jeffrey m. tonks ycparmia risk transfer seminar ycparmia training 2006 learn more about us at:

Jeffrey M.

Tonks YCPARMIA

RISK TRANSFER SEMINARRISK TRANSFER SEMINAR

YCPARMIA TRAINING

2006Learn more about us at: www.ycparmia.com

Jeffrey M.

Tonks YCPARMIA

The object of risk transfer

is to shift potential risks

to another party.

PURPOSEPURPOSE

RISK = Uncertainty Of Loss

Risk Management Theory

CONTRACTINSURANCE

CLAIM MANAGEMENT

AVOID CONTROL

RISK

FINANCE

PREVENTION RETAIN TRANSFER

Factors Affecting Contractual Risk Transfer

Control of Risk

Knowledge of Risk

Legal Limitations on Risk Transfer

Custom and Practice

Bargaining Position Size Competitive Marketplace Reputation of the Parties

Key Contract Provisions

Indemnity Clauses

Liability Limitation and Exculpatory Provisions

Waivers of Subrogation

Insurance Requirements Assure the financial viability

Provide a coordinated insurance program

Fund a recovery of third party damages

Support the indemnity provisions of the contract

Strategies for Transferring Riskto Others

Observe Legal Limitations

Back up Indemnity Provisions with Insurance Requirements

Reasonable Flexible Update Requirements Additional Insured Status

Shared Limits Completed Operations Coverage “Other Insurance”

Strategies for Transferring Riskto Others

Verify Compliance with Insurance Requirements

Certificates of Insurance

Errors

Notice of Cancellation – “endeavor”

Jeffrey M.

Tonks YCPARMIA

INDEMNITY AGREEMENTSINDEMNITY AGREEMENTS

Indemnity Agreement

Hold Harmless and Indemnification are the same thing

The indemnitor assumes the liability of the indemnitee

Completely independent of insurance coverage

The Agreement does not relieve the indemnitee of

liability to the injured party

Classified based on the scope of obligation

Indemnity Types4 = What is the “scope of the obligation?”

1. Broad Form - transfers the entire risk = All

claims arising from or in “connection with”

“Should do so expressly and unequivocally so that the

contracting party is advised in definite terms of

liability to which it is exposed.”

Cal. Civil Code 2782 prohibits transferring

indemnitee’s sole negligence in construction or design

contracts

Indemnity Types

2. Intermediate Form Assumes all liabilities except those caused by indemnitee’s

sole negligence

3. Limited Form (or Comparative Fault) Obligates indemnitor only to extent of its own fault

4. Hybrid Form Broad form for some risks and comparative for other risks

Sample Agreement #1

“Contractor shall indemnify, defend, and hold harmless entity

and its officers, officials, employees and volunteers from and

against any and all liability, loss, damage, expense, costs

(including without limitation costs and fees of litigation) of

every nature arising out of or in connection with contractor’s

performance of work hereunder or its failure to comply with

any of its obligations contained in the agreement, except such

loss or damage which was caused by the sole negligence or

willful misconduct of the entity.”

Sample Agreement #1

1. Take out the indemnity statement: “Contractor shall indemnify, defend and hold harmless”

“Contractor shall indemnify, defend, and hold harmless entity and its officers, officials, employees and volunteers from and against any and all liability, loss, damage, expense, costs (including without limitation costs and fees of litigation) of every nature arising out of or in connection with contractor’s performance of work hereunder or its failure to comply with any of its obligations contained in the agreement, except such loss or damage which was caused by the sole negligence or willful misconduct of the entity.”

