Liability Insurance
We prefer contracts clauses that state that both the corporation and the District are responsible for obtaining appropriate insurance coverage and for paying the costs associated with litigation.Often a corporation will ask the District to purchase general liability insurance and name the corporation as a named insured as part of a contract. In the past, the District did not buy this type of insurance and many older contracts state that the District does not purchase general liability insurance. This statement should not be put in contracts any longer, as the District does purchase this insurance.
Do not agree to name a corporation as an additional insured without reviewing the contract clause with the Director of Risk Management. Remember:
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Naming an entity as a "named insured" permits them to file claims with our liability carrier.
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The District insurance coverage contains an aggregate cap, with claims made by an additional insured party counted as part of the annual aggregate cap. Once this cap is exceeded, the District has no coverage.
