A Practice Note discussing some of the key basic issues related to insurance covenants in supply chain agreements such as sale of goods agreements, distribution agreements, services agreements, transportation agreements, and warehouse agreements. Insurance covenants are used in commercial contracts together with indemnification and other risk allocation provisions to allocate risk by obligating one or both parties to carry and maintain liability and other types of insurance for the benefit of the other party. Key issues include the types of insurance required, quality (credit rating) of the insurer, policy limits, notice of cancelation or non-renewal, primary and non-contributory status, additional insured status, evidence of insurance coverage through certificates of insurance and endorsements, waiver of subrogation, and excess and umbrella coverage.