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Contractor Insurance Monitoring

By Richard Powell,2014-05-13 00:04
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Contractor Insurance Monitoring

     Department of Children and Family Services

    Policy and Procedure Guide

    Division No: 1 Administration Effective Date:

    October 26, 2007 Chapter No: 4 Contracts

    Item No: 3 Vendor/Contract Insurance Monitoring

POLICY: Required vendor insurance certificates shall be retained for those

    Agreements entered into by the County on behalf of the

    Department. For multi-department agreements, the responsibility

    for insurance certificate retention is delegated to the ‘Lead”

    department.

PURPOSE: To limit County exposure to litigation by ensuring vendor insurance

    requirements are met.

PROCEDURE:

I. RESPONSIBILITIES:

    A. Staff Analysts preparing an Agreement are responsible to confirm

    insurance requirements with the Risk Management Department prior to

    entering into the Agreement and to clarify and negotiate insurance

    requirements with the vendor during contract negotiations.

    B. Once the Agreement is executed, vendors are required to comply with all

    terms and conditions contained therein.

    C. Office Assistants will notify vendors to submit copies of the required

    certificates within 30 days of the contract start date when the Executed

    Agreement is mailed to the vendor.

    D. Staff Analysts are responsible for ensuring copies of the required

    insurance certificates are in the contract file.

    .

    Submitting Party Division/Program

    Manager/ Deputy Director Approval Howard Himes 10/26/07

     Name Date Assistant Director’s Approval

     Name Date Director’s Approval

     Name Date

    Page 1 of 3

    Division 1, Chapter 4 Effective Date:

     October 26, 2007

    Item 3 - Vendor/Contract Insurance Monitoring

E. Office Assistant(s) are responsible for processing and tracking insurance

    certificates.

F. Office Assistant(s) are responsible for keeping contracts data base

    current.

G. Office Assistants are responsible for filing compliant insurance

    certificates in the Agreement files.

    II. FILE MANAGEMENT:

A. When the original insurance document is received in the Department, the

    Office Assistant will check the contract database to determine which Staff

    Analyst is assigned the contract.

    1. The OA will scan the insurance document and;

    2. Place the scanned document on G drive (G:\CFSAdm\DCFS

    Insurance\Certificates).

    3. E-mail the document to the assigned Staff Analyst(s).

     NOTE: Vendors may have multiple Agreements. Insurance

     certificates may need to be approved by more than one analyst for

     different agreements with the same vendor.

B. Within 48 hours of receipt, the Staff Analyst shall print the document and

    verify compliance:

    1. If the insurance is in compliance with the terms of the Agreement,

    highlight (on a hard copy of the insurance document) the type of

    coverage that is in compliance and the expiration date of coverage,

    notate the Agreement number at the top on the document, initial

    and give the hard copy to the OA within 48 hours.

    2. Contact Risk Management if assistance or clarification is needed.

    3. If the insurance is not in compliance, follow-up with appropriate

    correspondence to the Contractor (see 7 below).

C. Office Assistant shall file the original insurance document into an

    "Insurance Binder" in alphabetical order by the insured party's name

    (usually the Contractor's name).

    Page 3 of 3

    Division 1, Chapter 4 Effective Date:

     October 26, 2007

    Item 3 - Vendor/Contract Insurance Monitoring

D. Office Assistant will monthly review the "Insurance Binder" and the G drive

    folder to clear out and dispose of documents that have expired and/or are

    no longer needed.

E. After the OA receives the hard copy of the insurance document from the

    Staff Analyst, the OA will enter insurance information into the contracts

    database.

    1. The database will have 4 insurance categories: Commercial

    General Liability Expiration Date, Automobile Liability

    Expiration Date, Professional Liability Expiration Date, Workers

    Compensation Expiration Date.

    III. TRACKING:

A. The OA will track and send out a "form" letter to the Contractor a minimum

    of 30 days prior to coverage expiration date(s), requesting renewal

    information within 15 days from the date of notice. The OA will either

    notify the Contractor by U.S. mail or via e-mail.

    1. Any renewal information received by the OA will be processed as

    stated in 1 above.

    2. If the OA has not received any renewal information within 15 days

    of noticing, the OA will notify the Staff Analyst.

B. If appropriate insurance documents are not submitted by the Contractor,

    as specified in the agreement, the Staff Analyst must notify the Contractor.

    First notices to the Contractor may be accomplished by U.S. mail or e-mail.

    Second notices shall be sent via U.S. mail.

C. Templates for letters to the Contractor are located on the G drive

    (G:\CFSAdm\DCFS Insurance\Template Letters).

    1. "First Notice"

    2. "Second Notice"

    3. Expiration of coverage notice (to be sent by the OA)

D. If insurance coverage is not in compliance after the first and second

    notices have been submitted to the Contractor, the Staff Analyst will

    discuss this situation with his/her supervisor.

    Page 3 of 3

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