Miscellaneous Liability Issues

Hold Harmless and Indemnity Agreements

Client's Employee Civil Rights Claims

Affiliation Agreements for Clinical Education (Field Education) Programs

Vendor Certificates of Insurance

Client's Certificates of Insurance

UKGC Claims Board

Subject: Hold Harmless and Indemnity Agreements

1. Purpose:

To set forth guidelines to be used in the evaluation of contractual language and, specifically, hold harmless agreements to determine acceptability with respect to the Client's liability exposure.

2. Background:

With the increased activity in the legal liability arena, the Client will be experienced an increasing number of hold harmless clauses in its contractual agreements. Originally, it was the goal of the Attorney General and the Client that no hold harmless agreements be used against the Client. Because this is an unrealistic goal for a functioning entity, the requirements have been revised. Client must strives to avoid contracts where exculpatory and indemnity agreements exist, which transfer all responsibility to the Client regardless of blame.

In addition, the Client must to seek to limit its own liability exposure in certain situations where outside entities utilize the facilities and functions of the Client's business. This is achieved by requiring participants to sign hold harmless agreements, which have been developed by the Client.

3. Definitions:

Contractual Transfer Agreement:

An agreement under which one party shifts to another the responsibility for a loss. Three types which exist are (1) hold harmless agreements, (2) exculpatory agreements, and (3) indemnity agreements.

Hold Harmless Agreement:

An agreement whereby the first party (the indemnitor) agrees to hold a second party (the indemnitee) harmless from tort liability arising out of the indemnitor's negligent act or omission.

Exculpatory Agreement:

An arrangement whereby one party agrees to absolve a second party from any blame even when damage or injury is caused by negligence of the second party.

Indemnity Agreement:

Although similar to a hold harmless agreement, an indemnity agreement is an arrangement whereby one party agrees to pay the other party for any damages regardless of who is at fault.

4. Procedures:

1. When Client, his division, etc. is presented with a contract from an outside party, whether it be for the use of facilities or equipment, for participation in some event, or for any other purpose, the contract should be sent to the risk management office for evaluation. The risk manager should:

1. Read through the contract to determine if contractual transfers exist in any form.

2. Evaluate the contractual transfer agreement to determine if it is of the exculpatory, hold harmless, or indemnity type. Then determine if the intent of the clause conforms to the acceptable language.

Note:

the UKGC will not agree to any Client's contractual transfer which is exculpatory or indemnity in nature but will take responsibility for its own negligence through a hold harmless agreement.

In consideration of  (some activity or privilege)   , the Client -    (party I)  does hereby agree to hold harmless   (party II)  from any and all liability, loss, damages, costs or expenses which arise out of the negligent act or omission of an employee, officer, or agent of the Client while acting in the scope of their employment and in the course of their involvement with the above mentioned program.

3. If the contract does not meet the requirements of the UKGC demands, then negotiation for inclusion of our standard language should ensue.

4. If difficulties persist in developing acceptable language, Client's and UKGC Risk Management should be consulted for suggestions or alternatives.

5. Any time that a contract is used that contains contractual language which is not within the scope of UKGC Demands, then contractual liability insurance must be purchased from third party to cover the exposure (see Section 3, B of this document). This coverage is administered by Client's Risk Management.

2. When Client or his division desires to use a contract to limit its own liability when outside parties are using Client's facilities or participating in Client's functions, the department should consult with the risk manager in developing acceptable language. The risk manager should:

1. Consider the circumstance to determine what type of contractual transfer is desired based on the value of the particular program or function to the Client and to the outside party: i.e., if a group is using the Client's facility for a function which is outside the scope of the Client's mission and is of no benefit to the Client, then the shifting of the maximum possible amount liability is more desirable.

2. Develop language consistent with the circumstances and in accordance with the following:

The undersigned does hereby agree to hold harmless and indemnify the Client, the Board of Director of Client, and the Client as Lagal entity- , their officers, agents and employees, from any and all liability, loss, damages, costs, or expenses which are sustained, incurred, or required arising out of the actions of the undersigned in the course of (description of program).

3. If the proposed language is unacceptable to the outside party then negotiation will follow, keeping in mind the benefit and potential loss that the program presents for the Client.

