Why Insurance is Important
Insurance plays a vital role when doing business with County of Los Angeles. It safeguards all involved parties against unforeseen events, providing both peace of mind and financial protection. While specific requirements may vary depending on the products or services a vendor offers to the County of LA, the following general requirements typically apply to contracts.
Key Insurance Requirements
SAM, Sexual Abuse and Molestation Insurance: Sexual Misconduct Liability Coverage should be required when the Agreement work involves care or supervision of children, seniors and other vulnerable persons. This may include services such as child care, foster care, group homes, emergency shelters, medical
and/or mental health care service delivery, residential treatment, mentoring, schools, camp operations, school bus transport, and security services. Coverage for sexual abuse and molestation actual or alleged claims for with limits of not less than $2 million per claim and $2 million aggregate, and claims for negligent employment, investigation, supervision, training or retention of, or failure to report to proper authorities, a person(s) who committed any act of abuse, molestation, harassment, mistreatment or maltreatment of a sexual nature.
General liability Insurance shall be at least as broad as Insurance Services office General Liability Coverage (Occurrence Form CG 0001). The County of Los Angeles, its Special Districts, Elected Officials, Officers, Agents, Employees and Volunteers (collectively County and its Agents) shall be provided additional insured status under Contractor’s General Liability policy with respect to liability arising out of Contractor’s ongoing and completed operations performed on behalf of the County. County and its Agents additional insured status shall apply with respect to liability and defense of suits arising out of the Contractor’s acts or
omissions, whether such liability is attributable to the Contractor or to the County. The full policy limits and scope of protection also shall apply to the County and its Agents as an additional insured, even if they exceed the
County’s minimum Required Insurance specifications herein. Use of an automatic additional insured endorsement form is acceptable providing it satisfies the Required Insurance provisions herein. Applicable limits: General Aggregate: $2 million; Products/Completed Operations Aggregate: $1 million
Personal and Advertising Injury: $1 million; Each Occurrence: $1 million.- Automobile liability insurance Automobile Liability insurance (providing scope of coverage equivalent to ISO policy form CA 00 01) with limits of not less than $1 million for bodily injury and property damage, in
combined or equivalent split limits, for each single accident.
Insurance shall cover liability arising out of Contractor’s use
of autos pursuant to your Agreement, including owned, leased, hired, and/or non-owned autos, as each may be applicable. - Professional liability – Insurance covering Contractor’s liability arising from or related to your Agreement, with limits of not less than $1 million per claim and $2 million aggregate. Further, Contractor understands and agrees it shall maintain such coverage for a period of not less than three (3) years following this Agreement’s expiration, termination or cancellation.
- Worker’s compensation and Employer’s Liability Insurance: Workers Compensation and Employers’ Liability insurance or qualified self-insurance satisfying statutory requirements, which includes Employers’ Liability coverage with limits of not less than $1 million per accident. If Contractor will provide leased employees, or, is an employee leasing or
temporary staffing firm or a professional employer organization (PEO), coverage also shall include an Alternate Employer Endorsement (providing scope of coverage equivalent to ISO policy form WC 00 03 01 A) naming the County as the Alternate Employer, and the endorsement form shall be modified to provide that County will receive not less than thirty (30) days advance written notice of cancellation of this coverage provision. If applicable to Contractor’s operations, coverage also shall be arranged to
satisfy the requirements of any federal workers or workmen’s compensation law or any federal occupational disease law. - Technology Errors & Omissions Insurance: Insurance for liabilities arising from errors, omissions, or negligent acts in rendering or failing to render
computer or information technology services and technology products. Coverage for violation of software copyright should be included. Technology services should at a minimum include (1) systems analysis; (2) systems programming; (3) data processing; (4) systems integration; (5) outsourcing including outsourcing development and design; (6) systems design, consulting, development and modification; (7) training services relating to computer software or hardware; (8) management, repair and
maintenance of computer products, networks and systems; (9) marketing, selling, servicing, distributing, installing and maintaining computer hardware or software; (10) data entry, modification, verification,
maintenance, storage, retrieval or preparation of data output, and any other services provided by the vendor with limits of not less than $10 million. - Privacy/Network Security (Cyber) Liability Insurance coverage providing protection against liability for (1) privacy breaches [liability arising from the loss or disclosure of confidential information no matter how it occurs]; (2) system breach; (3) denial or loss of service; (4) introduction, implantation, or spread of malicious software code; (5) unauthorized access to or use of computer systems with limits of not less than $2 million. No exclusion/restriction for unencrypted portable devices/media may be on the policy.
- Waivers of Subrogation: To the fullest extent permitted by law, the Contractor
hereby waives its rights and its insurer(s)’ rights of recovery against County under all the Required Insurance for any loss arising from or relating to your Agreement. The Contractor shall require its insurers to execute any waiver of subrogation endorsements which may be necessary to effect such waiver. - All insurance carriers must demonstrate A.M. Best financial strength rating (FSR) of A- or better.
- Certificate of insurance coverage satisfactory to County, and a copy of an Additional Insured endorsement confirming County and its Agents (defined below) has been given Insured status under the Contractor’s General Liability policy, shall be delivered to County at the address shown below and
provided prior to commencing services under your Agreement. - Renewal Certificates shall be provided to County not less than 10 days prior to Contractor’s policy expiration dates. The County reserves the right to obtain
complete, certified copies of any required Contractor and/or Sub-Contractor insurance policies at any time. - Neither the County’s failure to obtain, nor the County’s receipt of, or failure to object to a non-complying insurance certificate or endorsement, or any other insurance documentation or information provided by the Contractor, its insurance broker(s) and/or insurer(s), shall be construed as a waiver of any of the Required Insurance provisions.
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Certificates and copies of any required endorsements shall be sent to:
County of Los Angeles
Department of Mental HealthContracts Development & Administration Division
550 S. Vermont Avenue, Room 500
Los Angeles, CA 90020
### Disclaimer
The information provided in this post is intended for general informational purposes only and is subject to change. It is the responsibility of each vendor, independent teacher, contractor, and business to ensure that the insurance requirements are current and valid. We strongly recommend contacting the County of Los Angeles directly to obtain the most recent and accurate list of requirements.
While Paperless Insurance Services has made every effort to verify the accuracy and validity of the information presented, we do not assume any responsibility for any issues or incorrect information that may arise. For the most current and specific insurance requirements, please consult with County of Los Angeles or a qualified insurance professional.