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Supplier Agreement Audits to Align Coverage and Reduce Risk

Supplier Agreement Audits to Align Coverage and Reduce Risk
Product liability
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By Pejman Javaheri Product Liability July 26, 2024

In our previous article, we discussed the importance of liability insurance policy assessments. The final part of this series focuses on another crucial aspect: supplier agreement audits. Ensuring that your supplier agreements align with your coverage is vital for minimizing risk.

The Role of Supplier Agreements

Supplier agreements outline the terms and conditions under which you purchase goods and services from your suppliers. These agreements often include provisions related to liability and insurance coverage, which can significantly impact your business’s risk exposure.

Key Areas of Focus in Supplier Agreement Audits

  1. Coverage Requirements: Supplier agreements may specify the amount and type of insurance coverage you need to carry. Ensure that your liability insurance meets or exceeds these requirements to avoid contractual breaches and additional risks.
  2. Indemnity Clauses: Review indemnity clauses to understand the extent of your liability in case of issues arising from supplier-provided products or services. Ensure that these clauses are fair and protect your interests.
  3. Compliance with Regulations: Ensure that your supplier agreements comply with all relevant regulations and industry standards. Non-compliance can lead to significant legal and financial consequences.

Benefits of Supplier Agreement Audits

  • Risk Mitigation: Regular audits help identify and address potential gaps in coverage, reducing the risk of financial losses due to non-compliance or insufficient insurance.
  • Strengthened Supplier Relationships: Clear and fair agreements foster stronger relationships with your suppliers, enhancing collaboration and reliability.
  • Enhanced Legal Protection: Well-drafted and regularly audited supplier agreements provide robust legal protection, safeguarding your business from potential liabilities.

Supplier agreement audits are a vital component of a comprehensive risk management strategy. By ensuring that your agreements align with your insurance coverage and comply with regulations, you can significantly reduce your business’s exposure to food product liabilities. This concludes our series on how food product liability lawyers can protect your business. For more information or to consult with our legal experts, contact Juris Law Group for a free consultation.

Pejman Javaheri / About Author
Pejman Javaheri, Esq., is the founder of Juris Law Group, P.C., a firm established in 2009 that specializes in Food IP Licensing and related areas of food and beverage law. With a commitment to integrating legal excellence into business strategies, Javaheri leads a firm renowned for its expertise in areas such as Food & Beverage Law, Licensing & Brand Protection, Outside General Counsel, Consumer Products & Manufacturing, Corporate & Business Law, Family Office, and Business Affairs. Pejman Javaheri brings a unique and comprehensive approach to legal services, particularly in the realm of licensing agreements. Under his leadership, the firm has excelled in areas such as Food & Beverage Law, where his team supports a range of clients from agribusinesses to retailers. In Licensing & Brand Protection, Javaheri has led the firm to become a leader in the food and beverage space, expertly handling negotiations, terms sheets, and drafting industry-standard license agreements.

Pejman Javaheri also specializes in Outside General Counsel, providing strategic planning and comprehensive legal advice; Consumer Products & Manufacturing, focusing on compliance and risk management; Corporate & Business Law, offering a streamlined boutique approach; Family Office, delivering personalized counsel; and Business Affairs, where Javaheri's team combines legal acumen with business insight.

His academic foundation in Political Science and Psychology from the University of California, Irvine, combined with a Juris Doctor from UC Hastings College of the Law, set the stage for a career marked by innovation and comprehensive legal solutions.

At Winston & Strawn, LLP, Javaheri refined his skills in corporate, real estate, and finance law. He is celebrated for his role as a strategic business planner and legal expert, earning the title Chief 'Get Sh!t Done' Officer™ for his dynamic, results-oriented approach. His leadership in community involvement is highlighted by his prestigious role on the Los Angeles Trial Lawyers’ Charities (LATLC) Honorary Board of Directors.

Embodying ethics, commitment, professionalism, confidentiality, and creativity, Javaheri's approach is defined by integrity, a client-focused urgency, and a constant drive for innovation. At Juris Law Group, he not only provides legal solutions but also nurtures the growth and success of his clients' businesses and ventures, adapting to their evolving needs.

Food IP licensing offers a unique opportunity for brand expansion and consumer engagement. Juris Law Group’s experience in facilitating diverse licensing agreements, coupled with the growing trend of major brands entering this space, underscores the potential of this sector. If you are considering leveraging your IP in the food and beverage industry, our team at Juris Law Group is equipped to guide you through this journey. Contact our expert food and beverage licensing lawyers today.
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