DCHS contract insurance requirements

Listed below are the Minimum Scope and Minimum Limits of insurance coverage requirements and documentation that must be received before a contract can be signed:

General Liability:

$­­­­­­­­­­­­­­­­­­­1,000,000 per occurrence and $2,000,000 in the aggregate for bodily injury, personal and advertising injury, and property damage. Coverage shall be at least as broad as that afforded under ISO form number CG 00 01 (current edition) or its substantive equivalent. Such insurance shall include coverage for, but not limited to, premises liability, products and completed operations, ongoing operations, and contractual liability. Limits may be satisfied by a single primary policy or by a combination of separate primary and umbrella/excess liability policies, provided that coverage under the latter shall be at least as broad as that afforded under the primary policy and satisfy all other requirements applicable to liability insurance including, but not limited to, additional insured status for the County. If the scope of services involves activities with minors, such coverage shall include, or not exclude, sexual assault and misconduct liability coverage.

Professional Liability, Errors, & Omissions:

$1,000,000 per claim and in the aggregate. In the event that services delivered pursuant to this Contract/Agreement either directly or indirectly involve or require professional services, Professional Liability, Errors, and Omissions coverage shall be provided. “Professional Services”, for the purpose of this Contract/Agreement section, shall mean any services provided by a licensed professional or those services that require professional standards of care.

Cyber Liability / Technology Professional Liability (Errors & Omissions):

For contracts/agreements involving software or technology where data breach or exposure to personal and/or confidential information could impact the County, technology professional liability (errors & omissions)/cyber liability coverage shall be provided at minimum limits of $1,000,000 per claim or occurrence and in the aggregate. Coverage shall include loss resulting from data security/privacy breach, or other unauthorized access or related violations including identity fraud and privacy law violations, denial of service attacks, introduction of virus and malicious code, extortion, dissemination or destruction of electronic data, business interruption, privacy law violations, disclosure of non-public, personal or confidential information, loss of income due to system crashes, breach of contract, and acts by rogue employees. Coverage shall include notification and other expenses incurred in remedying a privacy breach as well as costs to investigate and restore data. 

Automobile Liability:

$1,000,000 combined single limit per accident for bodily injury and property damage.

In the event that services delivered pursuant to this Contract/Agreement involve the transportation of people by Contractor/Consultant personnel in Contractor/Consultant-owned vehicles or non-owned vehicles, the limit shall be no less than $3,000,000 combined single limit per accident for bodily injury and property damage.

Insurance Services Office form number (CA 00 01) covering BUSINESS AUTO COVERAGE, symbol 1 “any auto”, or the appropriate coverage provided by symbols 2, 7, 8, or 9. Limit may be satisfied by a single primary policy or by a combination of separate primary and umbrella/excess liability policies, provided that coverage under the latter shall be at least as broad as that afforded under the primary policy and satisfy all other requirements applicable to liability insurance including, but not limited to, additional insured status for the County.

Workers’ Compensation:

Statutory requirements of the State of residency.

Employers’ Liability or “Stop Gap”:

$1,000,000 each occurrence.

Municipal or state agency provisions: 

If the Contractor is a Municipal Corporation or an agency of the State of Washington or any other Public Agency, and is self-insured for any of the above insurance requirements, a certification of self-insurance shall be attached and be incorporated by reference and shall constitute compliance with this section.

Deductibles and Self-Insured Retentions:

Any deductible and/or self-insured retention of the policies shall not apply to the Contractor’s/Consultant's liability to the County and shall be the sole responsibility of the Contractor/Consultant or its Subcontractor(s)/Subconsultant(s).