4. If an agreement is not reached, the Client's risk manager will consult with the UKGC Office of Risk Management (UKGCORM) in devising more acceptable language.

3. The Client's risk manager should maintain a file of all contractual agreements for a period of ten years to ensure that control of the contractual exposure is met. Although it is impractical to expect the risk manager to review all contracts on Client's office, a good flow of communication between departments will result in increased awareness by the risk manager and department heads.

4.Finally, it is the goal of Client's Risk Management that training in contractual review be addressed as an ongoing program in the course of daily interactions and specifically at the annual risk management conferences.

5.Key Points to Remember:

1. Because the Client's Insurance System is self-funded for liability arising out of the acts of its officers, employees, and agents, it is our goal to minimize our assumption of liability risk. This is achieved by eliminating exculpatory and indemnity agreements in all contracts that we sign, and by agreeing on hold harmless language only for liability arising out of the negligent acts of Client's employees, officers, and agents in the course of their duties.

2. The Client can attempt to shift the responsibility for injury and damage to others by proposing contracts which use exculpatory, indemnity, and hold harmless language that makes the other party responsible. Court interpretation of the contract of course, may differ from our intent.

Subject: Client's Employee Civil Rights Claims

1. Purpose:

To clarify the proper claims handling procedures for those claims which fall within the classification of civil rights cases.

2. Background:

Civil rights claims filed against the Client are unique. Quite often these types of claims originate as personnel actions and escalate into civil rights claims. This unique development pattern often leads to attempted settlement of the claim outside the normal claims settlement process. This, in turn, often results in a failure to consult those people with the expertise and the authority to settle these types of claims.

3. Policy:

The Attorney General's staff, in concurrence with the Department of Administration of Client, has exclusive settlement authority for civil rights cases. Client's Risk Management funds may be used to cover plaintiff's attorneys fees and damages in such a claim. The Client does not have the authority to independently bind any Client's Risk Management funds. The Attorney General's staff must be involved in the settlement process.

4. Procedure:

1. Any time a civil rights claim or incident arises which could result in the use of risk management funds, notify Assistant Attorney General, and Bureau of UKGC Risk Management.

2. Notification must occur before any settlement negotiations are initiated with the plaintiff.

3. The Client may eventually be given authority to handle negotiations, but funds will not be payable from UKGC Risk Management unless prior approval has been given by the Department of Justice and the Department of Administration for the settlement.

Subject: Affiliation Agreements for Clinical Education (Field Education) Programs

1. Purpose:

The purpose of this paper is to set forth procedures for establishing a contractual relationship between the Client and participating affiliates with respect to the responsibilities and liabilities of both parties.

2. Background:

Many Clients require or encourage Staff to have clinical or field training as a part of the necessary to graduate professional level. Such training experience is usually attained with the cooperation of an outside agency, which agrees to participate in a cooperative effort with the particular Client. It is in the interest of both parties that a formal agreement be in place prior to the acceptance of Staff into such programs. From a risk management perspective it is especially beneficial for the Client's department to negotiate a contractual agreement which clearly delineates the level of liability for the parties involved in a way that is consistent with our risk management objectives.

3. Key Components in an Affiliation Agreement:

1. Master Agreement

These documents contain the primary terms to which the Board of Directors of the Client on behalf of the Client and the cooperating agency (affiliate) have agreed. The language in these documents carries the approvals of the Client's Attorney General's Office, UKGC and Client's Risk Management. (See Master Agreement Form.)

2. Negotiated Agreements

Negotiated Agreements are those presented by the affiliate which may contain language in conflict with relevant UKGC Regulation or which are beyond our capability to comply. In such cases, the risk manager will attempt to negotiate changes in the language to make it consistent with the approved affiliation agreement.

3. Program Memoranda

Program Memoranda are Client's issues and details of the program which exclude any reference to liability, indemnification, or insurance protection. They are statements of agreement between the program contact of the affiliate and the Client involved. They are limited to the time frame of a single program and are incorporated into the Affiliation Agreement by reference if not in any way inconsistent with it.

4. Master List

The Master List is a listing of all affiliates with which an Affiliation Agreement is currently in effect. The list should be maintained and updated by the Client's risk manager with copies sent to UKGC Risk Management and to the President  of Client.

