CA License #2607296
THIRD PARTY CLAIMS ADMINISTRATION CONTRACT
THIS AGREEMENT, entered into effective JUNE 30, 2022 by and between CITY OF SALINAS, hereinafter called the "PRINCIPAL," and CARL WARREN & COMPANY , LLC , hereinafter called "CONTRACTOR," is for certain services as outlined in connection with the duties and responsibilities of administering a program of self-insurance.
W I T N E S S E T H
WHEREAS, PRINCIPAL has undertaken to administer the entitled matters and is in need of a qualified third party to whom to delegate the responsibilities and duties of administering said partially or totally funded program, and
WHEREAS, CONTRACTOR is engaged in the supervision and administration of programs for commercial general liability self-insurance,
NOW, THEREFORE, PRINCIPAL and CONTRACTOR mutually understand and agree as follows:
1. GENERAL
CONTRACTOR shall:
(a) Supervise and administer the self-insurance program for PRINCIPAL:
(b) Represent the PRINCIPAL in all matters related to the investigation, adjustment, processing, supervision, and resolution of liability claims for money damages asserted by third parties against the PRINCIPAL (and other participants in the program as specified); and
(c) Provide to PRINCIPAL during the Term (as defined below) all the services more particularly set forth hereinafter.
2. INVESTIGATIVE SERVICES
CONTRACTOR shall provide complete investigative and analytical services including, but not limited to:
(a) Receipt and examination of all reports of accidents, incidents, claims or cases which are or may be the subject of such claims reported by PRINCIPAL to CONTRACTOR and;
(b) The investigation of such accidents, incidents, claims or cases where examination warrants such investigation or when requested by PRINCIPAL, such investigation to include on -site investigation, photographs, interviewing of witnesses,
CA License #2607296
determination of losses and other such investigative services necessary to determine liability and loss.
3. SETTLEMENT AUTHORITY
CONTRACTOR shall promptly provide PRINCIPAL written notice of any claim which CONTRACTOR reasonably expects to result in a total settlement payment exceeding the settlement authority limit agreed upon by the Parties (the “ Authority Limit”), excluding PRINCIPAL’s payments to CONTRACTOR for CONTRACTOR’s scope of services, and other costs and expenses agreed by the Parties to be reasonably related to CONTRACTOR’s services to PRINCIPAL. The Payment Guidelines incorporated into this Agreem ent are binding once this Agreement is executed by the Parties. The Payment Guidelines may be adjusted during the Term by mutual agreement of the Parties. Each mutually agreed upon revision of the Payment Guidelines, when executed by both Parties, shall be binding, and incorporated into this Agreement, superseding any antecedent versions of the Payment Guidelines.
Contractor Settlement Authority: $ per suffix.
4. CLAIMS ADJUSTMENT SERVICES
CONTRACTOR shall provide complete claims adjustment services on each accident or incident that may be the subject of a claim against the PRINCIPAL which is r eported to CONTRACTOR by the PRINCIPAL. Such services shall include, but not be limited to:
(a) the maintenance of a claim file on each potential or actual claim reported to CONTRACTOR;
(b) whenever its investigation results in a determination that PRINCIPAL has sustained a liability to a third party, CONTRACTOR shall process any such claim or potential claim for settlement in accordance with the PRINCIPAL'S instructions for settlement of such claims, as set forth in the Payment Guidelines; and (c) obtaining all release agreements or proofs of loss on settlement of any claim or potential claim. If subrogation is pursued, the rates in Section 9 will apply unless a separate contingency fee agreement is agreed to by PRINCIPAL and CONTRACTOR.
5. ADMINISTRATIVE SERVICES
CONTRACTOR shall provide the following administrative services:
(a) Assignment of a Principal Account Adjuster to the PRINCIPAL; (b) Providing PRINCIPAL with electronic access to all reported claims during the term of this Agreement, indicating the status of each reported open claim assigned to CONTRACTOR, the details of each such claim, the outstanding reserves for each claim and details of all claim payments; and
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(c) Periodic review and adjusting of reserves on all open claims. Account specific reports and attendance at meetings (including round trip travel) shall be provided by CONTRACTOR at the rates provided in Section 9 under ancillary services.
