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<br />fM/J
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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 Daköta, 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 covering the Governments for any and all claims of any nature which may in any manner arise out of or result
<br />from this agreement:
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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
<br />of 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 Sovereign Entity or Political Subdivision shall furnish certificates evidencing the requirements in 1 through 3
<br />above to the undersigned State representative prior to commencement of this agreement. The State reserves the
<br />right to obtain complete, certified copies of all required insurance documents, policies, or 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 />und~r an agreement between that party and the non-public subcontractor, to:
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<br />Indemnify, save, and hold harmless the Governments from any and all claims of any nature, including costs, expenses,
<br />and attorney's fees which may in any manner arise out of or result from acts or omissions in awarding this grant or
<br />performing work or activities under the contract, except for claims arising out of the Governments' sole negligence.
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<br />Subcontractor shall secure and keep in force during the term of this agreement, from insurance companies, government
<br />self-insurance pools or government self-retention funds authorized to do business in North Dakota: 1) commercial
<br />general liability; 2) automobile liability; and 3) workers compensation insurance all covering the Subcontractor for any
<br />and all claims of any nature which may in any manner arise out of or result from this agreement. The minimum limits of
<br />liability required are $250,000 per person and $1,000,000 per occurrence for commercial general liability and
<br />automobile liability coverages, and statutory limits for workers compensation. The Governments shall be endorsed on
<br />the commercial general liability policy and automobile liability policy as additional insureds. Said endorsement shall
<br />contain a 'Waiver of Subrogation" waiving any right of recovery the insurance company may have against the
<br />Governments as well as provisions that the policy and/or endorsement may not be canceled or modified without thirty
<br />(30) days prior written notice to the undersigned representatives of the Governments, and that any attorney who
<br />represents the State under this policy must first qualify as and be appointed by the North Dakota Attomey General as a
<br />Special Assistant Attorney General as required under N.D.C.C, Section 54-12-08. Subcontractor's insurance coverage
<br />shall be primary (Le., pay first) as respects any insurance, self-insurance or self-retention maintained by the
<br />Governments. Any insurance, self-insurance or self-retention maintained by the Governments shall be excess of the
<br />Contractor's insurance and the Subcontractor's insurance and shall not contribute with them, Any deductible amount or
<br />other obligations under the Subcontractor's policy(ies) shall be the sole responsibility of the Subcontractor. This
<br />insurance may be in policy or policies of insurance, primary and excess, including the so-called umbrella or catastrophe
<br />form and be placed with insurers rated "A" or better by AM. Best Company, Inc. The Governments will be indemnified,
<br />saved, and held harmless to the full extent of any coverage actually secured by the Subcontractor in excess of the
<br />minimum requirements set forth above, The Government Entity that hired the Subcontractor shall be held responsible
<br />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.
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<br />.See North Dakota Risk Management Manual, section 5.1 for discussion of "unique" and "routine" agreements.
<br />AM Consulted 1997
<br />Revised 5-03
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