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Risk Management Appendix
<br /> Routine*Service Agreements With Sovereign Entities and Political Subdivisions of the State of North Dakota:
<br /> Parties: State—State of North Dakota, its agencies, officers and employees
<br /> Governmental Entity — The Governmental Entity executing the attached document, its agencies, officers and
<br /> employees
<br /> Governments—State and Government Entity, as defined above
<br /> Each party agrees to assume its own liability for any and all claims of any nature including all costs, expenses and attorney's fees
<br /> which may in any manner result from or arise out of this agreement.
<br /> Each party shall secure and keep in force during the term of this agreement, from insurance companies, government self-insurance
<br /> pools or government self-retention funds, authorized to do business in North Dakota,the following insurance coverages:
<br /> 1) Commercial general liability and automobile liability insurance — minimum limits of liability required of the Governmental
<br /> Entity are $250,000 per person and $500,000 per occurrence. The minimum limits of liability required of the State are
<br /> $250,000 per person and$1,000,000 per occurrence.
<br /> 2) Workers compensation insurance meeting all statutory limits.
<br /> 3) The policies and endorsements may not be canceled or modified without thirty (30) days prior written notice to the
<br /> undersigned State representative.
<br /> The State reserves the right to obtain complete, certified copies of all required insurance documents, policies, or
<br /> endorsements at any time.
<br /> Each party that hires subcontractors shall require any non-public subcontractors, prior to commencement of work set out under an
<br /> agreement between that party and the non-public subcontractor,to:
<br /> Defend, indemnify, and hold harmless the Governments, its agencies, officers and employees, from and against claims based on
<br /> the vicarious liability of the Governments or its agents, but not against claims based on the Government's contributory negligence,
<br /> comparative and/or contributory negligence or fault, sole negligence, or intentional misconduct. The legal defense provided by the
<br /> Subcontractor to the Governments under this provision must be free of any conflicts of interest, even if retention of separate legal
<br /> counsel for the Governments is necessary. Subcontractor also agrees to defend, indemnify, and hold the Governments harmless
<br /> for all costs, expenses and attorneys' fees incurred if the Governments prevail in an action against Subcontractor in establishing
<br /> and litigating the indemnification coverage provided herein. This obligation shall continue after the termination of this agreement.
<br /> Subcontractor shall secure and keep in force during the term of this agreement,from insurance companies, government self-
<br /> insurance pools or government self-retention funds authorized to do business in North Dakota: 1)commercial general liability; 2)
<br /> automobile liability; and 3)workers compensation insurance all covering the Subcontractor for any and all claims of any nature
<br /> which may in any manner arise out of or result from this agreement. The minimum limits of liability required are$250,000 per
<br /> person and$1,000,000 per occurrence for commercial general liability and automobile liability coverages, and statutory limits for
<br /> workers compensation. The Governments shall be endorsed on the commercial general liability policy and automobile liability
<br /> policy as additional insureds. Said endorsement shall contain a"Waiver of Subrogation"waiving any right of recovery the insurance
<br /> company may have against the Governments as well as provisions that the policy and/or endorsement may not be canceled or
<br /> modified without thirty(30)days prior written notice to the undersigned representatives of the Governments, and that any attorney
<br /> who represents the State under this policy must first qualify as and be appointed by the North Dakota Attorney General as a Special
<br /> Assistant Attorney General as required under N.D.C.C. Section 54-12-08. Subcontractor's insurance coverage shall be primary
<br /> (i.e., pay first)as respects any insurance, self-insurance or self-retention maintained by the Governments. Any insurance, self-
<br /> insurance or self-retention maintained by the Governments shall be excess of the Contractor's insurance and the Subcontractor's
<br /> insurance and shall not contribute with them. The insolvency or bankruptcy of the insured Subcontractor shall not release the
<br /> insurer from payment under the policy, even when such insolvency or bankruptcy prevents the insured Subcontractor from meeting
<br /> the retention limit under the policy. Any deductible amount or other obligations under the Subcontractor's policy(ies)shall be the
<br /> sole responsibility of the Subcontractor. This insurance may be in policy or policies of insurance, primary and excess, including the
<br /> so-called umbrella or catastrophe form and be placed with insurers rated"A-"or better by A.M. Best Company, Inc. The
<br /> Governments will be indemnified, saved,and held harmless to the full extent of any coverage actually secured by the Subcontractor
<br /> in excess of the minimum requirements set forth above. The Government Entity that hired the Subcontractor shall be held
<br /> responsible for ensuring compliance with the above requirements by all Subcontractors. The Governments reserve the right to
<br /> obtain complete, certified copies of all required insurance documents, policies, or endorsements at any time.
<br /> *See North Dakota Risk Management Manual, section 5.1 for discussion of"unique"and"routine"agreements.
<br /> RM Consulted 2007
<br /> Revised 5-09
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