Liability & Insurance

Template 14

Use Template 14 for:

Special events and short-term rentals of County facilities or property where a permit has been issued, including:

  • Marathons, Bike Races, Fairs, Festivals, Film, Photography, etc.

Mandatory Contractual Language

Insurance requirements should be saved and attached to the contract as an exhibit. To ensure the requirements are included as part of your contract, please include the following language within the insurance section of the agreement:

_______ is required to maintain the insurance specified in Exhibit _____, which is attached hereto and incorporated herein by this reference.

Consistent Language

Edit the template to keep the language consistent with your agreement.

For example: if the template refers to: “Consultant”, but the agreement uses “Contractor”, change all references in the template to “Contractor”. If your agency is not the County (SCAPOSD, Water Agency, Fairgrounds, etc.) substitute the correct terminology for all references to “County”. If the agreement is called “contract”, “license”, “lease”, etc., edit the template to match.

Download Template

Template Assistant

Permittee shall maintain and require all subcontractors, agents, vendors, suppliers and exhibitors to maintain similar insurance unless such insurance has been expressly waived by the attachment of a Waiver of Insurance Requirements.

The named insured must match the name of the Permittee. Some policies have several named insureds, but all insureds may not show on the certificate. If there’s no match on the certificate, request a copy of the endorsement showing the full named insured, including the Permittee.

County reserves the right to review any and all of the required insurance policies and/or endorsements, but has no obligation to do so. Failure to demand evidence of full compliance with the insurance requirements set forth in this Permit or failure to identify any insurance deficiency shall not relieve Permittee from, nor be construed or deemed a waiver of, its obligation to maintain the required insurance at all times during the term of this Permit or any extensions of the terms.

The Permittee must satisfy all the insurance requirements. Our failure to identify deficiencies does not constitute a waiver of the requirements.

  1. Workers Compensation and Employers Liability Insurance
    1. Required if Permittee has employees.
    2. Workers Compensation insurance with statutory limits as required by the Labor Code of the State of California.
      Under California’s Labor code, if the party with whom we are contracting is a privately held corporation whose only employees are its sole shareholders, workers compensation insurance is not required. Similarly, if the party with whom we are contracting is a partnership or limited liability company with no employees other than its general partners or managers, workers compensation insurance is not required. A waiver is not needed.
    3. Employers Liability with minimum limits of $1,000,000 per Accident; $1,000,000 Disease per employee; $1,000,000 Disease per policy.
    4. Required Evidence of Insurance:
      1. Certificate of Insurance

    If Permittee currently has no employees, Permittee agrees to obtain the above-specified Workers Compensation and Employers Liability insurance should any employees be engaged during the term of this Permit or any extensions of the term.

    If the Permittee has no employees, Workers Compensation insurance is not required. The Permittee is obligated to obtain the insurance if employees are hired after the inception of the agreement. A Risk Management waiver is not needed if the Permittee has no employees. To verify that the Permittee has no employees, Risk Management recommends that you have the Permittee sign the Workers Compensation Declaration (Word: 25 KB).

  2. General Liability Insurance
    1. Commercial General Liability Insurance on a standard occurrence form, no less broad than Insurance Services Office (ISO) form CG 00 01.

      ISO (Insurance Services Office) publishes a standard CGL. Some insurers use that specific form; others use their own form with a different numbering system. Any CGL is acceptable as long as the coverage is as broad as the ISO form.

      An occurrence policy responds if the injury or damage takes place during the policy period. It doesn’t matter when the claim is filed. A claims-made policy responds if the claim (demand for money) is made during the policy period.

    2. Minimum Limits: $1,000,000 per Occurrence; $2,000,000 General Aggregate; $2,000,000 Products/Completed Operations Aggregate. The required limits may be provided by a combination of General Liability Insurance and Commercial Excess or Commercial Umbrella Liability Insurance. If Permittee maintains higher limits than the specified minimum limits, County requires and shall be entitled to coverage for the higher limits maintained by Permittee.

      Occurrence limit: the most the insurer will pay for any one accident.

      General Aggregate: the most the company will pay for all claims resulting from damage or injuries that occur before the work is completed, regardless of the number of accidents, injuries, claims or claimants.

      Products/Completed Operations Aggregate: the most the insurer will pay for all claims resulting from damage or injuries that occur after the work is completed, regardless of the number of accidents, injuries, claims or claimants.

      A Commercial Umbrella or Excess Liability policy provides additional limits which are usually shown on the Certificate of Insurance. The additional limits are added to the General Liability Limits. The combined total of the Excess or General Liability Limits and the Umbrella Limits must equal or exceed our minimum requirements.

      Some special events policies have only an occurrence limit with no aggregates. This is acceptable.

      Department Waiver: You may waive the requirement for Products/Completed operations coverage if food or other tangible items (souvenirs, toys, tee-shirts, arts & crafts, household items, etc.) will not be sold or distributed at the event.