Sample Agreement #1

2. Take out the who: “entity and its officers, officials, employees and volunteers”


Sample Agreement #1

3. Take out the from what: “from and against any and all liability, loss, damage, expense, costs (including without limitation costs and fees of litigation) of every nature”


Sample Agreement #1

4. Take out the from limitations: “except such loss or damage which was caused by the sole negligence or willful misconduct of the entity”


Sample Agreement #1

What is left is the scope: “arising out of or in connection with contractor’s performance of work hereunder or its failure to comply with any of its obligations contained in the agreement”


Sample Agreement #2

“ To the fullest extent permitted by law, the Contractor shall indemnify and hold harmless the Owner and the Architect and their agents and employees from and against all claims, damages, losses and expenses, including but not limited to attorneys’ fees, arising out of or resulting from the performance of the Work, provided that any such claim, damage, loss or expense (i) is attributable to bodily injury, sickness, disease or death, or to injury to or destruction of tangible property (other than the Work itself) including loss of use resulting there from and (ii) is caused in whole or in part by any negligent act or omission of the Contractor, any subcontractor, anyone directly or indirectly employed by any of them or anyone for whose acts any of them may be liable, regardless of whether or not it is caused in part by a party indemnified hereunder…”

Sample Agreement #2

1. Take out the indemnity statement: “To the fullest extent permitted by law, the Contractor shall indemnify and hold harmless

“To the fullest extent permitted by law, the Contractor shall indemnify and hold harmless the Owner and the Architect and their agents and employees from and against all claims, damages, losses and expenses, including but not limited to attorneys’ fees, arising out of or resulting from the performance of the Work, provided that any such claim, damage, loss or expense (i) is attributable to bodily injury, sickness, disease or death, or to injury to or destruction of tangible property (other than the Work itself) including loss of use resulting there from and (ii) is caused in whole or in part by any negligent act or omission of the Contractor, any subcontractor, anyone directly or indirectly employed by any of them or anyone for whose acts any of them may be liable, regardless of whether or not it is caused in part by a party indemnified hereunder…”

Sample Agreement #2

2. Take out the who: “the Owner, and the Architect and their agents and employees”


Sample Agreement #2

3. Take out the from what: “from and against all claims, damages, losses and expenses, including but not limited to attorneys’ fees,”


Sample Agreement #2

4. Take out the limitations: “provided that any such claim, damage, loss or expense (i) is attributable to bodily injury… (ii) is caused in whole or in part by any negligent act or omission of the Contractor… regardless of whether or not it is caused in part by a party indemnified hereunder…”

“employees from and against all claims, damages, losses and expenses, including but not limited to attorneys’ fees, arising out of or resulting from the performance of the Work, provided that any such claim, damage, loss or expense (i) is attributable to bodily injury, sickness, disease or death, or to injury to or destruction of tangible property (other than the Work itself) including loss of use resulting there from and (ii) is caused in whole or in part by any negligent act or omission of the Contractor, any subcontractor, anyone directly or indirectly employed by any of them or anyone for whose acts any of them may be liable, regardless of whether or not it is caused in part by a party indemnified hereunder…”

Sample Agreement #2

What is left is the scope: “arising out of or resulting from the performance of the Work”

“employees from and against all claims, damages, losses and expenses, including but not limited to attorneys’ fees, arising out of or resulting from the performance of the Work, provided that any such claim, damage, loss or expense (i) is attributable to bodily injury, sickness, disease or death, or to injury to or destruction of tangible property (other than the Work itself) including loss of use resulting there from and (ii) is caused in whole or in part by any negligent act or omission of the Contractor, any subcontractor, anyone directly or indirectly employed by any of them or anyone for whose acts any of them may be liable, regardless of whether or not it is caused in part by a party indemnified hereunder…”

Indemnity Issues

Does the injury or damage fall within the subject matter of

the hold harmless clause? Arising from or arising under

Arising out of the project

Arising out of, incident to, or in connection with the agreement or

the performance of the work or services hereunder…

Arising out of or resulting from the performance by …

Broad interpretation with a “but for” test

Narrow interpretation of “clear and unequivocal” (CA)

Indemnity Issues

Indemnity Clauses Scope

Subject Matter

DURATION When a contract terminates the clauses within also terminate

Absent clear and unequivocal language

Contrast Additional Insured Status under the insurance policy

Jeffrey M.