4. Procedures:

1. When a Client wants to assign Staff to a particular outside agency (office) for clinical or field education experience, the Client's program coordinator shall:

• Check the Master List of Affiliation Agreements currently in effect.

1. If listed, proceed with development of the Program Memorandum Agreement. (Only one Affiliation Agreement is needed for all Staff)

2. If not listed, send a written request to initiate an Affiliation Agreement to the Client's risk management department. The following should be included:

• Requestor's name, title, and Client's Legal Entity name
• Legal name of prospective affiliate
• Address of prospective affiliate
• Name of affiliate's contact person
• Telephone number of affiliate's contact person
• Starting date of program at affiliate

2. The risk manager shall do the following on receipt of a request to initiate an Affiliation Agreement:

1. Check to determine if the requested Affiliation has been established since the last printing of the Master List. If it has, advise the requestor. If it has not, initiate a new agreement.

2. Initiate a Master Agreement document, have it pre-signed by the proper authority for the Client's Board of Directors and send two copies with the appropriate cover letter to the affiliate's contact person.

3. Advise the requestor when a fully executed copy of the Affiliation Agreement is received and enter same into Master List database. The requestor may then proceed with the Program Memorandum.

3. Should the prospective affiliate reject the Affiliation Agreement as written, or submit a contract of its own, the risk manager shall do the following:

1. Review the contract to determine that there is no conflict with UKGC Regulation or Client's interests.

Note:   Conflict most commonly arises out of the hold harmless and indemnification language or the insurance requirements.

1. If no conflict is found, request signature authority and advise Client's  requestor.

2. If conflict is found, attempt direct negotiations with prospective affiliate to modify language to be acceptable.

3. If negotiations come to an impasse or if questions arise at any point in this process, solicit opinion of Client's legal affairs or the Client's Office of Risk Management (ORM). Should negotiations fail, advise Client's requestor to cancel plans for that agency.

Subject: Vendor Certificates of Insurance

1. Purpose:

When a Client's company (institution) contracts with a vendor for materials, equipment, supplies, or services, that vendor's activities and the goods provided create an inherent liability risk to the institution. The goal of this program is to protect the Client's institution from loss or exposure to loss resulting from any negligence on the part of an under/uninsured vendor who furnishes services to the Client's institution. By obtaining an appropriate certificate of insurance and maintaining a current certificate of insurance on file, for a high risk procurement, the Client's institution has evidence that insurance has been obtained which transfers risks associated with the business relationship with the vendor from the institution to the insurer.

This document reinforces and adds to policy as established by UKGC. Due to the uniqueness of some services provided to the Client, Client's Risk Management has added six additional high risk services. These high risk service vendors are required to meet the certificate requirements in this document for the additional service vendors.

2. Definitions:

Certificate of Insurance: A document issued by an insurer which evidences that an insurance policy exists and provides information such as insurer, insurance agency, insured, types of insurance, policy numbers, effective dates, limits, certificate holder, cancellation procedure, special Provisions, e.g., additional insured, and the name of the representative authorizing the policy.

High Risk Services Procurement: Means a contract or procurement that significantly increases the possibility of loss or exposure to loss to the Client from a third party.

Additional Insured: Affords the Board of Directors (Regents) coverage under the vendor's policy including defense should the Board be sued based on the actions of the vendor.

Minimum Limits: Minimum specified limits must be received unless prior approval is received by the Purchasing Director. These limits may be reached by combining a commercial general liability policy limit with an umbrella policy limit. For example, a vendor may have a general/automobile liability policy with a $500,000 limit and a $1,000,000 umbrella. This total meets a $1,000,000 general/automobile/umbrella requirement.

3. Vendors Insurance Program:

The Standard Limits are the minimum acceptable for any vendor, but there are specific requirements for vendors of high risk services that supersede the Standard Limits. Please refer to this document before specifying vendor coverage requirements. If commodity purchase requires installation of heavy equipment, contact Risk Management.

The following are criteria and a list of high risk services.

