a Master Services Agreement (MSA), it almost always names specific insurance requirements you must carry before you sign, commonly $1M general liability, $1M professional liability (E&O), and $1M cyber liability, plus a certificate of insurance (COI) naming them as additional insured. The exact limits live in the "Insurance" section of the MSA, and you cannot start work until your COI matches those numbers.
TL;DR
- Most enterprise MSAs carry an insurance clause with named minimum limits; the most common floor is $1M per occurrence general liability.
- The workflow below carries one real MSA clause through 6 steps to a delivered COI, using free scanners plus your broker.
- Most enterprise buyers want you listed as additional insured and demand a 30-day notice of cancellation endorsement, which not every policy includes.
- Don't buy the highest limits by default. Match the MSA number exactly; buying $2M when the contract asks for $1M brings no contractual benefit.
Methodology: This guide reviews the insurance language in publicly available enterprise MSA templates and standard vendor-agreement libraries, cross-referenced against U.S. state and federal insurance authorities. Coverage names and limits reflect language common in 2024–2025 enterprise contracts; verify your own MSA, since limits and endorsements vary by client and jurisdiction.
Definition — MSA insurance requirement: A clause in a Master Services Agreement that legally obligates the vendor (you) to purchase and maintain named insurance coverages at stated dollar limits for the life of the contract, and to prove it with a certificate of insurance before work begins. It is a condition of the deal, not a suggestion.
Where does the client actually say they require insurance?
In the "Insurance" or "Indemnification" section of the MSA, usually in the back half of the document. Enterprise legal teams standardize this language, so it reads the same across most Fortune 1000 vendor contracts. For a public reference point, review the sample services-agreement insurance language published by the U.S. General Services Administration (GSA acquisition clauses, accessed January 2025) and the coverage definitions maintained by the National Association of Insurance Commissioners (NAIC glossary, accessed January 2025).
Look for a paragraph that starts "Vendor shall procure and maintain, at its own expense..." followed by a list of coverage types and dollar figures. That list is your shopping order. If you skim past it, you find out at COI-request time, which is usually the week you were supposed to start billing.
The most common insurance requirements in an MSA break down like this:
| Coverage named in MSA | Typical required limit (2025) | What triggers the requirement |
|---|---|---|
| General Liability | $1M per occurrence / $2M aggregate | Working on-site, physical presence, bodily injury/property risk |
| Professional Liability (E&O) | $1M per claim | You deliver advice, code, design, consulting |
| Cyber Liability | $1M per claim | You touch, store, or transmit the client's data |
| Workers' Compensation | Statutory limit set by your state | You have employees; the required amount is set by state law, not the MSA |
| Additional Insured endorsement | N/A | Client wants to be covered under your policy |
| Waiver of Subrogation | N/A | Client blocks your insurer from suing them |
Note on Workers' Compensation: Unlike the liability lines above, workers' comp limits are not something the MSA gets to set. Each state defines its own statutory requirements and whether coverage is mandatory once you employ one or more workers. Check your state's requirements before signing — for example, through the U.S. Department of Labor's state workers' compensation directory (DOL OWCP state contacts, accessed January 2025). If you are a solo vendor with no employees, an MSA may still require a waiver or a statement of exemption, so confirm the exact wording with your broker.
A note on price: The price of any limit is set by the insurer for your business; ask a licensed broker for a written quote.