Tonks YCPARMIA

Waivers Of SubrogationWaivers Of Subrogation

Waivers of Subrogation

Doctrine of Subrogation allows a party

who has paid a loss or debt

on the part of another, to succeed to the rights

of that other party to pursue recovery

from a third party, who was responsible for causing the loss.

Waivers of SubrogationInsurance

Insurance payments; LC 3852 re: Workers’ Comp Helps reduce insurance costs/premiums Can be reduced by comparative against employer

Limited to the rights of the insured – Waiving the right to recover Allocation of recoveries- who gets paid first? Insured cannot prejudice the subrogation rights of the insurer

Post-loss vs. pre-loss waivers WC double recover with waiver of subrogation Subrogation is not waived; the derivative right is Most policies allow a pre-loss waiver; but examine the policy

Endorsing a waiver of recovery may cause additional premium Generally an insurer cannot subrogate against its insured, nor its additional

insured

Jeffrey M.

Tonks YCPARMIA

Contractual Liability CoverageContractual Liability Coverage

INSURANCE:

THE MONEY BEHIND THE PROMISE

Contractual Liability Coverage

ISO forms and edition dates

Manuscript and non-ISO forms

Contractual Liability Coverage (Standard Forms)

Commercial General Liability Policy (CGL) Automatically provides insureds with “broad form blanket

contractual liability coverage” Insuring Agreement – We will pay those sums that the insured

becomes legally obligated to pay as damages because of “bodily injury” or “property damage” to which the insurance applies. We will have the right and duty to defend the insured against any “suit” seeking those damages. However, we will have no duty to defend the insured against any “suit” seeking damages for “bodily injury” or “property damage to which this insurance does not apply. We may at our discretion investigate any “occurrence” and settle any claim or “suit” that may result.


Contract Exclusion – This insurance does not apply to… “Bodily Injury” or “property damage” for which the insured is obligated to pay damages by reason of the assumption of liability in a contract or agreement. This exclusion does not apply to liability for damages: (1) that the insured would have in the absence of the contract or agreement; or (2) assumed in a contract or agreement that is an “insured contract”, provided the “bodily injury” or “property damage” occurs subsequent to the execution of the contract or agreement.


Insured Contract Definition – “Insured Contract” means:

a) A contract for a lease of premises…

b) A sidetrack agreement

c) Any easement or license agreement…

d) An obligation, as required by ordinance, to indemnify a municipality, except in connection with work for a municipality

e) An elevator maintenance agreement


f) That part of any other contract or agreement pertaining to your business (including an indemnification of a municipality in connection with work performed for a municipality) under which you assume the tort liability of another party to pay for “BI” or “PD” to a third person or organization. Tort liability means a liability that would be imposed by law in the absence of any contract or agreement.

Does not include that part of any contract or agreement: That indemnifies a railroad…arising out of construction…within 50

feet of any roadbed… That indemnifies an architect, engineer or surveyor arising out of…

preparing plans, maps… Under which the insured, if an architect, engineer, or surveyor…


Business Auto Policy (BAP)

For our purposes: coverage comparable to the CGL

An insured contract includes a car rental agreement, but

excludes paying for damage to the rented vehicle

Does not cover a vehicle leased “with a driver”


Umbrella and Excess Policies

Language varies among insurers

Coverage for contracts has traditionally been very broad


Professional Liability Policies CGL policies generally exclude professional services

Language varies among insurers and types of professionals

Coverage for assumption of another’s professional liability is

usually limited to the same kind for which the insured is

covered

Contract exclusion might limit coverage to acts of the insured

CGL is needed for non-professional indemnity agreements


Pollution Liability Insurance (CPL) CGL usually excludes coverage

Written on a scheduled project basis

Has contract exclusion subject to exceptions for

“covered contracts” Indemnity agreement between the named insured contractor and

the client is a “covered contract”

Some require a schedule of indemnity agreements


Jeffrey M.