6. LEGAL SUPPORT SERVICES
CONTRACTOR shall provide the following legal support services on each claim wherein the claimant has commenced litigation:
(a) Upon notification by PRINCIPAL that litigation has been filed on an open claim, CONTRACTOR shall notify PRINCIPAL and, in accordance with PRINCIPA L’S instructions, the PRINCIPAL'S excess insurance carrier and/or excess reporting authority, pool or group (the “excess entity”) and/or trial attorney assigned by PRINCIPAL to handle the case and provide such excess entity and/or trial attorney with all information and files concerning claim;
(b) Maintain liaison with PRINCIPAL'S excess entity and/or trial attorney and provide such investigation services as are required by such attorney during pre- trial and trial stages; and
(c) Assist PRINCIPAL'S excess entity and/or trial attorney with discovery and other legal processes.
7. SUBROGATION SERVICES
If the Fee Schedule in Section 9 shows that CONTRACTOR will be providing subrogation services, CONTRACTOR shall: Supervise and administer the subrogation program for PRINCIPAL, represent PRINCIPAL in all matters related to the investigation, collecting processing, supervision and resolution of subrogation claims, against third parties, for damage to PRINCIPAL’S property. This Agreement does not include recovery of damages or cost relating to Workers Compensation Claims, presented by PRINCIPAL’S employees.
CONTRACTOR shall provide complete collection services to PRINCIPAL, including receipt and examination of all reports of accident, incidents, claims or cases which are or may be the subject of a subrogation claim. The investigation of such accidents, incidents, claims or cases will include determining responsibility, establishing damage amount, pursuing collection, negotiating settlements and processing of monetary recovery.
8. TERM OF AGREEMENT
The term of the Agreement (the “Term”) shall commence on JUNE 30, 2022 and continue until JUNE 29, 2025, unless terminated earlier as provided in Section 13 herein.
CA License #2607296
9. PRICING
PRINCIPAL agrees to pay the following claim handling and service fees for CONTRACTOR’S services:
CLAIMS ADMINISTRATION
SERVICES
FIXED ANNUAL PRICING
INITIAL CONTRACT
2022 - 2025
OPTION 1
2025 - 2028
OPTION 2
2028 - 2031
Fixed Annual Rate $143,789.96 $150,930 $162,288
Incident Report/Record Only Included Included Included
Take Over Claims Included - -
Telephone
Included Included Included
Copy Work
Stenographs
Postage
Office Expense
Claims Set-Up Fee
Data Processing
Index Bureau (ISO Claims Search
and OFAC)
MMSEA Filing Fee (liability claims)
Misc./Allocated Loss Adjustment
Expenses (i.e., police reports,
medical records, etc.)
