RISK MANAGEMENT

9/22/2020

RISK MANAGEMENT

Reviewing Contracts

Insurance Requirements and Proof of Coverage

This document is meant to serve as a quick- reference guide to insurance in an effort to assist you while

writing, updating, and reviewing contracts. It is not intended to be, and is not, all-inclusive; it is subject to

change; and is not being provided as a means to circumvent the contract review process. A glossary of

terms and examples of supporting documents are included at the end of this document.

If you have questions and about the type and coverage amounts needed for a specific contract, please

contact Risk Management.

Why do we require contractors to carry insurance?

In short, to protect the County from lawsuits from third parties stemming from personal injury or

property damage caused by the actions of our contractors, lease holders, or their employees.

What types of insurance does the County require?

The County requires most contractors and lease holders to carry General Liability Insurance.

Most service contracts will also require Auto Liability Insurance, and some will also require Professional

Liability Insurance. There may be times where Professional and/or Auto Liability coverage is not needed

at all, depending on the type of services being provided. For example, Auto Liability coverage may not be

needed if the Contractor is not driving on County property or transporting clients. Professional Liability

would not be needed unless the Contractor is providing services that would require advanced training or

certifications, such as medical providers, architects, engineers, and accountants. Auto Liability coverage

will be required if a Contractor is receiving travel/mileage reimbursement as part of the terms of the

contract.

Workers’ Compensation insurance is required of all employers, but some contractors may be

exempt from carrying coverage. In those situations, the contractor must certify that they are exempt

from the Workers’ Compensation coverage requirements by completing and signing a Workers’

Compensation Exemption Certificate, included in the contract as a separate exhibit. If a contractor is not

exempt from Workers’ Compensation coverage, the County must obtain proof of workers’ compensation

coverage and also requires a waiver of subrogation endorsement. It is imperative that proof of

coverage or exemption prior to allowing work to begin under the contract; failure to do so could

mean that the County would be held responsible for the contractor’s workers’ compensation

claims and will have to pay the cost of these claims.

What insurance limits are required?

At a minimum, most contractors will be required to carry and maintain the following insurance limits

and accompanying endorsements:

• $1M per Occurrence and $2M Annual Aggregate limits for Commercial General Liability with an

Additional Insured endorsement listing the County, its officers, employees, volunteers, and

agents as Additional Insureds (and in some cases the State of Oregon)

• $1M per Occurrence and $2M Annual Aggregate limits for Professional Liability, if applicable

• $1M Commercial Automobile Liability, if applicable, with an Additional Insured endorsement

listing the County, its officers, employees, volunteers, and agents as Additional Insureds

• $1M or Statutory limits for Workers’ Compensation, if applicable, with a waiver of subrogation

endorsement

There may be times the insurance limits may be adjusted. For example, if a contractor is providing state-

funded services for Health Services, the insurance limit requirements are $3M per Occurrence/$5M

Aggregate for General Liability. This is in line with the liability limits set by the Oregon Tort Claims Act

and the State of Oregon is also listed as an additional insured.

Higher limits for General Liability Insurance may be considered for higher risk contracts involving road

and construction work. In contrast, we may agree to accept lower policy limits for Workers’

Compensation or Auto Liability depending on the type of services being provided. For example, if a

Contractor is providing consultative services only and travel reimbursement is included in the contract

we may accept an Auto Liability policy of $500k instead of $1M.

How does the Contractor prove they have the insurance coverage a contract requires?

Contractors must provide a current Certificate of Insurance (COI) with the signed contract. The COI is a

simple form issued by the contractor’s insurance broker/agent that lists the types of coverage, the

issuing insurance company, policy number, name of the insured, the policy’s effective dates, the types

and dollar amounts of limits and deductibles, and any endorsements included in the policy, such as the

additional insured endorsement and/or waiver of subrogation. The COI is not a legally binding

document, so copies of any required endorsements should also be provided by the contractor. The

contractor is also required to notify the County in writing at least 30 days in advance of any cancellation,

termination, material change, or reduction of limits of the insurance coverage. Contractors, usually

through their insurance company, also need to provide updated COI’s when a new policy period begins.

The County can also request complete copies of a contractor’s insurance policies.

9/22/2020

RISK MANAGEMENT

Glossary

• Aggregate– a limit in an insurance policy stipulating the most it will pay for all covered losses

sustained during a specified period of time, usually a year.

• Automobile Liability Insurance – needed if a contractor will be driving as part of performing the

services in the contract, especially when providing any sort of transportation to clients under the

contract.

• Certificate of Insurance – a document that provides proof of insurance coverage and condenses

crucial information about the policy on one page

• Endorsement – also known as a rider; adds, deletes, excludes, or changes insurance coverage. It

can be used to increase standard limits of coverage and take precedent over the original

agreement/policy.