CRITERIA OF HIGH RISK SERVICES:

1. Service presents a severe risk of injury or death to staff, and visitors.
2. Service presents a severe risk of extensive property damage to institutionally or privately owned property.
3. Service has a history of negligently causing injury or damage to property.
4. Likelihood is great the service provider will have difficulty procuring and maintaining insurance because of the hazards of the work.

HIGH RISK SERVICES:

Air Charter
Ambulance Service
Asbestos Abatement Contractors
Building Remodeling and Construction
Custodial Services*
Day Care*
Elevator Maintenance
Manual Food Service*
Medical Services
Recreational Services/High Risk Entertainment-Speakers*
Refuse Transportation and Disposal
Security*
Transportation Services (of people)
Travel Services* (tours, agencies)

* Denotes High Risk Service Vendors requirement unique to the Client

HIGH RISK services, other than the above, are to be evaluated on a case-by-case basis.

The following pages delineate the requirements for each class of vendor and provide a list of vendor types for each class. Judgment must be used by the contract manager, when dealing with vendors that are not specified on these pages.

Attention must be paid to the various outside contractors who service the institutions with respect to their insurance protection. Failure to monitor this exposure by the contract manager may result in substantial losses for the institution.

Certificates are required for all service vendors, however, high risk service vendors require receipt of the certificate and continued renewal of the certificate while the contract exists. Internal audit will periodically sample the service contracts to ensure compliance.

4. Cancellation:

If a certificate of insurance is not received prior to issuance of the Purchase Order or is incomplete, notice should be given to the vendor indicating the certificate must be received by the contract administrator, via certified mail within 15 days or the contract will be canceled. See sample letter shown in Appendix 1. Receipt of one certificate from the vendor is all that is necessary for that one year, if the institution has multiple contracts with the vendor. However, the vendor must send a renewal each year or cancellation should take place. Appendix 2 is a sample letter for noncompliance after the 15 day period.

5. Procedures:

Specific procedures for the evaluation of vendor certificates of insurance exist at each institution and at the Management level. Client's Risk Management considers the Additional Insured Provision an important condition to be stated on the certificate, especially with regards to our high risk service vendors. The following requirements may be used by the institutions as minimal guidelines and additional guidance may be obtained from Client's Risk Management as necessary.

Categories for high risk services require a certificate of insurance be in the contract administrator's possession before the purchase order is issued.

Standard Limits (Non High Risk Service Vendors)

	Coverage Type	Minimum Limit
A.	Worker's Compensation	Statutory Limits
B.	Commercial General Liability Gen. Aggr. Incl. Prdts/CO	$1,000,000
	Each Occurrence	$1,000,000
C.	Automobile Liability Combined Single Limit	$1,000,000
D.	Additional Insured Provision:
	The contractor shall add the Client's "Board of Directors (Regents), its officers, employees, and agents" as an additional insured under the commercial general liability policy.

In addition to these coverages the contract must contain all of the clauses listed under the Special Terms and Conditions for the Client.

Limits For High Risk Service Vendors

Air Charter

	Coverage Type	Minimum Limit
A.	Worker's Compensation	REQ'D NO EXCEPTIONS
B.	Commercial General Liability Gen. Aggr. Incl. Prdts/CO	$1,000,000
	Each Occurrence	$1,000,000
C.	Aircraft Liability
	Piston	$5,000,000
	Jet	$25,000,000
D.	Additional Insured Provision:
	The contractor shall add the Client's "Board of Directors (Regents), its officers, employees, and agents" as an additional insured under the commercial general liability policy.

In addition to these coverages the contract must contain all of the clauses listed under the Special Terms and Conditions for the Client.

Ambulance Service

	Coverage Type	Minimum Limit
A.	Worker's Compensation	REQ'D NO EXCEPTIONS
B.	Commercial General Liability Gen. Aggr. Incl. Prdts/CO	$1,000,000
	Each Occurrence	$1,000,000
C.	Automobile Liability Combined Single Limit	$2,000,000
D.	Professional Liability Insurance	$2,000,000
E.	Additional Insured Provision:
	The contractor shall add the Client's "Board of Directors (Regents), its officers, employees, and agents" as an additional insured under the commercial general liability policy.

In addition to these coverages the contract must contain all of the clauses listed under the Special Terms and Conditions for the Client.