At Cost At Cost At Cost
Field Work Services
General Liability Adjuster Services $90 per hour $96 per hour $100 per hour Mileage IRS Rate IRS Rate IRS Rate
Photographs/Duplicate
Photographs Included Included Included
Ancillary Services
Subrogation Setup Fee (one-time
charge) Included Included Included
Subrogation (if utilized) 18% of net
recovery
18% of net
recovery
18% of net
recovery
Outside Investigations
At Cost At Cost At Cost Auto/Property Damage
Appraisals
Surveillance/Fraud Unit
Annual Administration Services
• Data Management
• Account Management
• Annual Stewardship
• Claims Review
Included Included Included
Risk Management Information System Services
• Setup (First Year)
• Training/Technical Support
• 3 Users RMIS Access
• Standard Loss Runs
• Report Programming
• Carrier TPA Oversight (Data
Extract, Feeds, Audits,
Compliance & Reporting)
Included Included Included
Data Intake of Existing Claims (one-
time charge in first year) included - -
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Additional Users (over first 5 users) $250/user per year $250/user per year $250/user per year Custom Report Development (2+
hours) $250 per hour $250 per hour $250 per hour
Other IT Services (Exit, Final
Termination etc.) $250 per hour $250 per hour $250 per hour Banking/Trust Account Services
Trust Account Maintenance
Included Included Included Check Issuance & Reconciliations 1099 Reporting, including IRS File (if
requested)
CONTRACTOR has the right to revise this fee schedule at no more frequently than one (1) year intervals. CONTRACTOR will provide a minimum of thirty (30) days prior notice of any such revision to the fee schedule to PRINCIPAL, which notice shall state the effective date of the revised fee schedule. Unless PRINCIPAL exercises its right to terminate this Agreement pursuant to Section 13(a) prior to the effective date of the revised fee schedule, such revised fee schedule shall govern for the remainder of the Term (or until further adjusted pursuant to this Section 9). If PRINCIPAL does exercise its right to terminate this Agreement pursuant to Section 9 during the period between receipt of any such revised fee schedule and the effective date of such revised fee schedule, the existing fee schedule (and not the revised schedule) shall govern for the remainder of the Term.
The above fee schedule for the services does not include “Allocated Expenses”, defined to mean customary and usual costs and expenses incur red and/or paid by CONTRACTOR on PRINCIPAL’S behalf in connection with the investigation, adjustment, settlement or defense of a claim. Such costs and expenses include, but are not limited to, professional photography, police reports, independent medical examinations, professional engineering services, laboratory services, bulk copy jobs, private investigators, legal costs and fees and work performed by accountants. CONTRACTOR shall charge PRINCIPAL for non-staff investigators or adjusters when, in the opinion of CONTRACTOR, such assistance is necessary and reasonably related to the monetary exposure. Allocated Expenses do not include the fees payable to CONTRACTOR pursuant to the fee schedule in this Section 9, nor the salaries, wages or benefits paid to CONTRACTOR’S employees or office and other overhead expenses associated with the performance of the services hereunder by CONTRACTOR. PRINCIPAL agrees to pay for the cost of all reasonable and supportable Allocated Expenses incurred in connection with the services under this Agreement.
Charges for non -file-related professional services performed at the specific request of PRINCIPAL will be billed on an as quoted basis.
10. DATA PROCESSING
a. The following standard services are included in these services provided pursuant to this Agreement - claims data electronically for up to five recipients and access to FileHandler Enterprise for up to five users. For security purposes, access to FileHandler Enterprise and any subscriptions will automatically terminate at the end of twelve (12)
CA License #2607296
months. PRINCIPAL shall be responsible for notifying CONTRACTOR to renew user subscriptions and access or to substitute users.
b. Additional users or recipients shall be charged on a per person basis at an annual fee of $250.
c. Special reports, new reports and data feeds can also be requested. They are subject to a cost per quote at a rate per project or per hour once the scope has been agreed upon. CONTRACTOR does not possess any interest, title, lien or right to any client data or records. Therefore, upon termination of the contract, CONTRACTOR is relieved of all obligations to provide data processing services to PRINCIPAL and will deliver to PRINCIPAL all data and records in a readily available excel or PDF format. If a different format is desired by PRINCIPAL, CONTRACTOR will provide it to PRINCIPAL at an agreed upon and reasonable cost and timeline.
11. PRINCIPAL'S RESPONSIBILITIES
PRINCIPAL shall provide CONTRACTOR with copies of all relevant documents upon request and withou t charge and shall make available any PRINCIPAL employee for interviews by CONTRACTOR at reasonable times concerning any investigation of a claim or incident pursuant to this Agreement.