Tonks YCPARMIA

ADDITIONAL INSUREDADDITIONAL INSURED

Require the indemnitor to obtain coverage against the loss on behalf of the indemnitee

Or arrange for its own insurance coverage to be modified to cover the indemnitee

Declaration Page Named insureds

More stringent occurrence reporting requirements Employees, executive officers and directors are insured Certain exclusions only apply to the named insured Must pay the deductible Must pay the premium May cancel the policy Only the “first” named insured receives the cancellation notice

Other persons who qualify as insureds based on their relationship with the named insured

Other entities may be added as insureds by means of endorsement

Additional Insured

Problems with the Hold Harmless

Chevron USA v Bragg Crane (Cal App) – while there is a limit to the amount of risk

that can be transferred under an indemnity contract, there is no such limit on obtaining

insurance

Note: scope of coverage will not always match up with indemnity agreement-

Additional insured status is not an alternative

Direct right of defense

Subrogation- generally an insurer cannot subrogate against its insured

Protection maybe limited so consider a waiver of subrogation

Personal injury coverage is added only if indemnitee is an insured

Obtaining coverage not otherwise available (ex. Malpractice)

Unenforceable indemnity agreement

Reasons To RequireAdditional Insured Status

Interplay between the indemnitee’s CGL and the Indemnitor’s CGL (additional insured)

Standard pre-1997 CGL coverage is primary but contributory

Current CGL: excess over any other primary insurance for which you have been added as an additional insured by “attachment of endorsement”

“Primary and non-contributory” endorsement Breach of contract on primary issue

Umbrella policies are not standard forms

“Other Insurance” - CGL

Losses that arise after the work has been completed

and accepted

Pre-1993 additional insured endorsements included

completed operations coverage- arising out of “your

work”

Post-1993 additional insured endorsements limit

coverage to “liability arising out of your ongoing

operations”

Completed Operations

CG 20 10 – Owners, Lessees or Contractors Most widely used “Arising out of”

CG 20 09 – Owners, Lessees or Contractors Attached to policies that do not provide contractual liability coverage Covers vicarious liability and general supervision

CG 20 11 – Managers or Lessors of Premises Coverage ends when no longer a tenant Only that part of the premises leased to you

CG 20 12 – State or Political Subdivisions—Permits CG 20 33 – Owners, Lessees or Contractors—Automatic Status When

Required in Construction Agreement Does not have to be issued naming the specific party Limited to the time during which operations are actually being performed

CG 20 07 – Engineers, Architects or Surveyors: excludes professional liability

Endorsements

Umbrella policy will usually follow underlying policy

No endorsement, but handled in the policy

Cancellation Notice

Policy only requires notice to the “first named insured”

California Insurance Code section 677.2(b) “…named insured

at the mailing address shown on the policy…”

Endorsements

Vicarious Auto Liability extended in the “who is an

insured” section by covering anyone liable for the conduct

of an insured

CA 20 48 – Designated Insured Endorsement- restates

“who is an insured”

Additional InsuredAuto Liability

Requires an insurable interest in the insured property

Loss payee

No standard additional insured form

The main advantage would be to cut off subrogation liens

Builder’s Risk—shifting interests and no subrogation

Additional InsuredCommercial Property

Generally cannot be named as an additional insured

Organization may be responsible if contractor fails to purchase

Require the contractor to have coverage

Subrogation Require the contractor to name you on the CGL Hold-harmless clause

A waiver of subrogation (does not protect against an employee action)

Additional InsuredWorkers’ Compensation

Injured employee collects on workers comp from

employer, then

Sues a third party contributing to the injury;

The third party tenders back to the employer under an

indemnity contract/additional insured provision

Additional InsuredThird-Party-Over Action

AN ALTERNATIVE TO ADDITIONAL INSURED Owners and Contractors Protective Liability Insurance (OCP)

Contractor purchases insurance directly on behalf of the project owner

“Arising out” of operations and general supervision are covered Narrow coverage ends with project-no completed operations CGL type exclusions Contractor who purchases policy is not insured by it Coverage is primary Subrogation against the purchasing contractor is allowed absent a

waiver Costs more than additional insured status

Protective Liability Insurance

Construction Project Management Protective

Liability Similar to the OCP, but adds the architect, engineer or

surveyor along with the construction manager

Professional services exclusion

Automatic waiver of subrogation

Protective Liability Insurance

Jeffrey M.