Asbestos Abatement

	Coverage Type	Minimum Limit
A.	Worker's Compensation	REQ'D NO EXCEPTIONS
B.	Commercial General Liability Gen. Aggr. Incl. Prdts/CO	$1,000,000
	Each Occurrence	$1,000,000
C.	Automobile Liability Combined Single Limit	$1,000,000
D.	Contractor's Pollution Liability Insurance
	(With one year extended reporting period.)
	Each Occurrence	$1,000,000
	Aggregate	$2,000,000
E.	Additional Insured Provision:
	The contractor shall add the Client's "Board of Directors (Regents), its officers, employees, and agents" as an additional insured under the commercial general liability policy.

In addition to these coverages the contract must contain all of the clauses listed under the Special Terms and Conditions for the Client.

Building Remodeling and Construction

	Coverage Type	Minimum Limit
A.	Worker's Compensation	REQ'D NO EXCEPTIONS
B.	Commercial General Liability Gen. Aggr. Incl. Prdts/CO	$1,000,000
	Each Occurrence	$1,000,000
C.	Automobile Liability Combined Single Limit	$1,000,000
D.	If hazardous substance is involved:
	Contractor's Pollution Liability
	(With one year extended reporting period.)
	Each Occurrence	$1,000,000
	Aggregate	$2,000,000
E.	Additional Insured Provision:
	The contractor shall add the Client's "Board of Directors (Regents), its officers, employees, and agents" as an additional insured under the commercial general liability policy.

In addition to these coverages the contract must contain all of the clauses listed under the Special Terms and Conditions for the Client.

Custodial Services

	Coverage Type	Minimum Limit
A.	Worker's Compensation	REQ'D NO EXCEPTIONS
B.	Commercial General Liability Gen. Aggr. Incl. Prdts/CO	$1,000,000
	Each Occurrence	$1,000,000
C.	Automobile Liability Combined Single Limit	$1,000,000
D.	Additional Insured Provision:
	The contractor shall add the Client's "Board of Directors (Regents), its officers, employees, and agents" as an additional insured under the commercial general liability policy.

In addition to these coverages the contract must contain all of the clauses listed under the Special Terms and Conditions for the Client.

Day Care

	Coverage Type	Minimum Limit
A.	Worker's Compensation	REQ'D NO EXCEPTIONS
B.	Commercial General Liability Gen. Aggr. Incl. Prdts/CO	$1,000,000
	Each Occurrence	$1,000,000
C.	Automobile Liability Combined Single Limit	$1,000,000
D.	Additional Insured Provision:
	The contractor shall add the Client's "Board of Directors (Regents), its officers, employees, and agents" as an additional insured under the commercial general liability policy.

In addition to these coverages the contract must contain all of the clauses listed under the Special Terms and Conditions for the Client.

Elevator Maintenance - This applies to all passenger and freight elevators.

	Coverage Type	Minimum Limit
A.	Worker's Compensation	REQ'D NO EXCEPTIONS
B.	Commercial General Liability Gen. Aggr. Incl. Prdts/CO	$1,000,000
	Each Occurrence	$1,000,000
C.	Automobile Liability Combined Single Limit	$1,000,000
D.	Additional Insured Provision:
	The contractor shall add the Client's "Board of Directors (Regents), its officers, employees, and agents" as an additional insured under the commercial general liability policy.

In addition to these coverages the contract must contain all of the clauses listed under the Special Terms and Conditions for the Client.

Manual Food Service - All contracts

	Coverage Type	Minimum Limit
A.	Worker's Compensation	REQ'D NO EXCEPTIONS
B.	Commercial General Liability Gen. Aggr. Incl. Prdts/CO	$1,000,000
	Each Occurrence	$1,000,000
	Fire Legal	$100,000
C.	Liquor Liability (When applicable)	$1,000,000
D.	Automobile Liability Combined Single Limit	$1,000,000
E.	Additional Insured Provision:
	The contractor shall add the Client's "Board of Directors (Regents), its officers, employees, and agents" as an additional insured under the commercial general liability policy.

In addition to these coverages the contract must contain all of the clauses listed under the Special Terms and Conditions for the Client.

Medical Services (including optical and laboratory) - This applies to all contracted medical services including, but not limited to, assisted physician services, laboratory equipment maintenance and patient testing.