CONTRACTOR shall bill PRINCIPAL and furnish PRINCIPAL with invoices for services rendered in accordance with the fee schedule set forth in the Agreement. Each invoice will include the claim or other matters for which a fee is being charged and the amount of the associated fee for that claim or matter. All sums due hereunder shall be paid by delivery of PRINCIPAL’S check, or wire transfer to CONTRACTOR’S offices located at the address set forth herein, within thirty (30) days fo llowing the invoice date. If any amount invoiced is in dispute, PRINCIPAL shall pay the undisputed amount and notify CONTRACTOR within thirty (30) days after the invoice date of the disputed portion; failure by PRINCIPAL to deliver written notice to CONTRACTOR of dispute with regard to any portion of an invoice within such time frame shall be deemed acceptance of the entire invoice by PRINCIPAL. Fees not paid in full within thirty (30) days of the invoice date (excluding any good faith disputed amount for which PRINCIPAL has delivered a written notice of dispute in accordance with this Section 11), at CONTRACTOR’S option, will be subject to per annum interest at the lower of (i) 18% or (ii) the maximum interest rate permitted by applicable law, calculated from the due date to the date payment is received by CONTRACTOR. For invoices not paid in full within thirty (30) days of the invoice date, CONTRACTOR will notify PRINCIPAL of such failure to pay and if PRINCIPAL does not cure such failure in full (exclud ing any good faith disputed amount for which PRINCIPAL has delivered a written notice of dispute in accordance with this Section 11) within ten (10) business days after the date of such notice (the “cure period”), CONTRACTOR may, without waiving any other rights or remedies to which it may be entitled, as of the first business day following the cure period, immediately limit access to data, suspend and/or terminate this Agreement, and/or seek collection of all amounts due, including by sending outstanding invoices to a collection agency. PRINCIPAL will reimburse any costs and expenses (including, but not limited to, the fees of a collection
CA License #2607296
service and reasonable attorneys’ fees) incurred by CONTRACTOR to collect any amount that is not paid when due.
12. CONFLICT OF INTEREST
In the event a claim or incident is reported to CONTRACTOR by PRINCIPAL and it is determined that the actual or potential claimants therein are also clients of CONTRACTOR, then CONTRACTOR shall immediately notify PRINCIPAL of such po tential conflict of interest so PRINCIPAL may have the option to choose an independent investigator and adjuster.
13. CANCELLATION OF AGREEMENT
a. Voluntary Termination . This Agreement may be terminated at any time by either party, without cause, by giving the other party not less than sixty (60) days prior written notice of such termination.
b. T ermination for Cause . This Agreement shall terminate at the election of PRINCIPAL or CONTRACTOR if the other party breaches any material provision of this Agreement and fails to cure such breach within ten (10) business days after written notice thereof is given to the party, or in the event the breach is not capable of being cured within such ten (10) business day period, the breaching party has not commenced good faith efforts to cure such default within ten (10) business days and continued thereafter in good faith to diligently pursue the completion of such cure. Failure of PRINCIPAL to comply with Section 11PRINCIPAL’S RESPONSIBILITIES shall qualify as cause under this Section.
c. T ermination by CONTRACTOR. CONTRACTOR may terminate this Agreement pursuant to Section 17(f).
14. DISPOSITION OF FILES ON TERMINATION OF AGREEMENT
a. All files on each claim shall be property of the PRINCIPAL. b. In the event of expiration of t he Agreement, non- renewal thereof, or cancellation, CONTRACTOR shall bill the PRINCIPAL, subject to the rates quoted in Section 9 herein above, for work completed by CONTRACTOR on each claim. Upon receipt of payment of outstanding invoices (including those in Section 14(c) below) , CONTRACTOR shall promptly forward all completed and pending claim files to the PRINCIPAL unless PRINCIPAL requests CONTRACTOR to continue to process any files on a time and expense basis as provided for in the CONTRACTOR'S Rate Manual at the time such services are rendered.
c. PRINCIPAL agrees to pay CONTRACTOR for the internal and/or e xternal cost of retaining, storing, retrieving, logging, packing, and shipping files which are stored on or off premises by CONTRACTOR.
