Common use of Liquidated Damages for Late Notice Under Business Associate Agreement Clause in Contracts

Liquidated Damages for Late Notice Under Business Associate Agreement. ‌ If Insurer fails to provide timely notice to individuals as provided in Sections 4.5 and 4.6 of the Business Associate Agreement, then FHKC shall be entitled to liquidated damages equal to one thousand dollars ($1,000) per day for the first thirty (30) Calendar Days; thereafter, liquidated damages will equal one thousand dollars ($1,000) per day plus fifty thousand dollars ($50,000) for each thirty (30) Calendar Day period (prorated if less than thirty (30) Calendar Days) from the date Insurer was required to provide notice to individuals. These liquidated damages shall cover FHKC’s internal staffing and administrative costs as well as the diminished value of services provided under this Contract. Such costs and damages are not readily ascertainable. These liquidated damages and corresponding invoice credits shall not exceed five hundred thousand dollars ($500,000) per event. FHKC may choose to offset these liquidated damages owed by Insurer from any payments owed to Insurer or may choose to require Insurer pay the liquidated damages by electronic fund transfer or check.