Tonks YCPARMIA

INSURANCE FORMSINSURANCE FORMS

Insurance Services Office (ISO) Dominant position with nearly 3000 insurance company

customers

Insurers can develop their own forms/manuscript forms

Use of these standardized forms has the advantages of

prior legal interpretations, similarity for statistical data,

and price comparison

Insurance Forms

Form numbering and addition dates

Example: CG 20 10 03 97

CG: commercial general liability form

20: indicates the category (additional insured) of

endorsement

10: the unique number assigned to this endorsement

03 97: indicates the March 1997 edition of CG 20 10

Insurance Forms

Commercial General Liability (CG 00 01) = CGL Covers BI, PD, Personal and advertising injury

Insured premises and operations in progress, products and

completed operations, contractual assumption of liability

Occurrence or claims made (rare)

Per occurrence limits and aggregate limits

Per-project and per location general aggregate endorsements

Exclusions – WC, Auto, EPL, Pollution, E&O

Types Of Insurance

Business Auto Coverage Form (CA 00 01) Covers BI, PD and Physical Damage for “any auto” Subject to an “each accident” single limit- no aggregate Coverage for “insured contract” Severability of interests clause Exclusions

Types Of Insurance

Workers’ Compensation (W 00 00 01) Covers statutory benefits, employer liability, other

states coverage

Policy limits are subject to sublimits for employer

liability

“Additional insured” status is generally not available

Types Of Insurance

Commercial Property (CP 00 01) Physical damage to buildings and contents

Named perils or all risk coverage

ACV or replacement coverage

Coinsurance clause

Types Of Insurance

Environmental Impairment Liability – no set forms Pollution Legal Liability

Covers liability for the release of pollutants from specified locations and includes clean up costs

Claims-made form Contractors Pollution Legal Liability

Specialized version of PLL for contractors Specific project or blanket Claims made

Environmental Professional Liability E&O Coverage for professionals

Types Of Insurance

Professional Liability E&O

Malpractice

Failure to use due care and the degree of skill

expected of a person in the same profession

Occurrence but usually claims made

Types Of Insurance

Jeffrey M.

Tonks YCPARMIA

INSURANCE REQUIREMENTSINSURANCE REQUIREMENTS

Insurance operates independently of the indemnity agreement

Do not reference insurance in the indemnity agreement

Reflect agencies risk philosophy concerning the degree of protection

Be sensitive to the insurance market

Modifications to standard policies or modifications to existing insurance program causes problems, additional cost (that is buried and passed on) and delays

Insurance Requirements

Evidence of Insurance – should be required Certificate

Certificate with amendments and attachments

Copy of the policy Reserve the right if dispute later arises

Include punitive measure if not provided

General Provisions

Notice of Cancellation – needed to encourage replacement coverage Standard certificates do not require notice to

holders Insurer will “endeavor to” provide 30 days advance

notice Insurers might modify time A requirement of notice is refused by most insurers

General Provisions

Deductibles and Retentions – less is best Require the amount be declared and subject to prior approval

Judge how much your contractor can afford

Allocate responsibility for paying to the insurance purchaser

Consistent with the indemnity agreement

Self-Insurance – is it insurance?

