Agenda packet — Oakdale City Council, May 5, 2025 (part 2 of 2)

Special Events
Activities where Commercial General Liability Insurance in the amount of $1,000,000 per occurrence / $2,000,000 aggregate is standard:

Aerobics Demonstrations
Animal Shows (not circuses or zoos)*
Antique Shows
Art Festivals
Art Shows
Auctions
Automobile Shows
Award Presentations
Ballets
Banquets
Baton Twirling
Bazaars
Beauty Pageants
Bingo/Casino Games
Block Parties – w/street closures
Blood Drives
Boat Shows
Body Building Contests
Bounce Houses
Business Meetings/Shows
Candidate Forums
Carnival Rides (non-mechanical)
Casinos/Lounge Shows
Charity Benefits/Auctions
Christmas Tree Lighting
Civic Clubs
Community Fairs
Concerts – under 1500 att.

Consumer Shows
Conventions
Corporate Events
Craft Shows
Dance Shows/Dances
Debutante Balls
Debuts
Dinner Theater
Dog Shows
Drill Team Exhibitions
Educational Exhibitions
Electronic Shows
Ethnic Fairs
Evangelistic Meetings
Expositions
Farmers Markets
Fashion Shows
Festivals
Fishing Shows
Flea Markets
Flower Shows
Food Vendors
Garden Shows
Graduations
Harvest Festivals
Holiday Shows
Home shows
Instructional Classes
Job Fairs
Ladies Club Events
Lectures
Livestock Shows
Luncheons
Marathons/Foot Races
Meetings
Mobile Home Shows
Musicals
Night Club Shows
Operas
Pageants
Petting Zoos
Plays
Political Rallies
Proms
Quinceaneras
Receptions
Religious Assemblies
Reunions
Rummage Sales
RV Shows
Scavenger Hunts
Scouting Jamborees
Seminars
Showmobile Rental
Sidewalk Marches
Sidewalk Sales
Sight Seeing Tours
Soap Box Derbies
Social Receptions
Speaking Engagements
Sporting Events (non-contact, non-professional, nonleague) Street Fairs
Swap Meets
Symphony
Teleconferences
Telethons
Trade Shows
Union Meetings
Voter Registrations
Wake
Walk a Thons
Weddings
*May require additional coverage depending on nature
of animals
**If Liquor is being served, a Liquor Liability
requirement for $1M is recommended.

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Activities where Commercial General Liability Insurance in the amount of $2,000,000 per occurrence / $4,000,000 aggregate is standard:

Aircraft/Aviation action events
All Terrain boarding
Any event with attendance of 1500 or more
Ballooning or balloon rides
BASE Jumping
Bouldering
Bungee Jumping
Carnivals with mechanical rides
Circus
Concert – heavy metal, rap, mosh pits, > 6 hours i.e music festival Explosives
Football
Hand Gliding
Heads of State Events
Jousting
Kayaking
Mechanical Amusement Rides
Motorized Sports – speed or demolition events
Mountain Biking
Parachuting
Parades
Paragliding/parasliding
Polar Bear Plunges
Power Boat Racing
Pyrotechnics*
Rafting
Raves
Repelling
Rock Climbing
Rodeo or Roping Events
Rugby
SCUBA Diving
Sporting Events (full contact, professional, league events)* Swimming*
*Some of the above events, could require more coverage depending on nature of activity

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Special Events Coverage Referrals:

HUB International:
https://www.hubinternational.com/programs-associations/event-insurance/ Special Events Coverage
(925) 609-6500; Fax: (925) 609-6550
400 Taylor Blvd., Suite 300, Pleasant Hill, CA 94523
Contact: Joy Cummings
Email: [email protected]
For an Alliant broker:

Penny DeWitt-Holdren
Account Manager - Lead
CA License No. 0D02740
Special Events Public Entity
Alliant Insurance Services, Inc.
18100 Von Karman Avenue 10th Floor
Irvine, CA 92612
CA License No. 0C36861
T: 949-660-8142
E: [email protected]
Alliant.com
Risk, Insurance, Certificates & Endorsements
2024
Protecting the City
Disclaimer
This presentation, the statements, contents, and information have been prepared for general information purposes only. The are not intended to serve as legal advice or as a guarantee, warranty or prediction regarding the outcome of any particular matter, legal or otherwise, and may not be correct for your situation. It is subject to change at any time and may be incomplete and/or may contain errors. You should not rely on the statements, contents, or information contained or provided herein or attached hereto without first consulting a licensed and qualified attorney in the proper jurisdiction. 2 2024