	Coverage Type	Minimum Limit
A.	Worker's Compensation	REQ'D NO EXCEPTIONS
B.	Commercial General Liability Gen. Aggr. Incl. Prdts/CO	$1,000,000
	Each Occurrence	$1,000,000
C.	Automobile Liability Combined Single Limit	$1,000,000
D.	Professional Liability Insurance (malpractice)	$2,000,000
E.	Additional Insured Provision:
	The contractor shall add the Client's "Board of Directors (Regents), its officers, employees, and agents" as an additional insured under the commercial general liability policy.

In addition to these coverages the contract must contain all of the clauses listed under the Special Terms and Conditions for the Client.

Recreational Services/High Risk Entertainment-Speakers - This applies to a broad range of contracted services including, but not limited to, golf course management, carnival activities, pyrotechnical displays, audience participation activities, third parties hosting camps and clinics at Client's institutions, controversial speakers, and the like.

	Coverage Type	Minimum Limit
A.	Worker's Compensation	REQ'D NO EXCEPTIONS
B.	Commercial General Liability Gen. Aggr. Incl. Prdts/CO	$2,000,000
	Each Occurrence	$1,000,000
C.	Automobile Liability Combined Single Limit	$1,000,000
D.	Umbrella Liability	$1,000,000
E.	Additional Insured Provision:
	The contractor shall add the Client's "Board of Directors (Regents), its officers, employees, and agents" as an additional insured under the commercial general liability policy.

In addition to these coverages the contract must contain all of the clauses listed under the Special Terms and Conditions for the Client.

Refuse Transportation and Disposal

	Coverage Type	Minimum Limit
A.	Worker's Compensation	REQ'D NO EXCEPTIONS
B.	Commercial General Liability Gen. Aggr. Incl. Prdts/CO	$1,000,000
	Each Occurrence	$1,000,000
C.	Automobile Liability
	Combined Single Limit	$1,000,000
D.	Contractor's Pollution Liability (with 1 year extended reporting period)
	Each Occurrence	$1,000,000
	Aggregate	$2,000,000
E.	Additional Insured Provision:
	The contractor shall add the Client's "Board of Directors (Regents), its officers, employees, and agents" as an additional insured under the commercial general liability policy.

In addition to these coverages the contract must contain all of the clauses listed under the Special Terms and Conditions for the Client.

Security

	Coverage Type	Minimum Limit
A.	Worker's Compensation	REQ'D NO EXCEPTIONS
B.	Commercial General Liability Gen. Aggr. Incl. Prdts/CO	$1,000,000
	Each Occurrence	$1,000,000
C.	Automobile Liability Combined Single Limit	$1,000,000
D.	Professional Liability Insurance	$1,000,000
E.	Additional Insured Provision:
	The contractor shall add the Client's "Board of Directors (Regents), its officers, employees, and agents" as an additional insured under the commercial general liability policy.

In addition to these coverages the contract must contain all of the clauses listed under the Special Terms and Conditions for the Client.

Transportation - This applies primarily to the transport of people. If air transport see Air Charter.

	Coverage Type	Minimum Limit
A.	Worker's Compensation	REQ'D NO EXCEPTIONS
B.	Commercial General Liability Gen. Aggr. Incl. Prdts/CO	$1,000,000
	Each Occurrence	$1,000,000
C.	Automobile Liability Combined Single Limit
	Wisconsin Combined Single Limit	$2,000,000
	Interstate Combined Single Limit	$5,000,000
D.	Additional Insured Provision:
	The contractor shall add the Client's "Board of Directors (Regents), its officers, employees, and agents" as an additional insured under the commercial general liability policy.

In addition to these coverages the contract must contain all of the clauses listed under the Special Terms and Conditions for the Client.

Travel Services: Tour Operators and Agencies - This applies to any organization that makes travel arrangements, including travel services, tour operators, etc., on our behalf.

