Reciprocal coverage agreement template.
A reciprocal arrangement (you cover their vacation, they cover yours) is the simplest path to time off for solo business owners. Here's a template you can adapt — and notes on what to negotiate.
A reciprocal arrangement (you cover their vacation, they cover yours) is the simplest path to time off for solo business owners. Here's a template you can adapt — and notes on what to negotiate.
A simple reciprocal coverage agreement specifies: (1) which services each party covers for the other, (2) compensation structure (typically each party keeps fees from work they do, OR a referral fee structure), (3) duration of coverage (typically 1-2 weeks per year per party), (4) confidentiality and conflict-checking, (5) insurance and licensing verification. Adapt the template to your industry's specifics and have an attorney review.
Below is a simplified template. Have an attorney review before signing — especially in regulated industries (legal, medical, financial).
[Provider A Name], doing business as [Provider A Business], and [Provider B Name], doing business as [Provider B Business], hereby enter into this Reciprocal Coverage Agreement effective [date].
Each party agrees to provide coverage for the other during planned absences (vacation, illness, family emergency) for the following services: [list services]. Coverage does not include: [list excluded services].
Each party shall provide minimum [7] days written notice for planned absences, and reasonable notice for emergencies. Coverage periods shall not exceed [14] consecutive days per occurrence and [28] cumulative days per calendar year.
Each party shall bill clients directly for services rendered during coverage periods, retaining all fees. No referral or coverage fees shall be exchanged between the parties.
(Alternative: 'Covering Provider shall remit [10%] of net fees to Absent Provider as a coverage fee.')
Each party agrees to maintain client confidentiality consistent with industry standards. Conflict checks shall be conducted before coverage of any specific matter. Either party may decline coverage of a specific matter for conflict reasons.
Each party represents they maintain current professional licensure and professional liability insurance covering the services to be rendered. Each party shall provide proof of insurance to the other annually.
This Agreement shall remain in effect until terminated by either party upon [30] days written notice. Termination does not affect ongoing coverage already in progress.
Set the partner as your covering vendor; calls dispatch to them. 14 days free.
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