1. Risk & Risk Management

2. Contractual Risk Transfer

3. Insurance Coverage

4. Certificates of Insurance

5. Endorsements

6. Recap

7. Special Events Resources

8. Sedgwick’s Risk Matrix

9. Questions
Agenda
Risk & Risk
Management
What is Risk Management?
The forecasting and evaluation of financial risks together with the identification of procedures to avoid or minimize their impact.
• Proactive vs Reactive = planning for the future, or waiting for things to happen • Pure Risk = a complete loss or no loss at all, such as a natural disaster • Business Risk = inability or operate or financial loss resulting from internal or external factors Internal: Strategic mistakes, management errors, or poor investments External: Natural disasters, cyber attacks, supply chain disruptions, or economic sanctions Risk Tolerance
• Risk taker
• Risk avoider
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Liability “Exposure”
What could possibly go wrong?
City has a duty to provide a safe environment for its employees and the public - where are the vulnerabilities?
Liability Peril - Possibility someone will file claim and will trigger a need for the City to spend money in response, such as its Retained Limit or more… Liability Claims - Will be allegations related to bodily injury and property damage to 3rd parties
Risk Exposure - A quantitative analysis of future loss potential. 2024 6
Vicarious Liability
When the City is held responsible for injuries to a third party that are caused by another entity, such as a City hired vendor or employee.

City could be alleged to be responsible for:
• Negligent acts of their contractor or vendor
• Negligent hiring
• Supervisory negligence
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There are Four basic Things We can do with Risk?
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We can avoid it Avoid
We can practice risk control
Loss prevention (reducing the frequency)
Loss reduction (reducing the severity)
Control
We can transfer some of our risk to another party Transfer! We can insure it
We can retain (keep, self-insure, not insure) it Finance (Pay For) • Evaluate the level of risk of each project.
 Look for risky activities involving:
o kids, large crowds, subsurface conditions, high voltage, water, heights, ladders, scaffolding, pyrotechnics, flammable products, alcohol, etc.
• The size of the agreement should not be the determining factor in assessing risk.  Potential liabilities have a limited relationship to the $ amount of the of the work or agreement. Even in a small-dollar contract, exposures could result in significant loss. • Build indemnity and insurance coverage requirements around the risk evaluation.

Some Points of Risk Assessment
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Contractual Risk
Transfer
• Indemnity language in contract
• Insurance requirements in contract
• Proof of Insurance = Certificate of Insurance & Endorsements Elements of Risk Transfer
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Contractual Risk Transfer
• Transfers
 Financial Burden
 Legal Responsibility
• To another party
 Who has better knowledge of the risk
 Who can better control risk
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Transfer some of the City’s risk of
loss to the party that’s in the
best position to control the risk.

When is Risk Transfer Necessary?
Leases
Construction
Contracts
On site:

Maintenance and
services
Professional
services -
financial
Permits
Special Events
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Why does Risk Transfer Make Sense?
Landlord / Tenant
The City owns a building.

Tenant leases the building
The tenant has more CONTROL over what
takes place within that space.

Tenant’s invitees visit the space.

The landlord transfers risk of building
ownership to the tenant.
14 2024
Contractor
The Contractor has responsibility for their
work/project.

The Owner transfers the risk of the
work/project to the Contractor.

The Contractor has more CONTROL over the
workspace in connection with its operations.

The City transfers risk of the work/project
operation to the Contractor.

Indemnity Language Sample
INDEMNIFICATION. Contractor shall indemnify, defend, and hold harmless City, its officers, agents, employees and representatives from and against any and all claims, losses, liabilities or damages, demands and actions, including payment of reasonable attorney’s fees, arising out of or resulting from Services performed under this Agreement. The foregoing obligation of Contractor shall not apply when (1) the injury, loss of life, damage to property, or violation of law arises solely from the sole negligence or willful or active misconduct of the City or its officers, employees, agents, or volunteers and (2) the actions of Contractor or its employees, subcontractor, or agents have contributed in no part to the injury, loss of life, damage to property, or violation of law.
15 2024
Indemnity Language Simplified
Vendors agrees:
• It will hold City harmless from any liability that results from their work under the agreement • It will pay for any liability as a result of its operations except for “willful” or “sole” or “active” negligence of City
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Example Scenario - What did the City overlook?
City goes into a contract with a vendor who washes all City Hall windows every month. The Contract includes an indemnity agreement where the Vendor agrees to hold City harmless for the Vendor’s liability related to the agreement.