15. HOLD HARMLESS
a. PRINCIPAL’S Indemnification Obligation. PRINCIPAL agrees it will indemnify, defend and hold harmless CONTRACTOR and its affiliates, and their respective officers,
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directors, employees, agents, attorneys, shareholders, and their successors and assigns (collectively “CONTRACTOR Indemnity”), from and against any loss, claim, damage, cost or expense, including but not limited to reasonable attorney’s fees and costs, that such CONTRACTOR Indemnity may incur arising out of, in connection with, or in any way related to the performance of CONTRACTOR’S duties and obligations under this Agreement except claims solely resulting from or arising out of:
(i) acts of CONTRACTOR performed in bad faith or failures to act occurring as a result of CONTRACTOR’S negligence resulting in a breach of CONTRACTOR’S duties and obligations under this Agreement; or
(ii) acts of CONTRACTOR which exceed the authority granted to it by PRINCIPAL under this Agreement; or
(iii) acts or failures to act of CONTRACTOR which are not in compliance with lawful written instructions issued by PRINCIPAL to CONTRACTOR provided such instructions are consistent with the scope, objectives and terms of this Agreement.
b. CONTRACTOR’S INDEMNIFICA TION OBLIGATION. CONTRACTOR agrees it will indemnify, defend and hold harmless PRINCIPAL and its respective affiliates, and their respective officers, directors, employees, agents, attorneys, shareholders, and their successors and assigns (collectively “P RINCIPAL Indemnity”), from and against any loss, claim, damage, cost or expense, including but not limited to reasonable attorney’s fees and costs, that such PRINCIPAL Indemnity may incur solely resulting from or arising out of:
(i) acts of CONTRACTOR performed in bad faith or failures to act occurring as a result of CONTRACTOR’S negligence resulting in a breach of CONTRACTOR’S duties and obligations under this Agreement; or
(ii) acts of CONTRACTOR which exceed the authority granted to it by PRINCIPAL under this Agreement; or
(iii) acts or failures to act of CONTRACTOR which are not in compliance with lawful written instructions issued by PRINCIPAL to CONTRACTOR provided such instructions are consistent with the scope, objectives, and terms of this Agreement.
c. Limitations on CONTRACTOR’s Indemnity Obligations. CONTRACTOR’S indemnification obligations set forth in this Agreement shall apply only to the extent such obligations solely relate to or solely arise in connection with claims serviced by CONTRACTOR during the Term and under the scope of this Agreement.
d. Survival of Obligations. The obligations of the parties set forth in this Section 15 shall survive termination of this Agreement.
CA License #2607296
16. AUDITS
The CONTRACTOR’S files shall be made available for audits at any time upon reasonable notice. Reasonable notice shall be defined as thirty (30) days or as otherwise agreed by the parties. If special retrieval or shipment of the requested files is necessary, PRINCIPAL shall reimburse CONTRACTOR at cost. The CONTRACTOR reserves the right to reject an auditor proposed by PRINCIPAL if the proposed auditor may gain an unfair competitive advantage over CONTRACTOR by conducting such an audit.
17. MISCELLANEOUS
a. Governing Law. This Agreement shall be construed and enforced in accordance with and governed by the laws of the State of California.
b. Am endments, etc. Neither this Agreement nor any of the terms hereof may be amended, changed, waived, discharged or terminated except by an instrument in writing signed by both of the parties hereto.
c. N
o Waiver . No delay on the part of any party hereto in exercising any right, power or privilege hereunder shall operate as a waiver thereof; nor shall any waiver on the part of any party hereto of any such right, power or privilege, or any single or partial exercise of any such right, power or privilege, preclude any further exercise thereof or the exercise of any other right, power or privilege.
d. S
everability . If any part of this Agreement is contrary to, prohibited by or deemed invalid under, any applicable law of any jurisdiction, then such provision shall, as to such jurisdiction, be inapplicable and deemed omitted to the extent so contrary, prohibited or invalid, without invalidating the remainder hereof or affecting the validity or enforceability of such provision in any other jurisdiction. e. In dependent Contractor . At all times during the term of this Agreement, CONTRACTOR shall be deemed to be an independent contractor to PRINCIPAL acting in the capacity as PRINCIPAL’S agent subject to the limited authority granted herein. Nothing contained in this Agreement shall be deemed to create the relationship of employer and employee, partners, or joint ventures between PRINCIPAL and CONTRACTOR. CONTRACTOR shall not act as an insurer, nor shall it be ultimately financially responsible for payment or satisfaction of Claims or causes of action against PRINCIPAL.
