3-Attachment 1.pdf

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Attached to
Drug and Alcohol Testing
Solicitation number
BY26-00029583
Issued by
Dallas County, Texas

About this file

This is an Insurance Requirements document for a Drug and Alcohol Testing service contract with the City of Dallas, Texas Police Department (DPD). The contract is structured as a sixty-month Indefinite Delivery/Indefinite Quantity (ID/IQ) service price agreement to provide controlled substance and alcohol testing services on an as-needed basis. The document outlines the mandatory insurance coverage and related provisions that the contractor must maintain throughout the engagement period and any contract extensions.

The contractor is required to procure and maintain Medical Professional Liability Insurance with minimum limits of $1,000,000 per incident and $1,000,000 annual aggregate, written by State of Texas-approved insurers and acceptable to the City. The City must be named as an additional insured and as the certificate holder, with certificates of insurance delivered to the Dallas Police Department (Attention: Alina Nair, 1500 Marilla St, Dallas, Texas 75201) and the Director of the Office of Risk Management (1500 Marilla, 6A-South, Dallas, Texas 75201). Contractors are permitted to self-insure if they maintain a net worth of at least $100,000,000, with the self-insured retention not exceeding 10% of net worth and subject to City approval. Subcontractors must maintain appropriate insurance coverage for the work performed, with the contractor bearing full responsibility for monitoring and enforcing subcontractor insurance compliance. The contractor assumes all deductibles and self-insured retentions and remains fully liable regardless of insurance approval or carrier denial, with indemnification obligations extending to defense costs and damages arising from the contractor's negligence or breach.

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Insurance Requirements

12/29/2025 Drug and Alcohol Testing BY26-00029583 ORM-FRM-505 REV 4 10/10/18 Page 1 of 4 RR-261229-DPD-18444

SECTION A.

CONTRACTOR shall procure, pay for and maintain the following insurance written by companies approved by the State of Texas and acceptable to CITY. The insurance shall be evidenced by delivery to the CITY, at the address shown in SECTION C (a), certificates of insurance executed by the insurer or its authorized agent stating coverages, limits, expiration dates and compliance with all applicable required provisions. The CITY shall be named as an additional insured by endorsement to the policy and thus will be entitled to notice of cancellation of the policy in accordance with Section 1811 of the Texas Insurance Code.

Upon request, the CITY shall be entitled to receive without expense, copies of the policies and all endorsements. CITY HAS NO DUTY TO PAY CONTRACTOR UNTIL SUCH

CERTIFICATE HAS BEEN DELIVERED TO THE CITY.

SECTION B.

The CITY reserves the right to review the insurance requirements of this section during the effective period of the services or work performed by CONTRACTOR and to modify insurance coverages and their limits when deemed necessary and prudent by City's Office of Risk Management based upon changes in statutory law, court decisions or other relevant factors. The CONTRACTOR shall acquire and ensure execution of requests for deletions, revisions or modifications of particular policy terms, conditions, limitations, or exclusions (except where policy provisions are established by law or regulation binding upon either CITY or CONTRACTOR).

SECTION C. REQUIRED PROVISIONS

The CONTRACTOR agrees, with respect to the required insurance as documented below, all certificate(s) of insurance will contain and state, in writing, the following required provisions:

a) The certificate of insurance or policy and endorsements shall be evidenced by delivery to:

(i) Dallas Police Department, Attention: Alina Nair, 1500 Marilla St, Dallas, Texas 75201 and

(ii) Director, Office of Risk Management, 1500 Marilla, 6A-South, Dallas, Texas 75201.

b) All certificates of insurance shall identify the service or product being provided, by including the bid number and contract or solicitation name.

c) All certificates of insurance shall name the City of Dallas as the Certificate Holder.

SECTION D. INSURANCE COVERAGE REQUIRED

Subject to CONTRACTOR’S right to maintain reasonable deductibles, CONTRACTOR shall obtain and maintain in full force and effect for the duration of its engagement with the CITY and any extension hereof, at CONTRACTOR’S sole expense, insurance coverage in the following type(s) and amounts:

ORM-FRM-505 REV 4 10/10/18 Page 2 of 4 RR-261229-DPD-18444

1. MEDICAL PROFESSIONAL LIABILITY INSURANCE

Medical Professional Liability Insurance to provide coverage against any claim which the CONTRACTOR becomes legally obligated to pay as damages arising out of the performance of professional services caused by malpractice, error, omission or negligent act with minimum limits of $1,000,000 per incident, $1,000,000 annual aggregate.