Window Washer drops squeegee from 3rd floor and it lands on new Tesla, smashing the window. Tesla owner files a claim against the City. The City submits the claim to the Vendor; however, the Vendor did not carry any insurance and has no financial means to protect the City.
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Insurance Coverage
Agenda
• Indemnity language in contract
• Insurance requirements in contract
• Proof of Insurance = Certificate of Insurance & Endorsements Elements of Risk Transfer
Indemnity provision in contract
provides the obligation
Insurance ensures availability of funds to support
the indemnification assumed by the vendor
2024 19 INSURANCE
• Insurance requirements in the agreement specifies the types and limits of insurance required of the vendor being hired (they might not know what they need)
• Vendor provided insurance in accordance with the contract insurance requirements ensures availability of funds to support the indemnification assumed by the vendor in the agreement
• Outline expectations in agreement with vendor for endorsements, subcontractors, policy cancellation; thus, if endorsements are not correct, fault is transferred to vendor rather than the city Insurance Provisions
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Core Coverages
• Commercial General Liability
• Auto Liability
• Workers’ Compensation and Employers Liability
• Umbrella/Excess Liability
Add for Consultants
• Professional Liability/Errors and Omissions
Typically Required Insurance Coverages
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General Liability
Bodily injury and property damage to third parties
• Injuries to third parties
• Damage to third party stuff
General Liability policy generally divides coverage into two time periods • Injury or damage that occurs during the work (Ongoing Operation) • Or after the work is complete (Completed Operation)
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Automobile Liability
Automobile Liability covers:
• Bodily injury to others
• Damage to other vehicles
• Damage to property, other than autos
Types of Autos
• Owned
• Non-owned
• Hired vehicles (rented)
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Workers’ Compensation & Employers Liability
Two types of coverage:

1. Statutory
• Benefits determined by state law with no “limit”
• Statutory includes Medical & Hospital Bills, Lost Wages, Disability

2. Employers Liability
• Protects employers from financial loss if a worker has a job-related injury or illness not covered by Workers Compensation
Example: Suit brought by injured party who was illegally hired • There are three categories of limits. Limits apply to Each Accident, Disease-Policy Limit, Disease-Each Employee
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Umbrella/Excess Liability
Total GL Total Auto Total WC
$6,000,000 $6,000,000 $6,000,000
$1,000,000
GL*
$1,000,000
AUTO
$1,000,000
WC
*over each GL limit
$5,000,000
25 2024 25
Umbrella Policy Excess Liability Policy
$5,000,000
$1,000,000
GL*
Total GL
$6,000,000
Policy covers financial loss to the City arising out of the professional’s work, plans, or advice Types of professionals:
• Attorneys, CPA’s, Architects and Engineers
• Other professionals or consultants performing services where the City could be harmed financially by their advice or recommendation Other professional coverage is Technology Errors and Omissions:

For technology providers or manufacturers
Professional Liability Errors and Omissions
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Certificates of
Insurance
Agenda
• Indemnity language in contract
• Insurance requirements in contract
• Proof of Insurance = Certificate of Insurance & Endorsements Elements of Risk Transfer
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Certificate of Insurance
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“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.”
Certificates of Insurance (COI)
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• Certificates provide evidence of the policies
are in force for your vendor or contractor
on the day of issuance
• They provide information only as of the
date of issuance (see text on COI)
• The inception and expiration date of each
coverage is provided
Endorsements
Agenda
• Indemnity language in contract
• Insurance requirements in contract
• Proof of Insurance = Certificate of Insurance & Endorsements Elements of Risk Transfer
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Endorsement Terminology
• Additional Insured = Additional Covered Party
• Waiver of Subrogation = Right to Recover (Vendor’s insurance carrier gives up its right to recover damages from another party (e.g. City)) • Primary = Other party’s insurance “will be excess”
• Non-contributory = Other party’s “insurance shall not contribute to …” 2024 33
Policy Endorsements
• An endorsement is a change to an insurance policy to add, delete, or modify coverage or policy terms
• Endorsements can be standard issue forms from the Insurance Services Office (ISO), or they can be custom endorsements drafted by the insurance carrier. Beware of custom
endorsements that may add exclusions or other limitations on coverage
34 2024
Additional Insured Endorsements
• Endorsements show you that the policy was endorsed/modified to add the City as an Additional Insured
• “Additional Insured” means the City is covered by the vendor/contractor’s policy. • It also means that the vendor’s insurance should pay to defend the City in a claim or suit
35 2024
Additional Insured Endorsements
Endorsements provide the following benefits to the City:
• Claim Investigation - to determine if the City is “liable” (breached its duty of care) • Legal Representation - Attorney to act on the City’s behalf, investigate or answer lawsuit • Insurance policy becomes the City’s insurance policy
• Payment of Damages
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Additional Insured Endorsements
Ongoing operations and completed operations
• Ongoing - Standard Industry form CG2010
• Products and Completed Operations CG2037
 Damage the vendor’s completed faulty work causes to others’ property  Bodily injury the vendor’s completed faulty work causes to someone  Legal bills for a lawsuit alleging either property damage or bodily injury 37 2024
Additional Insured Endorsements;
Specific Endorsement v. Automatic Endorsement
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Automatic Coverage:

Specific Coverage:

City Name Here
Coverage applies where
required by written contract
Additional Insured Coverage in Policy
Sometimes the Additional Insured grant of coverage is included in the policy documents in lieu of an endorsement:
• Issued by carriers to reduce their administrative burden (time is money) • More common with smaller vendors
• Requires you to read the policy to determine if the coverage is adequate • Policies often define multiple parties as additional insureds, and it can be difficult to determine what coverage applies to the City 2024 39
What to Watch for in Additional Insured Endorsements
• Endorsement language can vary, is ever-changing, and
can include limitations and non-standard exclusions.
• Watch for:
 Who Is An Insured - sometimes the additional insureds can be tricky, where the vendor’s broker will need to identify which AI the City would fall under
 If coverage is limited to ongoing operations (CG 20 10) only, or does it also include products-completed operations (CG 20 37) for construction work
 Coverage is limited to only the amount of the insurance limit = Limit of Liability
 Coverage exclusions – for example, in this endorsement a state, government agency, subdivision, or political
subdivision is different than a municipality, and the
municipality is specifically excluded
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Other Potential Endorsements
• Primary and Non-Contributory
• Waiver of Subrogation
 General Liability - May be included in policy language  Automobile Liability - May be included in policy language  Workers Compensation - Policy requires an endorsement • Notice of Cancellation
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Recap
Successful Transfer of Risk Relies on Three Main Actions • A contract agreement that includes an indemnification provision is executed between the two parties (City and Vendor)
The executed contract says Window Washer agrees to indemnify the City. • The contract includes insurance requirements, including additional insured requirements
The executed contract says Window Washer must provide specific insurance, including additional insured endorsement, to the City. • The Vendor provides Certificate of Insurance including the additional insured endorsements naming the City and other endorsements, as proof of insurance
The Vendor provides proof of insurance and endorsements 2024 43
Indemnity language
in contract
Insurance
requirements in
contract
Proof of insurance
• Try to use your City’s agreements instead of the vendor’s agreements or proposal documents
• Watch for mutual indemnification agreements
• Watch for limitations of liability
• Acknowledge bargaining power and “800-pound gorillas” • Transfer risk to the party in most control of the risk factors (this will typically be the hired contractor/vendor/consultant)
Points of Contract Agreements
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• Make sure you have all three elements for each agreement/scope of work.

Executed contract, certificate of insurance and all required policy endorsements • Be thoughtful about waiving insurance requirements. These are business decisions of the City
• Have good recordkeeping processes
• It takes time to get comfortable with this process. You are not an underwriter or broker. There are many details and moving parts. Do your best, feel free to reach out to us for assistance
Points to Recap
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Special Events
Resources
Special Events
47 City Sponsored or Applicant Seeking Permit
If City Sponsored, options for insurance:
• Hub International https://www.hubinternational.com/
• Alliant Broker: Penny DeWitt-Holdren - Email: [email protected] If Applicant Sponsored:
• City Agreement with insurance requirements and indemnity should be signed. • For most events, $1M per occurrence / $2M general aggregate CGL coverage is adequate, but please check to ensure the activity does not warrant higher limits. • Liquor Liability should be required if alcohol is served. 2024
Sedgwick’s
Risk Matrix
49 Sedgwick Risk Matrix
• Categories and limited recommendations of risk
• Language templates
• Ancillary coverages
• Risk assessment tool for contractual risk transfer
2024
QUESTIONS?

THANK YOU

SEDGWICK CRT TRAINING
Risk & Insurance
Sedgwick is happy to offer in-person or remote
trainings on risk and insurance. Participants will
learn about risk management, control, transfer,
insurance and endorsements. The training will
assist Participants in understanding risk and
insurance documents, and how to effectively
allocate risk to the appropriate party.

A PowerPoint will be presented that provides a
discussion of risk factors and how the agreement
and insurance documents work together to
protect the City, using illustrations and examples.

WHO SHOULD ATTEND?
Individuals who have direct or indirect
responsibility for contract preparation,
negotiation or issuance of permits, such as city
managers, contract administrators, department
managers, parks and recreation, public works
supervisors, city engineers, risk managers, city
attorneys, and their staffs.

TOPICS WILL INCLUDE:

Risk & Risk Management
Contractual Risk Transfer
Insurance Coverage
Certificates
Endorsements
Risk Assessment Matrix
Special Events

TRACY BERRY, P&C
Tracy Berry is a Contract Manager for Pooling
with Sedgwick, that provides professional
guidance to municipalities, including cities and
counties, transit authorities and vector control
districts. She regularly conducts trainings
pertaining to contractual risk transfer and
provides risk management consulting services to
members. Tracy has over 30 years of experience
in Risk and Contract Management in commercial
construction domestic and international
environmental engineering.
© 2024 Sedgwick

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