f. Cu
rrent Law & Regulation . This Agreement is entered into with the understanding that existing Federal, State, or other jurisdictional regulations will remain in effect for the duration of this Agreement. PRINCIPAL agrees that should administrative or other costs of service provided hereunder be substantially increased as a result of modi fications in existing law, enactment of new legislation, or promulgation of new administrative guidelines, CONTRACTOR service fees may be renegoti ated during the Agreement term. If revised fee agreements cannot be reached, CONTRACTOR may terminate this Agreement, at its option, after thirty (30) days written notice to PRINCIPAL. g. C
ounterparts . This Agreement may be executed simultaneously in two counterparts, each of which when so executed and delivered shall be deemed an original, but both of which together shall constitute one and the same instrument, and all
CA License #2607296
signatures need not appear on any one counterpart. A facsimile, telecopy or other reproduction of this Agreement may be executed by any party and delivered by such party by facsimile or other electronic transmission (including e -mail), and s uch execution and delivery shall be considered valid, binding and effective for all purposes.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be signed by their duly authorized representatives as of the day and year first written above.
(CONTRACTOR) (PRINCIPAL)
CARL WARREN & COMPANY, LLC
Company Name
City of Salinas
Client
Signature
Signature
Richard McAbee
Print Name
Print Name
Chief Marketing Officer
Title
Title
Date
Date
ANY ALTERATIONS TO THIS CONTRACT WILL RENDER THE CONTRACT NULL AND VOID. THE PRICING QUOTED IN THIS CONTRACT WILL REMAIN EFFECTIVE FOR THIRTY (30) DAYS FROM
THE INCEPTION DATE LISTED ON THIS CONTRACT AFTER WHICH TIME THE CONTRACT WILL BE RECINDED.
CA License #2607296
EXHIBIT A
INSURANCE REQUIREMENTS
Consultant shall procure and maintain for the duration of the Agreement insurance against claims for injuries to persons or damage to property which may arise from or in connection with the performance of the work hereunder and the results of that work by the Consultant, his agents, representatives, employees , or subcontractors. With respect to General Liability and Professional Liability, coverage should be maintained for a minimum of five (5) years after Agreement completion.
MINIMUM SCOPE AND LIMIT OF INSURANCE
Coverage shall be at least as broad as:
(A) Commercial General Liability (“CGL”): Insuranc e Services Office Form (“ISO”) CG 00 01 covering CGL on an occurrence basis, including products and completed operations, property damage, bodily injury, and personal & advertising injury with limits no less than $1,000,000 per occurrence. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this project/location (ISO CG 25 03 or 25 04) or the general aggregate limit shall be twice the required occurrence limit. (B) Automobile Liability: ISO Form CA 0001 covering any auto, or if Consultant has no owned autos, hired and non -owned, with limit s no les s than $1,000,000 per accident for bodily injury and property damage. (C) Workers’ Compensation insurance as required by the State of California, with Statutory Limits, and Employer’s Liability Insurance with a limit of no less than $1,000,000 per accident for bodily injury or disease. (D) Professional Liability (also known as Errors and Omissions) insurance appropriate to the work being performed, with limits no less than $1,000,000 per occurrence or claim, $2,000,000 aggregate per policy period of one year.
If the Consultant maintains broader coverage and/or higher limits than the minimums shown above, the City of Salinas requires and shall be entitled to the broader coverage and/or higher limits maintained by the Consultant. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City.