	Coverage Type	Minimum Limit
A.	Worker's Compensation	REQ'D NO EXCEPTIONS
B.	Commercial General Liability Gen. Aggr. Incl. Prdts/CO	$1,000,000
	Each Occurrence	$1,000,000
C.	Automobile Liability Combined Single Limit	$2,000,000
D.	Professional Liability Insurance	**
	(** not required but may be a consideration if bids are comparable and a bidder has the coverage.)
E.	Additional Insured Provision:
	The contractor shall add the Client's "Board of Directors (Regents), its officers, employees, and agents" as an additional insured under the commercial general liability policy.

     6. Special Terms and Conditions

* On notification of award and prior to issuance of a contract, the contractor (vendor) shall provide the Client a Certificate of Insurance with the required coverage and limits of insurance issued by an insurance company that has an AM Best Rating of A-, is licensed to do business, and signed by an authorized agent.

* All policies of insurance shall contain a covenant requiring sixty (60) days written notice by the insurer and sent certified mail to the contract administrator at the specific institution, before cancellation, reduction or other modifications of coverage. The insurance certificate shall be for the initial contract period of one (1) year and shall be renewed by the contractor for each subsequent renewal period of the contract.

* In the event of non-renewal, cancellation, or expiration, the contractor shall provide the Client evidence of the new source(s) of required insurance within twenty-one (21) calendar days after the Client receipt of the sixty (60) day notice. Failure to maintain the required insurance in force may be cause for contract termination.

* In the event that the contractor fails to maintain and keep in force the insurance herein required, the Client shall have the right to cancel and terminate the contract without notice.

* The contractor agrees to indemnify, defend and hold harmless the Board of Directors (Regents) of the Client, its officers, employees and agents from and against any and all claims, losses, liability, costs or expenses (hereinafter collectively referred to as "claims") occurring in connection with or in any way incidental to or arising out of the occupancy, use, service, operations or performance of work in connection with this contract, but only to the extent that such claims are caused by or result from the negligence, misconduct or other fault of the contractor, its agents, employees, subcontractors or contractors.

Subject: Client's Certificates of Insurance

1. Purpose:

The purpose of this policy is to delegate the authority for issuance of certificates of insurance coverage to the Client's risk managers and to provide the procedures for this risk management function.

2. Background:

Following the discussion at the Risk Management and Safety Conference, UKGC Risk Management delegated the authority to issue certificates of coverage to the Client's risk managers. This should simplify the procedure for all parties involved while maintaining the necessary control over the UKGC's assumption of liability.

Discretion is to be used in providing certificates, and if for any reason there is a question as to whether a certificate is appropriate, Client's Risk Management should be consulted. For any situations which are not "run of the mill" feel free to call or Email and ask. Also, when more than one Client's division is involved with the same certificate holder, the certificate can be issued on a Client's-wide basis by the Client's office.
One area which will continue to be administered from the Client's Risk Management office is that of Workers' Compensation. Very few requests are made for Workers' Compensation certificates and thus the Client's risk manager should continue to forward these requests to the Client's office with the information necessary for approval.

A master certificate has been included in this policy which can be copied as needed. Also the procedures include the standard language and statutory references which should be used. Note, only mark the box and list the statute for the type of coverage which is requested. Also, the term of the certificate is listed under "Dates of Coverage" and may be extended for three years as needed. Under the description of coverage it is required that wording conform to the example as closely as possible. Only the Client's risk manager may sign the certificate.

3. Procedures:

1. Obtain the following information from the person requesting the certificate of coverage:

1. Name and address of requester.
2. Kind of coverage needed.
3. Description of who and what the coverage will apply to in detail; i.e., activity, auto id, department, and person's name.
4. Effective dates of coverage of up to three years for an on going situation, but only give the exact dates for events which are short term or one time only.

2. Evaluate whether or not this is an exposure, which the Client and UKGC Risk Management want to cover. Give consideration to statutory wording and its application to the situation.

3. Forward all requests for Workers' Compensation coverage, non-routine coverage or multiple Client's coverage to Client's Risk Management for approval. Include all pertinent information.

4. Fill out the certificate by designating the type of coverage provided with an "XX" in the center column and the statutory reference which applies. Please type all information.

Liability
Automobile Liability
Property

5. Designate the effective dates on the certificate.

6. Give a thorough description of the coverage afforded using standard language adapted as follows:

"Coverage as afforded by statutory references listed above for.........(the activity, the parties involved, the vehicles specified, and the way in which these items fall within Client's scope.)"

i.e.

