Risk Management staff are available to review insurance requirements, hold harmless agreements, and indemnification language in contracts or agreements.
Contracts commonly impose insurance requirements to cover liability and property loss exposures of the parties. The size and scope of the contract and the potential exposure will dictate the level of insurance coverage required. The suggested minimum is $1,000,000 for all contracts regardless of size. However, if at any time a contract reviewer believes the terms of the contract may require additional coverage then Risk Management should be consulted.
The following types of contract clauses often require modification before the contract can be approved by Risk Management:
- Indemnification or Hold Harmless Provisions
- An indemnification clause obligates one party to compensate the other party for losses or damages (physical injury or monetary) caused by that other party. .
- Waivers of Subrogation or Limits on Recovery
- An agreement between two parties in which one party agrees to waive subrogation rights against another in the event of a loss. The intent of the waiver is to prevent one party's insurer from pursuing subrogation against the other party.
Please refer to the attached matrix for third party requirements and limit recommendations.