Need to evaluate a self-insurance program to determine if it will

meet its obligations

“Other Insurance” is not self-insurance in California

General Provisions

A.M. Best

A VII or better

Insurance Company Ratings

• A++ and A+ Superior• A and A- Excellent• B++ and B+ Very Good• B and B- Fair• C++ and C+ Marginal• C and C- Weak• D Poor• E Under regulatory supervision• F In liquidation• S Rating suspended• NR 1-5 Not rated due to insufficient

info or request

Insurance Company Ratings

Financial Size – Reserves in millions of dollars XV greater than 2000 XIV 1500 to 2000 XIII 1250 to 1500 XII 1000 to 1250 XI 750 to 1000 X 500 to 750 IX 250 to 500 VIII 100 to 250 VII 50 to 100

Insurance Company RatingsVII or Better

Limits of Liability Set agency guidelines for minimum levels/not exact

amounts Each contract can be reviewed looking at the

following factors: Prevailing practices in the industry The size of the business providing the service The current insurance market place The type of service being provided The risk

Limits Of Liability

Example: Shropshire v. Walnut Creek decided 5/5/03 City pool rented for last 15 years to Diablo Divers and the WC

Aquanuts with no division between the two activities Indemnity

agreement in favor of the city backed by each with a $5M policy

15 yr old swimmer pushed off from wall and was hit by a diver

off of the 3 meter board – quadriplegic

Divers and Aquanuts settled prior to trial for $4m leaving $6M

for the city

Jury verdict $27,750,000 with 60% to the city for a dangerous

condition: net exposure to the city $20,759,925.

Limits Of Liability

Jeffrey M.

Tonks YCPARMIA

It keeps going and going…It keeps going and going…

INSURANCE CERTIFICATESINSURANCE CERTIFICATES

Certificate holder vs. Additional Insured

Standard certificate is the ACORD form

Insurance Certificates

Standard Certificate

Manuscript certificate

Certificate holders right to notice of cancellation

“Endeavor to” and “but failure to do so…”

Conflicts between the certificate and actual coverage

Disclaimer: “This certificate is issued as a matter of

information only and confers no rights upon the certificate

holder. This certificate does not amend, extend or alter the

coverage afforded by the policies below.”



Underlying contract insurance requirements Disclaimer: “The policies of insurance listed

below have been issued…notwithstanding any requirement, term or condition of any contract…”

Certificate Tracking Verify the required coverages are in force Monitor ongoing compliance

Jeffrey M.

Tonks YCPARMIA

YOLO COUNTY CONTRACTSYOLO COUNTY CONTRACTS

Yolo ContractsPurchase Order

Purchase Order Condition #16: The vendor agrees to defend, indemnify, and hold

harmless the County of Yolo, its officers, employees, agents and

servants, for any and all liability caused by the negligence or

wrongful act of the vendor arising out of the performance of this

agreement, or any act of omission of vendor, its agents, employees

and servants, or for product liability or breach or warranty by

vendor, either expressed or implied, and to pay all claims, damages,

judgments, legal costs, adjuster fees and attorney fees related

thereto.

Yolo ContractsShort-Form Agreement

Short-Form Agreement Term #5: CONTRACTOR, at his sole cost and expense, shall obtain and

maintain throughout the entire term of this contract, the insurance set forth

in Exhibit A attached hereto.

Term #6: CONTRACTOR shall defend, indemnify, and hold harmless the

COUNTY, its officers, officials, employees and agents from any and all

claims, demands, liability, damages, cost or expenses (including but not

limited to attorney fees) in law or equity that may at any time arise or be

asserted based in whole or in part upon any negligent or other wrongful act

or omission of the CONTRACTOR, it’s officers, agents, or employees.