The policy shall include:

a) An endorsement to provide thirty (30) days prior written notice in the event of cancellation to the address as shown in Section C, a (i) and (ii), or in accordance with Section 1811.155 of the Texas Insurance Code, Notice of Cancellation in accordance with the Notice of Insured in the policy for cancellation due to non-payment of premium.

SECTION E. SELF-INSURED RETENTION (SIR)

Contractor may satisfy all or part of the insurance requirements under the Contract by means of self-insurance so long as:

(a) the SIR is permitted under all laws applicable to Contractor at the time Contractor submits its bid or proposal;

(b) Contractor maintains a net worth (as shown by its financial statements audited in accordance with generally accepted accounting principles) of not less than One Hundred Million Dollars ($100,000,000);

(c) if the Contractor is using their balance sheet to back the SIR, the SIR cannot exceed 10% of their net worth;

(d) Contractor, not less than annually, provides the City an audited financial statement, prepared by an independent certified public accountant in accordance with generally accepted accounting principles consistently applied, showing the net worth requirements outlined herein; and

(e) the SIR provides for loss reserves that are actuarially derived in accordance with accepted standards of the insurance industry and accrued (i.e., charged against earnings) or otherwise funded.

Any self-insured exposure shall be deemed to be an insured risk under the Contract. The beneficiaries of such insurance shall be afforded no less insurance protection than if such self-insured portion was fully insured by an insurance company of the quality and caliber required hereunder (including, without limitation, the protection of a legal defense, by attorneys reasonably acceptable to beneficiaries, and the payment of claims within the same time period that a third party insurance carrier of the quality and caliber otherwise required hereunder would have paid such claims).

The waiver of subrogation provided for hereunder shall be applicable to any self-insured exposure. All SIRs must be acceptable to and approved in writing by the City prior to implementation and the insurance required under the Contract must be maintained in excess of such SIRs. Any and all deductibles and/or SIRs for the insurance policies described in this Exhibit shall be assumed by and for the account of Contractor or any Contractor’s subcontractors, as applicable, at its sole risk and expense.

ORM-FRM-505 REV 4 10/10/18 Page 3 of 4 RR-261229-DPD-18444

SECTION F. SUBCONTRACTING LIABILITY

(1) Without limiting any of the other obligations or liabilities of the CONTRACTOR, the CONTRACTOR shall require each Subcontractor performing work under the contract, at the Subcontractor's own expense, to maintain during the engagement with the CITY, types and limits of insurance that are appropriate for the work being performed, comply with all applicable laws and are consistent with industry standards. The Subcontractor’s liability insurance shall name CONTRACTOR as an additional insured.

(2) CONTRACTOR shall obtain and monitor the certificates of insurance from each Subcontractor. CONTRACTOR must retain the certificates of insurance for the duration of the contract and shall have the responsibility of enforcing insurance requirements among its subcontractors. The CITY shall be entitled, upon request and without expense, to receive copies of these certificates.

SECTION G. CONTRACTOR LIABILITY

Approval, disapproval or failure to act by the CITY regarding any insurance supplied by CONTRACTOR or its subcontractors shall not relieve CONTRACTOR of full responsibility or liability for damages and accidents as set forth in the contract documents. Neither shall the bankruptcy, insolvency nor denial of liability by the insurance company exonerate CONTRACTOR from liability.

SECTION H. INDEMNITY

CONTRACTOR agrees to defend, indemnify and hold the CITY, its officers, agents and employees, harmless against any and all claims, lawsuits, judgments, costs and expenses for personal injury (including death), property damage or other harm for which recovery of damages is sought, suffered by any person or persons, that may arise out of or be occasioned by CONTRACTOR’S breach of any of the terms or provisions of its engagement with the CITY, or by any negligent or strictly liable act or omission of CONTRACTOR, its officers, agents, employees, or subcontractors, in CONTRACTOR’S performance under its engagement with the CITY; except that the indemnity provided for in this paragraph shall not apply to any liability resulting from the sole negligence or fault of the CITY, its officers, agents or employees and in the event of joint and concurrent negligence or fault of CONTRACTOR and the CITY, responsibility and indemnity, if any, shall be apportioned comparatively in accordance with the laws of the State of Texas, without waiving any governmental immunity available to the CITY under Texas law and without waiving any defenses of the parties under Texas law. The provisions of this paragraph are solely for the benefit of the parties hereto and are not intended to create or grant any rights, contractual or otherwise, to any other person or entity.

ORM-FRM-505 REV 4 10/10/18 Page 4 of 4 RR-261229-DPD-18444

CONTRACTOR (COMPANY NAME):_________________________________

BY:_____________________________________________________________

Signature of Authorized Representative

NAME:__________________________________________________________

Name of Authorized Representative (please print)

DATE:________________________

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