• General Liability– normally covers bodily injury, personal injury and property damage.

• Indemnification/Indemnify– Indemnification is a contractual method of transferring risk. In an

Indemnification provision, one part, called the “indemnitor,” agrees to take the financial

responsibility for certain risks that otherwise would have to be paid by the other part, called the

“indemnitee.”

• Occurrence – an event that can result in the filing of an insurance claim. Occurrence policies

cover claims made for injuries sustained during the life of an insurance policy, even if the claim is

filed after the policy has been canceled.

• Professional Liability Insurance– also known as professional “Errors and Omissions” insurance;

available for most providers with advanced training and certification such as physicians, nurse

practitioners, social workers, accountants, architects, engineers, computer program designers,

and brokers.

• Tort Claim– a civil claim for personal injury or wrongful death, or other forms of negligence where

the government is allegedly at fault.

• Workers’ Compensation insurance – provides wage replacement and medical benefits to

employees injured in the course/scope of employment. Oregon requires most employers to carry

workers’ compensation insurance for their employees.

ANY PROPRIETOR/PARTNER/EXECUTIVE

OFFICER/MEMBER EXCLUDED?

INSR ADDL SUBR

LTR INSD WVD

PRODUCER

CONTACT

NAME:

FAXPHONE

(A/C, No):(A/C, No, Ext):

E-MAIL

ADDRESS:

INSURER A :

INSURED

INSURER B :

INSURER C :

INSURER D :

INSURER E :

INSURER F :

POLICY NUMBER

POLICY EFF POLICY EXP

TYPE OF INSURANCE LIMITS

(MM/DD/YYYY) (MM/DD/YYYY)

AUTOMOBILE LIABILITY

UMBRELLA LIAB

EXCESS LIAB

WORKERS COMPENSATION

AND EMPLOYERS' LIABILITY

DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached if more space is required)

AUTHORIZED REPRESENTATIVE

EACH OCCURRENCE $

DAMAGE TO RENTED

CLAIMS-MADE OCCUR

PREMISES (Ea occurrence)

MED EXP (Any one person) $

PERSONAL & ADV INJURY $

GEN'L AGGREGATE LIMIT APPLIES PER: GENERAL AGGREGATE $

PRO-

POLICY LOC

PRODUCTS - COMP/OP AGG

JECT

OTHER: $

COMBINED SINGLE LIMIT

(Ea accident)

ANY AUTO

BODILY INJURY (Per person) $

OWNED SCHEDULED

BODILY INJURY (Per accident) $AUTOS ONLY AUTOS

HIRED NON-OWNED

PROPERTY DAMAGE

AUTOS ONLY AUTOS ONLY

(Per accident)

OCCUR

EACH OCCURRENCE

CLAIMS-MADE

AGGREGATE $

DED RETENTION $

PER OTH-

STATUTE ER

E.L. EACH ACCIDENT

E.L. DISEASE - EA EMPLOYEE $

If yes, describe under

E.L. DISEASE - POLICY LIMITDESCRIPTION OF OPERATIONS below

INSURER(S) AFFORDING COVERAGE NAIC #

COMMERCIAL GENERAL LIABILITY

Y / N

N / A

(Mandatory in NH)

SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE

THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN

ACCORDANCE WITH THE POLICY PROVISIONS.

THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD

INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS

CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS,

EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS.

THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS

CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES

BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED

REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER.

IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must have ADDITIONAL INSURED provisions or be endorsed.

If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on

this certificate does not confer rights to the certificate holder in lieu of such endorsement(s).

COVERAGES CERTIFICATE NUMBER: REVISION NUMBER:

CERTIFICATE HOLDER CANCELLATION

CERTIFICATE OF LIABILITY INSURANCE

DATE (MM/DD/YYYY)

The ACORD name and logo are registered marks of ACORD

6/12/2020

(402) 894-7491 (402) 891-1252

33138

Vigilnet America LLC

4862 S. 96th Street, Suite 2

Omaha, NE 68127

25844

23663

5,000,000

LHC838141 8/1/2019 8/1/2020

100,000

5,000

5,000,000

General & Professional Liability

1,000,000

CPA3226242-20 8/1/2019 8/1/2020

5,000,000

CPA3226242-20 8/1/2019 8/1/2020

5,000,000

CW41880126 8/1/2019 8/1/2020

1,000,000

Sexual Abuse LHC838141 8/1/2019 8/1/2020

Sexual Abuse 1,000,000

Deschutes County, its officers, agents, employees and volunteers are additional insured on a primary and non-contributory basis on the General Liability, and

a waiver of subrogation applies on the Work Comp, as per written agreement, in acord with FORMS #RSG55005, #RSG54146 & #WC000313, as modified and

attached hereto.

