Why do we need to work with SMA regarding insurance if our client is licensed with an institution (university, college, etc.)?
As the exclusive licensing representative for these collegiate properties, SMA grants a license to manufacturers to produce and distribute merchandise incorporating the trademarks of SMA Institutions upon approval by that Institution. Each company requesting a license must obtain the proper product liability insurance coverage and, if a license is granted, maintain that coverage during the term of the License Agreement. All SMA Licensees are required to obtain a minimum of $1 million in general insurance, including product liability and other coverage. Insurance is required to help protect the licensee, the institutions, and SMA in the case of any claims of damages or defects related to the collegiate licensed merchandise as well as other liability claims. All licensees, regardless of products or potential risk, are required to obtain this insurance, and some licensees with higher risk products will be required to obtain additional coverage beyond the $1 million level (SMA will notify
