1.Determine desired insurance requirements by contract type. Construction contracts and those for professional services or special events, for example, will have differences in the types of insurance that are needed. A few different standard requirement templates will be adequate to address most contracts. The templates will detail all coverage types, limits, and special policy provisions that are required.
2.Address any special or unique risks. Some contracts will inherently present greater exposure to frequent losses or potentially severe losses, such as those with large crowd exposures, hazardous materials, or significant construction. Those contracts involving access to sensitive data or information also present unique risks. A risk assessment checklist and limits matrix will help determine when to require additional types of insurance or higher limits.
3.Provide insurance requirements as soon as possible. It is important that other parties are aware of the insurance requirements of the county early so that they can adequately obtain the required coverage and account for any potential increased costs. It is a best practice to include the requirements in a Request For Proposal or other solicitation process, reducing negotiation time and increasing compliance once the contract has been awarded.
4.Obtain certificates of insurance and verify. Use a certificate checklist to easily help determine that the coverages, named insured, insurance carrier, and policy effective dates are adequate. It is important to obtain recently issued certificates prior to starting work, and it is recommended to receive the certificates directly from an authorized insurance representative to ensure authenticity. Updated certificates should be obtained at appropriate intervals such as semi-annually throughout each contract for proactive certificate management. Reserve the right to obtain full copies of the policy and/or endorsements to verify coverage is as described on the certificate of insurance.
ACCG
http://www.accg.org/