CCP113 Errors & OmissionsCITY OF SAN JUAN CAPISTRANO
COUNCIL POLICY
Subject: Effective Policy
Page Date Number
ERRORS AND OMISSIONS INSURANCE
FOR CONSULTING AGREEMENTS 1 of 2 11/3/87 113
It is the policy of the City Council that the following guidelines be utilized in deter-
mining when to require errors and omissions insurance from consultants who are under
contract with the City for professional services.
I. General Rule
Contracts with consultants providing for professional services shall include a
requirement that the consultant shall maintain, during the term of the agree-
ment, errors and omissions insurance for professional negligence.
II. Waiver of Errors and Omissions Insurance
Errors and omissions insurance may be waived from professional consulting
agreements where one or more of the following factors are considered
applicable:
A. The nature of the consulting work involves only general planning studies
or development of base data;
B. The consulting work is not connected with the design and construction
of a significant capital improvement;
C. The total cost of consulting services is small (for example under
$10,000), whereas the cost of securing errors and omissions insurance
relative to the cost of the service is high;
D. Few proposals have been submitted to the City;
E. City Attorney concurs that the waiver of errors and omissions insurance
would not result in significant liability risk to City based on considerations
of nature of the exposure created by the service provided and the
applicability of governmental immunities provided under state law.
CITY OF SAN JUAN CAPISTRANO
COUNCIL POLICY
Subject: Effective Policy
Page Date Number
ERRORS AND OMISSIONS INSURANCE
FOR CONSULTING AGREEMENTS 2 of 2 11/3/87 113
III. Procedure
The appropriate department head and City Attorney shall make an initial
recommendation as to the requirement of errors and omissions insurance.
For consulting agreements under $10,000, the City Manager shall have final
authority in determining whether errors and omissions insurance shall be
required. Consulting agreements of more than $10,000 shall be decided upon
by the City Council.
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