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