Other Insurance Provisions and Requirements:

The insurance coverage(s) required in this Contract/Agreement are to contain, or be endorsed to contain, the following provisions:

1. All Liability Policies except Workers’ Compensation and Professional Liability:
   1. The County, its officers, officials, employees, and agents are to be covered as additional insureds for full coverage and policy limits as respects liability arising out of activities performed by or on behalf of the Contractor/Consultant in connection with this Contract/Agreement. Additional Insured Endorsement(s) shall be included with the Certificate(s) of Insurance; “CG 2010 11/85" or its substantive equivalent is required. The County requires the Endorsement(s) to complete the Contract/Agreement.
   2. Such coverage shall be primary and non-contributory insurance as respects the County, its officers, officials, employees, and agents.
   3. The Contractor's/Consultant’s insurance coverage shall apply separately to each insured against whom a claim is made and/or lawsuit is brought, except with respect to the limits of the insurer's liability.
2. All policies
   1. Coverage shall not be suspended, voided, canceled, or reduced in coverage or in limits until after 30 calendar days prior written notice has been given to the County. 

Acceptability of Insurers:

Insurance coverage is to be placed with insurers with an A.M. Best rating of no less than A: VIII or, if not rated with A.M. Best, with minimum surpluses the equivalent of A.M. Best surplus size VIII.

Professional Liability, Errors and Omissions insurance coverage may be placed with insurers with an A.M. Best rating of B+:VII. Any exception must be approved by the County.

If at any time any of the foregoing policies fail to meet minimum requirements, the Contractor/Consultant shall promptly obtain a new policy, and shall submit evidence of coverage to the County, via the appropriate certificates and endorsements, for review.

Verification of Coverage:

The Contractor/Consultant shall furnish the County certificates of insurance and endorsements evidencing coverage required by this Contract/Agreement. Such certificates and endorsements, and renewals thereof, shall be attached as exhibits to the Contract/Agreement. In the event of a claim, the County reserves the right to require complete, certified copies of all required insurance policies at any time, which may be redacted of confidential and proprietary information.

If the Contractor/Consultant/Contracting Party is a Municipal Corporation or an agency of the State of Washington and is a member of the Washington Cities Insurance Authority (WCIA) or any other self-insurance risk pool through which required coverage is provided, a written acknowledgement/certification of current membership will be attached to the Agreement as Exhibit I and shall satisfy the insurance requirements specified above.

County’s receipt or acceptance of Contractor’s/Consultant’s evidence of insurance without comment or objection, or County’s failure to request certified copies of such insurance does not waive, alter, modify, or invalidate any of the insurance requirements set forth above or, consequently, constitute County’s acceptance of the adequacy of Contractor’s/Consultant’s insurance or preclude or prevent any action by County against Contractor/Consultant for breach of the insurance requirements.

Subcontractors:

Contractor/Consultant shall include all Subcontractors/Subconsultants as insureds under its policies or, alternatively, the Contractor/Consultant must require each of its Subcontractors/Subconsultants to procure and maintain appropriate and reasonable insurance coverage and insurance limits to cover each of the Subcontractor’s/Subconsultant’s liabilities given the Subcontractor’s/Subconsultant’s scope of work and the services being provided herein. To the extent reasonably commercially available, insurance maintained by any Subcontractor/Subconsultant must comply with these requirements, including the requirement that all liability insurance policies (except professional liability and workers compensation) provided by the Subcontractor(s)/Subconsultant(s) must include the County, its officers, officials, agents, and employees as additional insured for full coverage and policy limits. Contractor/Consultant is obligated to require and verify that each Subcontractor/Subconsultant maintains the required insurance and ensure the County is included as additional insured. Upon request by the County, and within five (5) business days, Contractor/Consultant must provide evidence of each Subcontractor(s) /Subconsultant(s) insurance coverage, including endorsements.

In addition to the minimum requirements listed above, Contractors/Consultants providing services to Community Protection Program Clients shall maintain coverage and limits no less than the following:

General Liability:

$­­­­­­­­­­­­­­­­­­­3,000,000 per occurrence and $3,000,000 in the aggregate for bodily injury, personal and advertising injury, and property damage. Coverage shall be at least as broad as that afforded under ISO form number CG 00 01 (current edition) or its substantive equivalent. Such insurance shall include coverage for, but not limited to, premises liability, products and completed operations, ongoing operations, and contractual liability. Limits may be satisfied by a single primary policy or by a combination of separate primary and umbrella/ excess liability policies, provided that coverage under the latter shall be at least as broad as that afforded under the primary policy and satisfy all other requirements applicable to liability insurance including, but not limited to, additional insured status for the County.