Deschutes County Parole & Probation

Attn: Trevor Stephens

63360 Britta Street

Bend, OR 97701

VIGIAME-01 CORI

Quinn Insurance Inc

11815 M Street, Suite 200

Omaha, NE 68137

Cori Tompkins

[email protected]

Landmark American Insurance Company

Union Insurance Company

National American Insurance Company

OVER AUTO ONLY

Vigilnet America LLC

862 S. 96th Street, Suite 2

Omaha, NE 68127

uinn Insurance Inc

11815 M Street, Suite 200

Omaha, NE 68137

Cori Tom

kins

(402) 894-7491

[email protected]

(402) 891-1252

EXAMPLE

Policy_OLCA_CertificateOfInsurance

www.saif.com

400 High Street SE

Salem, OR 97312

P: 800.285.8525

F: 503.584.9812

Mail to: Certificate holder:

THE LATINO COMMUNITY ASSOCIATION

2445 NE DIVISION ST STE 200

BEND, OR 97703-3568

DESCHUTES COUNTY

1300 NW WALL ST

BEND, OR 97701

The policy of insurance listed below has been issued to the insured named below for the policy period

indicated. The insurance afforded by this policy is subject to all the terms, exclusions and conditions of

such policy; this policy is subject to change or cancellation at any time.

Insured

The Latino Community Association

2445 NE Division St Ste 200

Bend, Or 97703-3568

Producer/contact

SAIF Corporation

Portland Service Center

503.673.5283 [email protected]

Issued

Policy

Period

09/21/2020

890414

02/01/2020 to 02/01/2021

Limits of liability

Bodily Injury by Accident

Bodily Injury by Disease

Body Injury by Disease

$500,000 each accident

$500,000 each employee

$500,000 policy limit

Description of operations/locations/special items

Waiver of Subrogation for Deschutes County effective 9/17/20.

Important

This certificate is issued as a matter of information only and confers no rights to the certificate holder. This certificate

does not amend, extend or alter the coverage afforded by the policies above. This

certificate does not constitute a contract between the issuing insurer, authorized representative or producer and the

certificate holder.

Authorized representative

Kerry Barnett

President and CEO

Oregon Workers’ Compensation

Certificate of Insurance

EXAMPLE

EXHIBIT #

CONTRACT TYPE

Contract No. YYYY-XXX

Workers’ Compensation Exemption Certificate

(

To be used only when Contractor claims to be exempt from Workers’ Compensation coverage

requirements)

ontractor is exempt from the requirement to obtain workers’ compensation insurance under ORS Chapter 656 for the following

reason (check the appropriate box):

 SOLE PROPRIETOR

• Contractor is a sole proprietor, and

• Contractor has no employees, and

• Contractor shall not hire employees to perform this contract.

 CORPORATION - FOR PROFIT

• Contractor’s business is incorporated, and

• All employees of the corporation are officers and directors and have a substantial ownership interest* in

the corporation, and

• The officers and directors shall perform all work. Contractor shall not hire other employees to perform this

contract.

 CORPORATION - NONPROFIT

• Contractor’s business is incorporated as a nonprofit corporation, and

• Contractor has no employees; all work is performed by volunteers, and

• Contractor shall not hire employees to perform this contract.

 PARTNERSHIP

• Contractor is a partnership, and

• Contractor has no employees, and

• All work shall be performed by the partners; Contractor shall not hire employees to perform this contract,

and

• Contractor is not engaged in work performed in direct connection with the construction, alteration, repair,

improvement, moving or demolition of an improvement to real property or appurtenances thereto.

 LIMITED LIABILITY COMPANY

• Contractor is a limited liability company, and

• Contractor has no employees, and

• All work shall be performed by the members; Contractor shall not hire employees to perform this contract,

and

• If Contractor has more than one member, Contractor is not engaged in work performed in direct

connection with the construction, alteration, repair, improvement, moving or demolition of an improvement

to real property or appurtenances thereto.

NOTE: Under OAR 436-050-050 a shareholder has a “substantial ownership” interest if the shareholder owns 10% of the

corporation or, if less than 10% is owned, the shareholder has ownership that is at least equal to or greater than the averag

per

centage of ownership of all shareholders.

**NOTE: Under certain circumstances partnerships and limited liability companies can claim an exemption even when performing

construction work. The requirements for this exemption are complicated. Consult with County Counsel before an exemption request

is accepted from a contractor who shall perform construction work.

____________________________________________

______________________________________________

Contractor Printed Name Contractor Signature

________________________________________ __________________________________________

Contractor Title Date