Insurance for Coordinated Transportation Provider-Owned Vehicles

The following outlines the minimum required insurance limits for all Primary Transportation Providers.[1] The Prime Contractor must secure the appropriate coverage limits as outlined below or by combining, specific liability coverage and an umbrella coverage to achieve the required DOAS recommendations. [2]

Any contracted vendor who utilizes their vehicles to transport individuals must secure their own insurance coverage in accordance with the guidelines. Insurance limits, as stated, are the minimum liability coverages for Primary Contractors. It is the responsibility of Primary Contractors to set standards and verify insurance liability coverages for all Subcontractors.

The State requires that all policies must contain a provision that coverage afforded under the policies shall not be canceled, changed, allowed to lapse, or allowed to expire until thirty (30) calendar days after written notice has been given to the certificate holder on the certificate of insurance. All such coverage shall remain in full force and effect during the initial term of the agreement and any renewal or extension thereof.

For contractors operating privately owned vehicles, all policies must be issued by an insurance company licensed to do business in the State of Georgia with a minimum A.M. Best Rating Services rating of A- and signed by an authorized agent. Contractors will provide proof of their A.M. Best rating to the Regional Transportation Office (RTO) by providing a copy of their Certificate of Insurance and a printout of their insurance company’s rating from www.ambest.com/home/default.aspx. The rating will be validated by the RTO on an annual basis and/or during the contract renewal process.

INSURANCE

Contractors must adhere to insurance requirements throughout the duration of the contract. Contractors must procure and maintain insurance that must protect both the Prime Contractor and the Department of Human Services from any claims for bodily injury, property damage, or personal injury that may arise out of operations under the Contract. Contractor shall procure the insurance policies at its own expense and shall furnish the Department an insurance certificate of the coverage required in this section listing the Department as certificate holder. In addition, the insurance certificate must provide the name and address of the insured, name, address, telephone number and signature of the authorized agent; the name of the insurance company (licensed to operate in Georgia); a description of the coverage in detailed standard terminology (including policy period and limits of liability); and an acknowledgment that notice of cancellation is required to be given to the Department. Contractor is required to obtain and maintain the following types of insurance coverage for the duration of the Contract:

INSURANCE FOR PROVIDERS WHO OWNED/OPERATE VEHICLES

  1. Workers Compensation Insurance (Occurrence) in the amounts of the statutory limits established by the General Assembly of the State of Georgia in Title 34, Chapter 9 of the O.C.G.A. (A self-insurer must submit a certificate from the Georgia Board of Workers Compensation stating that Contractor qualifies to pay its own workers compensation claims). Contractor shall require all subcontractors that are required by statute to hold workers compensation insurance and that occupy the premises or perform work under this Contract to obtain an insurance certificate showing proof of Workers Compensation Coverage.

  2. Commercial General Liability Policy (Occurrence) to include contractual liability. $1 million per occurrence/$2 million dollar aggregate policy limits.

  3. Business Auto Policy (Occurrence) to include but not be limited to liability coverage on any owned, non-owned and hired vehicle used by Contractor or Contractor’s personnel in the performance of this Contract. For vehicles with a seating capacity of 15 or less: $3 million dollar combined single limit. For vehicles with a seating capacity greater than 15: $5 million dollar combined single limit.

  4. Commercial Umbrella Policy (Occurrence). $2 million dollar limit. An umbrella policy may cover the aggregate policy limits required herein. There must be no gap between the $1 million and $2 million dollar policy limits and the umbrella policy must follow the form of the underlying $1 million primary policy.

The Contractor’s policy containing coverage amounts with higher limits than stated above will satisfy the requirements of this paragraph.

The foregoing policies shall contain a provision that coverage afforded under the policies will not be canceled, or not renewed or allowed to lapse for any reason until at least 10 days prior written notice has been given to the Department. Certificates of Insurance showing such coverage to be in force shall be filed with the Department prior to commencement of any work under this Contract. The foregoing policies shall be obtained from insurance companies licensed to do business in Georgia and shall be with companies acceptable to the Department. All such coverage shall remain in full force and effect during the initial term of the Contract and any renewal or extension thereof. At all times, coverage shall be within limits acceptable to the Department.

INSURANCE FOR PUBLIC ENTITIES/PUBLIC ENTITIES PARTICIPATING IN SELF- INSURANCE PROGRAMS

  1. Contractor shall, at its sole cost and expense, obtain, and during the entire term of this Contract, maintain, in full force and effect, the insurance coverage described in this Paragraph, protecting the Contractor and the Department, to the fullest extent allowed by law and up to the required limits, against any claims for damages, including but not limited to, bodily injury, damage to or destruction of property, or personal injury, arising out of the operations under the Contract.

  2. Contractor shall secure such insurance coverage either: (a) from an insurance carrier or carriers licensed to conduct business in the State of Georgia and having an A.M. Best Company rating of A-, Class VII or better, unless specific approval has been granted by the Department; (b) through a self-funded Risk Management Plan pursuant to O.C.G.A. § 45-9- 21, et seq.; or (c) any combination thereof. Specifically, Contractor shall provide the minimum acceptable limits of liability as follows:

    1. Workers Compensation and Employer’s Liability (Occurrence) in the amounts of the statutory limits established by the General Assembly of the State of Georgia in Title 34, Chapter 9 of the O.C.G.A. (A self-insurer shall submit to the Department a certificate from the Georgia Board of Workers Compensation stating that Contractor qualifies to pay its own workers compensation claims). Contractors shall require all subcontractors that are required by statute to hold workers compensation insurance and that occupy the premises or perform work under this Contract to obtain an insurance certificate showing proof of Workers Compensation Coverage.

    2. Commercial General Liability (Occurrence) to include contractual liability. Contractors shall self-fund all general liability losses up to $2,000,000. Any losses which exceed the self-funded amount will be covered by Excess liability coverage.

    3. Business Automobile Liability, in accordance with O.C.G.A. § 33-24-51 and in the amounts of the statutory limits established under O.C.G.A. § 36-92-2, to include, but not be limited to liability coverages of owned, non-owned, and vehicle used by Contractors. Contractors who do not own vehicles that are operated by their personnel should notify their Regional Transportation Office and obtain guidance.

    4. Excess Liability (Commercial Umbrella Insurance) (Occurrence). Contractors shall self-fund the $2,000,000 self-insured retention (SIR) amount.

1. TSS requires the minimum limits of liabilities stated above; this matches the recommended minimum limits of liabilities suggested by the Department of Administrative Services (DOAS).
2. For example: If appropriate limits are $2 million per occurrence and $2 million aggregate, acceptable coverage would include a specific policy covering $1 million per occurrence and $1 million aggregate written with an umbrella policy for an additional $1 million.