In addition to the minimum requirements listed above, Contractors providing Housing and Community Development services shall maintain the following minimum insurance coverage and limits:

Property Insurance:

Insurance Services Office Form Number CP 00 10 (or its substantive equivalent) providing BUILDING AND PERSONAL PROPERTY COVERAGE and Insurance Services Office form number (CP 10 30) CAUSES OF LOSS - SPECIAL FORM (or project-appropriate equivalent) written on a replacement cost basis, are required.

National Flood Insurance:

The use of CDBG and HOME funds for acquisition or construction purposes in identified flood hazard areas shall be subject to contract agency mandatory purchase of flood insurance as required by Section 102(a) of the Flood Disaster Protection Act of 1973.

Builder's Risk/Installation Floater:

The Contractor shall procure and maintain, at its sole cost and expense, during the life of the Contract/Agreement, or until acceptance of the project by King County, whichever is longer, "All Risk" Builders Risk Insurance at least as broad as ISO form number CP0020 (Builders Risk Coverage Form) with ISO form number CP0030 (Causes of Loss - Special Form) including coverage for collapse, theft, and property in transit. The coverage shall insure for direct physical loss to property of the entire construction project, for one hundred percent of the replacement value thereof, and include coverage for flood, Earth Movement (including earthquake), and owner-furnished equipment (as applicable). The policy shall be endorsed to cover the interests, as they may appear, of King County, Owner, Contractor and subcontractors of all tiers with King County listed as a Named Insured. In the event of a loss to any or all of the work and/or materials therein and/or to be provided at any time prior to the final close-out of the Contract and acceptance of the project by King County, the Contractor shall promptly reconstruct, repair, replace, or restore all work and/or materials so damaged or destroyed. Nothing herein provided for shall in any way excuse the Contractor or its surety from the obligation of furnishing all the required materials and completing the work in full compliance with the terms of the Contract. The policy shall include a waiver of subrogation in favor of the County.

Contractor’s Pollution Liability

For work involving the introduction, potential release, or exacerbation of hazardous materials or pollutants, Contractor shall provide Contractor’s Pollution Liability coverage in the amount of $1,000,000 per occurrence or claim and in the annual aggregate to cover sudden and non-sudden bodily injury and/or property damage to include the destruction of tangible property, loss of use, cleanup costs, and the loss of use of tangible property that has not been physically injured or destroyed. Coverage shall include non-owned disposal sites. If asbestos, lead, or PCBs are a potential exposure, such insurance shall not exclude pollution arising out of Asbestos, Lead, and/or PCB operations.

Minimum Limits of Insurance for HCD Projects:

Prior to commencement of building construction and until construction is complete and approved, the Contractor shall cause its construction contractor and related professionals to procure and maintain insurance against claims for injuries to persons or damages to property which may arise from, or in connection with, the activities related to this Contract. The Contractor and County shall be named as additional insured for full coverage and policy limits on liability policies (except Workers Compensation and Professional Liability) and as Named Insureds on Builders Risk policies. The cost of such insurance shall be paid by the Contractor and/or any of the Subcontractors. The Contractor shall maintain, or shall cause its Subcontractors to maintain, limits no less than the following:

• Commercial General Liability: $1,000,000 per occurrence for bodily injury, personal injury, and property damage and $2,000,000 in the aggregate.
• Automobile Liability: $1,000,000 combined single limit per accident for bodily injury and property damage.
• Professional Liability, Errors & Omissions: $1,000,000 per claim and in the aggregate. Please note that this coverage is required only in the event that services delivered pursuant to this contract/agreement either directly or indirectly involve or require professional services.
• Builder's Risk Insurance: One hundred percent replacement cost value.
• Contractor’s Pollution Liability: $1,000,000 per occurrence or claim and in the aggregate; required only when the scope of work involves the introduction, potential release, or exacerbation of hazardous materials or pollutants.
• Workers Compensation: Statutory requirements of the state of residency.
• Employers’ Liability or “Stop Gap”: $1,000,000 each occurrence.

