KDVA Directors & Officers Liability Insurance

The Commonwealth of Kentucky Department of Veterans Affairs issued Request for Bid (RFB) 758 2300000459 on January 25, 2023, seeking Directors and Officers Liability Insurance coverage on a claims-made basis for the department and its four skilled nursing facilities: Carl M. Brashear Radcliff Veterans Center, Joseph E. "Eddie" Ballard Western Kentucky Veterans Center, Paul E. Patton Eastern Kentucky Veterans Center, and Thomson Hood Veterans Center. The required coverage includes a limit of $2,000,000 per claim with a $2,000,000 general annual aggregate, nil deductibles for both Directors and Officers claims and Employment Practices Liability claims, defense costs, and Extended Reporting Period (tail coverage). The policy must cover the Department of Veterans Affairs, the Office of Kentucky Veterans Centers, and any past, present, or future directors, officers, trustees, employees, volunteers, and committee members. The initial contract period runs from March 31, 2023, through March 31, 2024, with four optional one-year renewal periods available at the Commonwealth's discretion. Bidders must submit responses electronically through the Kentucky eProcurement system by the extended deadline of February 16, 2023, at 1:30 PM ET, with written questions having been due by January 31, 2023, at 10:00 AM ET. Evaluation will be conducted on a best value basis with price as the sole criterion worth 100 points, with the lowest compliant bidder receiving maximum points and other bids scored proportionally. Bidders must demonstrate minimum requirements including AM Best Rating of B+ or better, Certificate of Authority, appropriate endorsements, and compliance with Kentucky insurance code Chapter 304 KRS.

The procurement includes reciprocal preference for Kentucky resident bidders and qualified bidder preferences of 15 to 20 percent of maximum available points for Kentucky Correctional Industries, Kentucky Industries for the Blind, and certified nonprofit organizations serving individuals with disabilities that employ such individuals for at least seventy-five percent of direct labor hours. All bidders must complete mandatory affidavits addressing campaign finance law compliance and resident or qualified bidder status claims, along with required forms including the Bidder Information Sheet, Bid Quotation Form, Bid Specification Deviation Form, and Bid Specification Enhancement Form. Bidders must submit one marked copy and three additional copies of insuring agreements, endorsements, and sample policies, with pricing to remain valid for a minimum of 90 calendar days after the bid due date. Pricing shall include the base premium, 1.8% Kentucky Surcharge, and 3% Surplus Lines Tax if applicable, with all costs F.O.B. Destination Freight Prepaid and Allowed, excluding federal excise tax and Kentucky sales or use tax. No specific award value or budget range is disclosed in the solicitation documents. The successful bidder must deliver an original binder copy within ten days of award but no later than two days before coverage effectiveness, with the original policy and endorsements due within 45 days after coverage begins.