Protecting the State from Contracting Risks
Risk Management Department is pleased to announce the latest edition of Risk Management’s web based insurance manual, “Insurance Requirements for Contracts”. This Manual was developed in partnership with our Attorney General’s office and State Purchasing Division to assist our agencies with developing insurance specifications for their Request for Proposals and State contracts.
The manual is broken down into sections which address specific exposures related to various types of agreements. The sections include insurance schedules which are designed to be used Attachment BB to the revised “Contract for Services of Independent Contractor” form (See page 8). As long as the scope of work contemplated in the agreement is similar to the scenarios described within the manual, the agencies are required to use at least the minimum insurance limits listed. If there are specific questions about the indemnification language, please contact the Attorney General’s office for more information.
We do recognize that some of the currently effective contracts may not meet the specifications as listed within this latest manual edition. It is not necessary to revise those contracts that are currently in force; rather the new requirements should be introduced upon contract renewal. Additionally, we also recognize that some agreements may pose specialized risks that require further review. In those cases, agencies are still encouraged to contact the Risk Management department for additional information. Any agreements which include performance bonding should be reviewed by Risk Management.
Risk Management will be offering revised training in conjunction with State Purchasing as part of their "CERTIFICATION FOR STATE CONTRACT MANAGERS” course. Look for those classes on the NEATS system in the near future.
Risk Management will be offering revised training in conjunction with State Purchasing as part of their “CERTIFICATION FOR STATE CONTRACT MANAGERS” course. Look for those classes on the NEATS system in the near future
- Evidence of the required insurance in the form of Insurance Certificate(s) and Endorsements are required to be submitted to the contracting agency prior to the start of the work of the contract.
- Agency contract personnel are responsible for compliance with the insurance requirements. Insurance documentation should remain permanent part of the agency’s contract file.
In the event an agency becomes aware of a claim against the State resulting from the work of their Contractor, the agency should contact the Attorney General’s Office immediately.