Property Coverage Policies:

The County shall be added to all Property Coverage Policies as a Loss Payee as its interests may appear.

In addition to the minimum requirements listed above, Contractors providing mental health outpatient treatment or non-treatment services shall maintain limits no less than the following:

General Liability:

$­­­­­­­­­­­­­­­­­­­3,000,000 per occurrence and $3,000,000 in the aggregate for bodily injury, personal and advertising injury, and property damage. Coverage shall be at least as broad as that afforded under ISO form number CG 00 01 (current edition) or its substantive equivalent. Such insurance shall include coverage for, but not limited to, premises liability, products and completed operations, ongoing operations, and contractual liability. Limits may be satisfied by a single primary policy or by a combination of separate primary and umbrella/excess liability policies, provided that coverage under the latter shall be at least as broad as that afforded under the primary policy and satisfy all other requirements applicable to liability insurance including, but not limited to, additional insured status for the County.

Professional Liability, Errors, & Omissions:

$3,000,000 per claim and in the aggregate. In the event that services delivered pursuant to this Contract/Agreement either directly or indirectly involve or require professional services, Professional Liability, Errors, and Omissions coverage shall be provided. “Professional Services”, for the purpose of this Contract/Agreement section, shall mean any services provided by a licensed professional or those services that require professional standards of care.

Cyber Liability / Technology Professional Liability (Errors and Omissions): 

For contracts/agreements involving software or technology where data breach or exposure of personal and/or confidential information could impact the County, technology professional liability (errors and omissions)/cyber liability coverage shall be provided with minimum limits of $3,000,000 per claim or occurrence and in the aggregate. Coverage shall include loss resulting from data security/privacy breach, or other unauthorized access or related violations including identity fraud and privacy law violations, denial of service attacks, introduction of virus and malicious code, extortion, dissemination or destruction of electronic data, business interruption, privacy law violations, disclosure of non-public, personal, or confidential information, loss of income due to system crashes, breach of contract, and acts by rogue employees. Coverage shall include notification and other expenses incurred in remedying a privacy breach as well as costs to investigate and restore data.

In addition to the minimum requirements listed above, Contractors providing mental health inpatient services, shall maintain limits no less than the following:

General Liability:

$­­­­­­­­­­­­­­­­­­­5,000,000 per occurrence and $5,000,000 in the aggregate for bodily injury, personal and advertising injury, and property damage. Coverage shall be at least as broad as that afforded under ISO form number CG 00 01 (current edition) or its substantive equivalent. Such insurance shall include coverage for, but not limited to, premises liability, products and completed operations, ongoing operations, and contractual liability. Limits may be satisfied by a single primary policy or by a combination of separate primary and umbrella/excess liability policies, provided that coverage under the latter shall be at least as broad as that afforded under the primary policy and satisfy all other requirements applicable to liability insurance including, but not limited to, additional insured status for the County.

Professional Liability, Errors, & Omissions

$3,000,000 per claim and in the aggregate. In the event that services delivered pursuant to this Contract/Agreement either directly or indirectly involve or require professional services, Professional Liability, Errors, and Omissions coverage shall be provided. “Professional Services,” for the purpose of this Contract/Agreement section, shall mean any services provided by a licensed professional or those services that require professional standards of care.

Cyber Liability / Technology Professional Liability (Errors and Omissions):

For contracts/agreements involving software or technology where data breach or exposure of personal and/or confidential information could impact the County, technology professional liability (errors and omissions)/cyber liability coverage shall be provided with minimum limits of $3,000,000 per claim or occurrence and in the aggregate. Coverage shall include loss resulting from data security/privacy breach, or other unauthorized access or related violations including identity fraud and privacy law violations, denial of service attacks, introduction of virus and malicious code, extortion, dissemination or destruction of electronic data, business interruption, privacy law violations, disclosure of non-public, personal or confidential information, identity fraud, loss of income due to system crashes, breach of contract, and acts by rogue employees. Coverage shall include notification and other expenses incurred in remedying a privacy breach as well as costs to investigate and restore data.