    3. Any deductible or self-insured retention shall be shown on the Certificate of Insurance. If the deductible or self-insured retention exceeds $25,000 it must be approved in advance by County. Permittee is responsible for any deductible or self-insured retention and shall fund it upon County’s written request, regardless of whether Permittee has a claim against the insurance or is named as a party in any action involving the County.

      Contact Risk Management (Outlook: 139 kB) if the retention or deductible exceeds $25,000.

      We want to verify that the party with whom we are contracting has sufficient assets to fund a large retention or deductible. If the policy has a self-insured retention, the insurance does not apply until after the named insured has paid the retention. This language obligates the Permittee to pay the retention if there is a claim.

      There is no specific field on the Certificate of Insurance for a General Liability deductible or retention.

    4. [insert exact name of additional insured] shall be endorsed as additional insureds for liability arising out of the Permittee’s ongoing operations. (Acceptable endorsements: ISO endorsement CG 20 26, ISO endorsement 20 12 or equivalents. Unacceptable endorsements: ISO endorsement CG 20 11 or any endorsement linking additional insured status to leased premises.)

      We must get a copy of the endorsement or section of the policy that makes us an additional insured. A statement on the Certificate of Insurance is not sufficient because an insurance company is bound by its policy and endorsements, not by the Certificate.

      Additional insured endorsements which do not include our name are acceptable if they have language granting additional insured status to parties for whom our vendor (or consultant, contractor, permittee, licensee, tenant, etc.) is required to provide additional insured status under a contract or agreement. Submit a HelpRequest (Outlook: 139 kB) if you’re not sure the endorsement is acceptable.

      ISO endorsement CG 20 26 covers the County for liability arising out of the Permittee’s ongoing operations or liability arising from premises rented to the Permittee.

      Endorsement CG 20 12 covers the County for liability arising out of the Permittee’s operations for which we have issued a permit or authorization.

      Not acceptableCG 20 10: "additional insured…but only with respect to liability…in the performance of your ongoing operations for the additional insured(s)." With this language we are not an additional insured because the Permittee is not doing any work for us.

    5. The insurance provided to the additional insureds shall be primary to, and non-contributory with, any insurance or self-insurance program maintained by them.

      Because the County is an additional insured on the Permittee’s policy, we want that policy to cover claims before any contribution from County’s CSAC protection or its self-insured retention.

      Some insurers refuse to add " primary & non-contributory" language. In this situation, you may accept the insurance anyway. Why? Because California Government Code Section 990.8 states that a public agency’s self-insurance and/or participation in a risk sharing pool (CSAC) does not qualify as insurance. Legally, County has no insurance. The coverage provided to County as an additional insured on the Permittee’s policy is the only insurance we have. By default it is primary and non-contributory. It is preferable to have the insurer provide the required language, but not mandatory.

      Marinas & Airport: Because County has commercial insurance for the Marinas & Airport, we require evidence of primary and non-contributory coverage for all contracts relating to those facilities.

      We must get a copy of the endorsement or section of the policy that has the Primary & Non-Contributory language. A statement on the Certificate of Insurance is not sufficient because an insurance company is bound by its policy and endorsements, not by the Certificate.

    6. The policy shall cover inter-insured suits between County and Permittee and include a "separation of insureds" or "severability" clause which treats each insured separately.

      This guarantees that the County will be covered if it is sued by the Permittee and that the Permittee will be covered if it is sued by the County. This language is standard in the General Liability policy; you do not need to get a specific endorsement to satisfy this requirement.

    7. Required Evidence of Insurance:
      1. Copy of the additional insured endorsement or policy language granting additional insured status; and
      2. Certificate of Insurance

      Note: For events taking place at airports and/or marinas, additional evidence of coverage is required.

      This refers to evidence that the coverage is primary & non-contributory as noted above.

  3. Automobile Liability Insurance

    (Required if permittee owns autos or if autos will be used in the activity or event.)

    1. Minimum Limit: $1,000,000 combined single limit per accident. The required limit may be satisfied by a combination of Automobile Liability Insurance and either Commercial Excess or Commercial Umbrella Liability Insurance.
      A Commercial Umbrella or Excess Liability policy provides additional limits which are usually shown on the Certificate of Insurance. The additional limits are added to the Auto Liability Limits. The combined total of the Auto Liability Limits and the Excess or Umbrella Limits must equal or exceed our minimum requirements.
    2. Coverage shall cover all owned autos. (Required if Permittee owns vehicles.)
    3. Coverage shall cover all hired and non-owned vehicles. (Required if vehicles are used in the event.)

      Hired Autos: vehicles the Permittee rents or borrows.

      Non-owned Autos: vehicles owned or operated by the Permittee’s employees, subcontractors, agents, vendors, suppliers or exhibitors.

      If "Any Auto" is checked on the Certificate of Insurance, it includes owned, hired and non-owned autos.

      This coverage is not required if vehicles are used only for driving to and from the event. It is required if vehicle use is part of the event. Examples: a parade with floats; a bicycle race with sag wagons, etc.

