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Risk Control Unit
Contract Decision Making
 
Vendor Contract Risk Transfer and Insurance

The Risk Control Unit’s (RCU) core responsibility is to assist agencies to protect state-owned assets and minimize loss to the state’s self insurance fund. The state´s self-insurance fund does not cover contractual liability. RCU has limited availability to handle questions regarding risk transfer and commercial insurance requirements for vendor contracts.
 
If you have questions about risk transfer or insurance coverage in a contract, here are the steps to take before you call Risk Management:
  • Call your agency Contract or Purchasing Manager. These staff members have special training and can likely handle all of your questions.
  • Review any prior contracts that are similar in nature to the current issue. We find that most questions have been answered before and are already in agency records.
  • Conduct additional research, as needed regarding insurance, risk assessment and risk management. Research Tips are available to assist you in this endeavor.
  • Review the Smart Contracting Toolkit and make adequate efforts to locate needed information.
    • If, after adequate efforts, you do not find the answer to your question there, or want to have additional discussion about the materials or tools, ask your agency contract manager to call a Risk Management Consultant.
    • Smart Contracting Toolkit – On-line risk toolkit covering non-insurance risk transfer information; standardized insurance clauses; insurance recommendations by contract type; supplementary insurance clauses; information on bond types and applications; and additional insurance related resource information.
  • Conduct an adequate Risk Assessment.
    • We will ask you to send us a completed risk assessment. You will likely need to involve agency program managers in the risk assessment process unless you are familiar with the activities or work to be done in the contract.
    • Risk Assessment Road Map Toolkit – On-line risk toolkit to assess activity and contract related risks. Assists the user in making risk adjusted business decisions that protect the state’s best interests. 
Contract risk transfer and insurance business decisions are the primary responsibility of agency contract staff. Risk Management is able to provide technical assistance only on emerging or unusual risks in vendor contracts. 
 
Note: Risk Management must review and agree to any contract that extends the state's liability coverage to a contractor.
 
If you still need to call Risk Management,
  • Get the information to us as early as possible.
    • We need at least 7 working days. Within that timeframe we will let you know if we can assist you, or if we will direct you to other resources.
    • Tell us how this is a new or unusual contract for your agency.
    • Send us your Risk Assessment.
    • To help us improve the Smart Contracting Toolkit, tell us how you used it to try to answer your questions. 
Is Your Agency a Vendor of Services to a Non-State Entity?
  • Contact Risk Management if your agency has been asked to provide a  Certificate of Insurance as proof of state insurance coverage.
  • Risk Management insures its risk of loss through a combination of self-insurance and commercial policies.