Evidence of Coverage Contract Information

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CARLSBAD Omni La Costa Resort • Carlsbad 30th Annual California JPIA
Risk Management Educational Forum

Limited Protected Contract, Type 1 and Type 2

Limited Protected Contract means a written agreement, contract or permit in which:

  1. The Member assumes the Tort Liability of another to pay damages because of Bodily Injury or Property Damage to a third party in one of the following:

    1. Easements or License Agreements;
    2. Leases of Real or Personal Property;
    3. Encroachment Permits;
    4. Special Events Sponsored by the Member; or
    5. Use of Facilities, Equipment, real or personal property by the Member

  2. The Member assumes the Tort Liability of another to pay damages because of Bodily Injury or Property Damage to a third party for an activity not named in paragraph A. directly above, and upon its review of the agreement, Authority staff has determined at its sole discretion that any risks assumed in the agreement do not significantly increase the Member’s risk exposure, and an Evidence of Coverage letter has been issued by the Authority; or

  3. The Member is obligated to provide evidence of coverage for a third party to participate in a funding program administered by another government or evidence of coverage required by bond indentures entered into by the Member if Authority staff has determined in its sole discretion that any risks assumed in the agreement do not significantly increase the Member’s risk exposure, and an Evidence of Coverage letter has been issued by the Authority;

and which is entered into prior to the Bodily Injury or Property Damage for which a Claim is made.

A Limited Protected Contract does not include any part of any contract or agreement that indemnifies any person or organization for injury or damages caused by the sole negligence of such person or organization, or that cannot be included in a Protected Contract.

A Limited Protected Contract also does not include any part of a contract or agreement that indemnifies the owner or operator of a Railroad.

Protected Contractanchor

Protected Contract means a written agreement that satisfies all of the following:

  1. The agreement pertains to the Member’s operations and by the contract terms the Member assumes the Tort Liability of another to pay damages because of Bodily Injury or Property Damage to a third person or organization;

  2. The agreement is entered into prior to the Bodily Injury or Property Damage for which a Claim is made; and

  3. The agreement, including its value, is reported by the Member and approved by the Authority through issuance of an evidence of coverage letter prior to the Bodily Injury or Property Damage and the value is added to the Member’s annual payroll for use in any retrospective deposit or annual contribution computation.

A Protected Contract may cover an architect, engineer, or surveyor for his or her role as a Public Official, except for the application of paragraphs B.(i) and B.(ii) below. Protected Contracts may apply to contract public works directors, building officials, planning directors, city managers, Chief Executives, city attorneys, city prosecutors, redevelopment directors, or other contracted Public Officials for occurrences arising out of their official duties, but this coverage applies only to the named contract Public Official and does not extend to other individuals within the contractor’s firm.

A Protected Contract does not include any part of any contract or agreement:

  1. That indemnifies any person or organization for injury or damages caused by or arising out of the ownership, operation, maintenance or use of any Aircraft, Airport or Watercraft;

  2. That indemnifies an architect, engineer, or surveyor. This exclusion does not apply in the instance where an individual is under an exclusive contract as a contract Public Official solely for the benefit of the Member (i.e., no work is performed by the person for any other person or entity), for injury or damage arising out of:

    1. Preparing, approving, or failing to prepare or approve maps, drawings, opinions, reports, surveys, change orders, designs or specifications; or
    2. Giving or failing to give directions or instructions, if that is the primary cause of the injury or damage;

  3. Under which the Protected Party, if an architect, engineer, or surveyor, assumes liability for injury or damage arising out of the Protected Party’s rendering or failing to render professional services, including those listed in B. above and supervisory, inspection, or engineering services;

  4. or That indemnifies any person or organization for damages by fire, explosion, or water damage to premises rented or loaned to the Member.

California JPIA