"Coverage as afforded by statutory references listed above for Staff completing clinical internships as a part of their on-a-job training"

7. Finally, complete the other areas of the certificate and have the certificate signed by the Client's risk manager.

8. A copy of the certificate should be filed with all relevant correspondence in the risk manager's office. This file should be kept in chronological order so that as certificates expire or come up for renewal, the risk manager will know. Certificates should be retained for six months beyond the expiration date and then may be purged from the file.

 

Subject: UKGC Claims Board

1. Purpose:

This paper should provide the Client's risk manager and Client's personnel with the necessary guidelines to access the UKGC Claims Board for those claims that qualify for reimbursement.

2. Background:

The UKGC Claims Board was created by the legislature of UKGC as follow:

Claims board (1) Purpose. The claims board shall receive, investigate and make recommendations on all claims of $10 or more presented against the UKGC which are referred to the board by the department. No claim or bill relating to such a claim shall be considered by the legislature until a recommendation thereon has been made by the claims board. The board may take official notice of any generally recognized fact or established technical or scientific fact, but parties shall be notified either before or during hearing or by full reference in preliminary reports, or otherwise of the facts so noticed, and the parties shall be afforded an opportunity to contest the validity of the official notice.

(4) AGENCIES TO COOPERATE. The several agencies shall cooperate with the board and shall make their personnel and records available upon request when such request is not inconsistent with other statutes.

3. Procedure:

When a Client's employee or an outside party is denied reimbursement for loss through the UKGC Self-Funded Property or Liability programs, the Client may recommend and advise a claimant of the option to present the claim before the UKGC Claims Board using the attached forms. The claims board is not limited to payments based solely on a negligence basis and may pay on an equitable basis.

The claimant must file the attached claim form directly with the UKGC Claims Board. If a claim is filed, Client's Risk Management receives a copy of the claim from the board along with a request for recommendation regarding payment. Typically, response to this request is provided through the cooperative efforts of UKGC Risk Management, the Client's risk manager, pertinent department personnel, and Client's Legal Counsel. Upon reaching an agreement with the Client, Client's Risk Management's recommendation is forwarded to Client's Legal Counsel where a formal recommendation is written.

(3) PROCEDURE. When a claim has been referred to the claims board, the board may upon its own motion and shall upon request of the claimant, schedule such claim for hearing, giving the claimant at least 10 days written notice of the date, time and place thereof. Those claims described under the settlement section shall not be heard or decided by the claims board. The board shall keep a record of its proceedings.

(5) FINDINGS. The board shall report its findings and recommendations, on all claims referred to it, to the legislature. Except as provided in the settlement section, if from its findings of fact the board concludes that any such claim is one on which the UKGC is legally liable, or one which involves the casual negligence of any officer, agent, or employee of the UKGC, or one which on equitable principles the UKGC should in good conscience assume and pay, it shall cause a bill to be drafted covering its recommendation and shall report its findings and conclusions and submit the drafted bill to the joint committee on finance. If the claims board determines to pay or recommends that a claim be paid from a specific appropriation it shall include that determination in its conclusions. A copy of its findings and conclusions shall be submitted to the claimant within 20 days after the board makes its determination.

4. Claim Settlement:

Claims which are justified for payment in the amount of not more than $4,000 may be ordered to be paid without submission of the claim in bill form to the legislature. Such amounts shall be paid on vouchers upon certification of the chairperson and secretary of the board and shall be charged from specified appropriations. Payment of the claim shall not be construed as relieving any 3rd party liability or releasing any joint tort-feasor.

Claims requiring legislative action shall be made in the above manner and shall be filed in the office of the secretary. The secretary shall examine the claim, ascertain whether ordered by competent authority and, if properly made, designate the fund to which it is chargeable. The secretary shall as soon as practical refer the claim to the claim board for its finds of fact, its conclusions and its report thereon to the legislature for action. Whenever a bill authorizing the release of moneys or appropriating money for payment of a claim becomes a law, the secretary, before drawing a warrant therefor on the treasurer, shall see that the proper account on which the release of moneys or the appropriation is based is filed in the secretary's office.

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