    4. Required Evidence of Insurance: Certificate of Insurance
  4. Liquor Liability Insurance

    (Required if alcohol will be available at the event.)

    This insures those who sell or serve alcohol professionally for injuries caused by an intoxicated person to whom they have provided alcohol. Liquor liability insurance may be in the name of either the Permittee or the Permittee’s caterer.

    1. Minimum Limits: $1,000,000 for each Common Cause or Occurrence; $1,000,000 Aggregate.

      A common cause is all injury or damage resulting from providing alcohol to any one person.

      Some insurers do not provide separate liquor liability limits; instead, they delete the liquor liability exclusion from the General Liability policy. In that situation the General Liability limits include liquor liability claims. This is acceptable.

    2. Any deductible or self-insured retention shall be shown on the Certificate of Insurance. If the deductible or self-insured retention exceeds $25,000 it must be approved in advance by County. Permittee is responsible for any deductible or self-insured retention.

      Contact Risk Management (Outlook: 139 kB) if the retention or deductible exceeds $25,000. We want to verify that the party with whom we are contracting has sufficient assets to fund a large retention or deductible.

      There is no specific field on the Certificate of Insurance for a General Liability deductible or retention.

    3. Required Evidence of Insurance: Certificate of Insurance
  5. Watercraft Liability Insurance

    (Required if permittee's activities include the use of watercraft. Coverage may be provided by an endorsement to the General Liability Policy or by a separate Watercraft Liability Policy.)

    1. Minimum Limits if included in the General Liability Policy: $1,000,000 per occurrence; $2,000,000 General Aggregate.

      The limits in the General Liability policy will apply to watercraft.

    2. Minimum Limits if included in a separate Watercraft Liability Insurance Policy: $1,000,000 per accident.
    3. [insert exact name of additional insured] shall be additional insureds for liability arising out of Permittee’s ownership, maintenance or use of watercraft.
    4. The insurance provided to the additional insureds shall apply on a primary and non-contributory basis with respect to any insurance or self-insurance program maintained by them.
    5. Required Evidence of Insurance:
      1. If coverage is included in the General Liability Policy: endorsement removing the General Liability Policy exclusion for ownership and operation of watercraft, or other evidence that watercraft liability is covered.

        A standard General Liability policy specifically excludes coverage for the ownership, maintenance or use of watercraft owned by or operated by the named insured (the Permittee). We need a copy of the endorsement that overrides this exclusion.

      2. If coverage is provided by a separate Watercraft Liability Policy: additional insured endorsement or policy language granting additional insured status; and
      3. Certificate of Insurance
  6. Aircraft Liability Insurance
    1. Minimum limits: $1,000,000 per accident; $100,000 per passenger.
    2. The County of Sonoma, its officers, agents and employees, shall be additional insureds for liability arising out of Permittee’s operation of aircraft in connection with this Permit.
    3. Required Evidence of Insurance: Certificate of Insurance

      Certificates of Insurance for aviation policies may be acceptable evidence of additional insured status. They are often signed by the insurer, not the broker, and bind the company to the terms stated on the certificate.

      Contact Risk Management (Outlook: 139 kB) if you are not sure the evidence of insurance/additional insured is acceptable.

  7. Professional Liability Insurance

    (Required from any entity or its medical support suppliers, if medical or ambulance services are available to participants or spectators.)

    1. $1,000,000 per medical incident; $1,000,000 Aggregate.
    2. Required Evidence of Insurance: Certificate of Insurance
  8. Standards for Insurance Companies

    Insurers, other than the California State Compensation Insurance Fund, shall have an A.M. Best’s rating of at least A:VII.

    A.M. Best is one of the services that reviews insurers’ financial information. We want the insurer to be able to pay its claims. The letter (A+, A, A-, B+, etc.) is Best’s rating of financial strength. The number (XII, VII, etc.) refers to the insurer’s financial size. You can check the rating at: http://www.ambest.com/ - the service is free, but you need to register and log in.

    Department Waiver: You may waive the A.M. Best’s rating if an insurer’s rating is below A:VII.

  9. Documentation
    1. The Certificate of Insurance must include the following reference: [insert event name and date].

      Putting the event name and date the Certificate of Insurance does not increase County’s protection. This requirement is included for your convenience.

    2. All required Evidence of Insurance shall be submitted with the completed permit application.
    3. The name and address for Additional Insured endorsements and Certificates of Insurance is: [insert exact name and address].

Contact Information

Jamie Bloom, Insurance Manager

Reesha Ruel, Liability Manager

Risk Management Division

Human Resources Department

Business Hours
Monday – Friday
8:00 AM – 5:00 PM
Contact us by Phone
Address
575 Administration Drive
Room 116 B
Santa Rosa, CA 95403
38.465237, -122.725363

Contracts Exempt from Insurance

Certain contracts pose low risk, therefore, they are exempt from insurance requirements.

Learn more