Risk management

Bailees' customers insurance

Contractor shall obtain, at contractor’s expense, and keep in effect during the term of this contract, bailees´ customers property insurance covering any and all state property left in the care, custody, or control of the contractor. Coverage shall include valuable papers, including but not limited to microfilm. Coverage shall be written on an occurrence basis. Combined single limit per occurrence shall not be less than $ _______  for each site or location.

Use when state property is being entrusted to and will be under the care, custody and control of the contractor (bailee) such as for storage or servicing.  This can include anything from art to valuable papers to dry cleaning entrusted to the contract. Commercial general liability insurance does not cover this exposure.

Check to ensure that all costs, including extra expenses are included in coverage limits. Check the policy exclusions to ensure that the type of valuable papers you have will be covered. Coverage may or could be a part of IT errors and omissions coverage.

Assess the risks of the particular contract to determine appropriate insurance limits and risk control measures and use the​ Risk Assessment Tool​ to evaluate exposure to loss as the basis for coverage limits. Determine what it would cost to recreate or restore documents. Base this amount on the maximum probable loss that could occur, including the cost of reproduction and research.

To further ensure adequate coverage, ask of the contractor the total value of all property of others entrusted to the contractor at any one time. Request an insurance requirement in an amount equal to this value.