(1)Traditional contractor insurance requirements. The coverage and limits of insurance required for a traditional contractor are specified in the contract. The Department requires a traditional contractor to provide proof that all required insurance is effective and in force before the SOC short-form contract can be executed.
(2)Nontraditional contractor insurance requirements.
(a)If a nontraditional contractor is providing a service that requires transporting the client, the Department requires the nontraditional contractor to provide proof of:
(A)A valid Oregon driver’s license; and
(B)Automobile liability coverage that has limits not less than required by ORS 806.060 (Methods of compliance). The nontraditional contractor must have automobile insurance in effect during the term of the SOC short-form contracts.
(b)The State of Oregon, through the Risk Management Division of the Department of Administrative Services provides nontraditional contractors with general liability insurance coverage including legal defense and excess automobile liability coverages. These coverages are provided to a nontraditional contractor, while acting within the course and scope of duties listed in the short-form contract, to the extent that a claim arises out of the provisions of services pursuant to the Short Form Contract’s terms and statement of work. The provision of general liability coverage does not make the nontraditional contractor an agent of the Department or of the State of Oregon or subject the contractor to ORS 30.260 (Definitions for ORS 30.260 to 30.300) to 30.300 (ORS 30.260 to 30.300 exclusive) (the Oregon Tort Claims Act).
(c)The coverage described in subsection (b) of this section is not provided for acts, errors, or omissions due to malfeasance; for willful or wanton neglect of duty; for acts outside the short-form contract’s specified scope of work; or for punitive damages.
(d)Following are the limits of coverage provided by the State to nontraditional contractors:
(A)$50,000 to a claimant for any number of claims for damage to or destruction of property, including consequential damages, arising out of a single accident or occurrence;
(B)$100,000 to a claimant as general and special damages for all other claims arising out of a single accident or occurrence;
(C)$200,000 for all claims arising out of a single accident or occurrence;
(D)The dollar limits for defense cost coverage are included in the above dollar limits. Once this dollar limit is reached, further defense costs are the responsibility of the nontraditional contractor.
(e)The nontraditional contractor must report, in writing, each claim and each occurrence that reasonably may give rise to a claim to the contract administrator, who will forward the information to the Risk Management Division as promptly as practicable.
Rule 413-330-0950 — Insurance,