EXHIBIT AINSURANCE REQUIREMENTS

A. During the term of this Agreement, Contractor shall at all times maintain, at its expense, comprehensive general liability insurance, Workers’ Compensation and Employers’ Liability insurance as required by the State of California, professional liability/malpractice/errors and omissions insurance and automobile liability insurance (including coverage for hired and non-owned vehicles). The comprehensive general liability insurance shall include broad form property damage insurance.[NOTES: 1. These provisions are illustrative only. In many cases, professional liability insurance (malpractice insurance) isn’t necessary, while other situations may suggest different types of insurance. Many situations also do not require $1M/$2M levels of insurance. 2. Risk Management issues (including the types & amounts of recommended insurance & significant indemnification issues) should be evaluated early in the process of evaluating the desirability of a particular contract, in consultation with the County’s Risk Manager & YCPARMIA as appropriate; this will enable you to provide & discuss the necessary information with venders early in the negotiation process.] The limits of such insurance shall be no less than $1,000,000 per individual/ $2,000,000 per occurrence for the comprehensive general liability insurance, statutory limits for the Workers’ Compensation /$ 1,000,000 for Employers’ Liability insurance per accident for bodily injury or disease, $2,000,000 per occurrence for the professional liability/malpractice/errors and omissions insurance, and $1,000,000 general and $500,000 property per occurrence for the automobile liability insurance. [note: these limits need to be reviewed based upon the scope of services, nature of the contractor, etc.; please review with Risk Management] 2. Said policies shall remain in force through the life of this Agreement and shall be payable on a “per occurrence” basis unless the County Risk Manager specifically consents in writing to a “claims made” basis. If the County Risk Manager does consent to “claims made” coverage, in the event that the Contractor changes insurance carriers Contractor shall purchase “tail” coverage covering the term of this Agreement and not less than three years thereafter. Proof of such “tail” coverage shall be required at any time that the Contractor changes to a new carrier prior to receipt of any payments due. 3. The County, its officers, agents, employees and volunteers shall be named as additional insured on all but the workers’ compensation and professional liability coverages. 4. The Contractor shall declare all aggregate limits on the coverage before commencing performance of this Agreement, and the County’s Risk Manager reserves the right to require higher aggregate limits to ensure that the coverage


limits required for this Agreement as set forth above are available throughout the performance of this Agreement. 5. Any deductibles or self-insured retentions must be declared to and are subject to the approval of the County Risk Manager. 6. Each insurance policy shall be endorsed to state that coverage shall not be suspended, voided, canceled by either party, reduced in coverage or in limits except after thirty (30) days’ prior written notice by certified mail, return receipt requested, has been given to the Director (ten (10) days for delinquent insurance premium payments). 7. Insurance is to be placed with insurers with a current A.M. Best’s rating of no less than A:VII, unless otherwise approved by the County Risk Manager. 8. The policies shall cover all activities of Contractor, its officers, employees, agents and volunteers arising out of or in connection with this Agreement. o)~ For any claims relating to this Agreement, the Contractor’s insurance coverage shall be primary, including as respects the County, its officers, agents, employees and volunteers. Any insurance maintained by the County shall apply in excess of, and not contribute with, insurance provided by Contractor’s liability insurance policy. 10. The insurer shall waive all rights of subrogation against the County, its officers. employees, agents and volunteers. B. Prior to commencing services pursuant to this Agreement, Contractor shall furnish the Director with original endorsements reflecting coverage required by this Agreement. The endorsements are to be signed by a person authorized by that insurer to bind coverage on its behalf All endorsements are to be received by, and are subject to the approval of, the County Risk Manager before work commences. Upon County’s request, Contractor shall provide complete, certified copies of all required insurance policies, including endorsements reflecting the coverage required by these specifications. C. During the term of this Agreement, Contractor shall furnish the Director with original endorsements reflecting renewals, changes in insurance companies and any other documents reflecting the maintenance of the required coverage throughout the entire term of this Agreement. The endorsements are to be signed by a person authorized by that insurer to bind coverage on its behalf Upon County’s request, Contractor shall provide complete, certified copies of all required insurance policies, including endorsements effecting the coverage required by these specifications.

Yolo Contracts“Long-Form” Contract

Jeffrey M.

Tonks YCPARMIA

Q & AQ & A

jeffrey m. tonks ycparmia risk transfer seminar ycparmia training 2006 learn more about us at:

Documents

insurance slide

uncertainty of loss

harmless entity

entity contractor

limitation costs

sample agreement

risk management theory

scope of obligation