OTHER INSURANCE PROVISIONS
The insurance policies are to contain, or be endorsed to contain, the following provisions:
Additional Insured Status
The City of Salinas, its officers, officials, employees, and volunteers are to be covered as additional insureds on the CGL policy with respect to liability arising out of work or
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operations performed by or on behalf of the Consultant including materials, parts , or equipment furnished in connection with such work or operations. General liability coverage can be provided in the form of an endorsement to the Consultant’s insurance (at least as broad as ISO Form CG 20 10 , CG 11 85, or both CG 20 10, CG 20 26, CG 20 33, or CG 20 38; and CG 20 37 forms if later revisions used).
Primary Coverage
For any claims related to this Agreement or the project described within this Agreement, the Consultant’s insurance coverage shall be primary coverage at least as broad as ISO Form CG 20 01 04 13 as respects the City, its officers, officials, employees, and volunteers.
Any insurance or self-insurance maintained by the City , its officers, officials, employees, or volunteers shall be excess of the Consultant’s insurance and shall not contribute with it.
Notice of Cancellation
Each insurance policy required above shall provide that coverage shall not be canceled, except with notice to the City.
Waiver of Subrogation
Consultant hereby grants to City a waiver of any right to subrogation which any insurer of said Consultant may acquire against the City by virtue of the payment of any loss under such insurance. Consultant agrees to obtain any endorsement that may be necessary to affect this waiver of su brogation, but this provision applies regardless of whether or not the City has received a waiver of subrogation endorsement from the insurer.
The Workers’ Compensation policy shall be endorsed with a waiver of subrogation in favor of the City of Salinas for all work performed by the Consultant , its employees, agents, and subcontractors.
Self-Insured Retentions
Self-insured retentions must be declared by Consultant to and approved by the City. At the option of the City, Consultant shall provide coverage t o reduce or eliminate such self-insured retentions as respects the City, its officers, officials, employees, and volunteers; or the consultant shall provide evidence satisfactory to the City guaranteeing payment of losses and related investigations, claim administrations, and defense expenses. The policy language shall provide, or be endorsed to provide, that the self - insured retention may be satisfied by either the named insured or City.
Acceptability of Insurers
Insurance is to be placed with insurers with a current A.M. Best’s rating of no less than A:VII, unless otherwise acceptable to the City.
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Claims Made Policies
If any of the required policies provide coverage on a claims-made basis:
1. The Retroactive Date must be shown and must be before the date of th is Agreement or the beginning of Agreement work.
2. Insurance must be maintained and evidence of insurance must be provided for at least five (5) years after completion of the Agreement of work.
3. If coverage is c anceled or non-renewed, and not replaced with another claims-made policy form with a Retroactive Dat e prior to the Agreement effective date, the Consultant must purchase “extended reporting” coverage for a minimum of five (5) years after completion of Agre ement work.
4. A copy of the claims reporting requirements must be submitted to the City for review.
Verification of Coverage
Consultant shall furnish the City with original certificates and amendatory endorsements or copies of the applicable insurance language effecting coverage required by this Agreement. All certificates and endorsements are to be received and approved by the City before work commences. However, failure to obtain the required documents prior to the work beginning shall not waive the Consultant’s obligation to provide them. The City reserves the right to require complete, certified copies of all required insurance policies, including endorsements required by these specifications, at any time.
Subcontractors
Consultant shall require and verify that all sub -consultants and/or subcontractors maintain insurance meeting all the requirements stated herein , and Consultant shall ensure that Entity is an additional insured on insurance required from such sub-consultants and/or subcontractors.
Special Risks or Circumstances
City reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances.
Maintenance of Insurance
Maintenance of insurance by Consultant as specified shal l in no way be interpreted as relieving Consultant of its indemnification obligations or any responsibility whatsoever and the Consultant may carry, at its own expense, such additional insurance as it deems necessary.
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(CONTRACTOR) (PRINCIPAL)
CARL WARREN & COMPANY, LLC
Company Name
City of Salinas
Client
Signature
Signature
Richard McAbee
Print Name
Print Name
Chief Marketing Officer
Title
Title
Date
Date