Section 29-6221. INSURANCE

 

6221.1The requirements of this section shall be explicitly stated in the resident's contract for placement.

 

6221.2The facility shall secure and maintain the insurance policies required in this section. All policies shall be written by insurers which are licensed as regulated insurers by the District of Columbia government and are in good standing under such license, with a rating by the A.M. Best Company of A- or greater, and with a financial class size of VIII or higher, or equivalent ratings from a recognized insurance rating service which the licensing agency has approved in writing.

 

6221.3The facility shall provide to the contracting entity original certificates of insurance complying with the provisions of this section together with the facility's application for an original annual license, as required by § 6209, and together with the facility's application for annual renewal, as required by § 6210. Such certificate or certificates shall evidence and summarize the terms of actual policies in force for all the coverages for the contracting entity, licensing agency and the District of Columbia government, as set forth in this section. The cancellation clause in every certificate shall not include the words, "endeavor to" and "but failure to mail such notice shall impose no obligation or liability of any kind upon the company, its agents or representatives," or other similar language.

 

6221.4As used herein, the term staff member includes all employees of the facility and any other person (including, without limitation, volunteers, independent contractors, and vendors) regularly providing services at the facility. A person regularly provides services at the facility if the person:

 

(a)Visits the facility on at least a weekly basis;

 

(b)Visits the facility for at least ten (10) hours per month; or

 

(c)Provides direct care and supervision of residents.

 

6221.5The facility shall secure and maintain, and provide evidence that its staff members who are independent contractors secure and maintain (in the form of certificates complying with § 6221.3), commercial general liability insurance, containing contractual liability insurance, insuring the facility as named insured and naming the contracting entity, licensing agency and the District of Columbia government as additional insureds, on an occurrence (not claims-made) basis, with per location or per project limits (exclusive of defense costs) of not less than:

 

(a)One million dollars ($ 1,000,000) per occurrence for bodily injury or death or property damage, combined single limit;

 

(b)One million dollars ($ 1,000,000) per occurrence for personal and advertising injury;

 

(c)One million dollars ($ 1,000,000) per occurrence for products-completed operations; and

 

(d)Subject to a general aggregate of two million dollars ($ 2,000,000) per policy year.

 

All such policies shall be primary coverage and the facility's policies shall provide coverage for all staff members excluding independent contractors. Deductibles under commercial general liability insurance policies shall not exceed five thousand dollars ($ 5,000.00) per occurrence.

 

6221.6The facility shall secure and maintain business automobile policy insurance for owned, non-owned and hired vehicles with a combined single limit (exclusive of defense costs) of not less than one million dollars ($ 1,000,000). All such policies shall be primary coverage and shall provide coverage for all staff members. Limits for uninsured and under-insured motorists shall be not less than one million dollars ($ 1,000,000).Physical damage deductibles under business automobile policies shall not exceed five thousand dollars ($ 5,000.00) per occurrence.

 

6221.7The facility shall secure and maintain, and provide evidence that its staff members who are independent contractors secure and maintain (in the form of certificates complying with § 6221.3), worker's compensation insurance with statutory worker's compensation limits. The facility's policies shall cover all staff members excluding independent contractors.

 

6221.8The facility shall secure and maintain, and provide evidence that its staff members who are professional independent contractors secure and maintain (in the form of certificates complying with § 6221.3), professional liability insurance with limits (exclusive of defense costs) of not less than one million dollars ($ 1,000,000) per occurrence. The facility's policies shall be primary coverage and shall provide coverage for all of the facility's professional staff excluding independent contractors.

 

6221.9The facility shall secure and maintain employer's liability insurance with limits of not less than one hundred thousand dollars ($ 100,000) per accident, five hundred thousand dollars ($ 500,000) disease policy limit, one hundred thousand dollars ($ 100,000) disease, each employee. All such policies shall be primary coverage and shall provide coverage for all staff members.

 

6221.10The facility shall secure and maintain coverage of the building, improvements, furnishings, fixtures and equipment, inventory and other personal property by broad form ("all-risk") commercial property insurance on a full replacement cost, agreed amount basis, waiving subrogation against the licensing agency, the contracting entity and the District of Columbia government and containing an additional insured endorsement naming the licensing agency, the contracting entity and the District of Columbia government as additional insureds. The facility shall secure and maintain time value insurance coverage for one hundred percent (100%) of the loss of income/extra expense coverage incurred in occurrences covered by the facility's commercial property insurance policy. Deductibles under property insurance policies maintained by the facility shall not exceed five thousand dollars ($ 5,000.00) per occurrence. All such policies shall be primary coverage. If all or a portion of the above coverages are maintained by the facility's landlord, the facility shall also provide evidence of the landlord's coverage in the form of evidence of insurance complying with § 6221.3, which evidence shall include a waiver of subrogation against the licensing agency, the contracting entity and the District of Columbia government.

 

6221.11The facility shall secure and maintain excess or umbrella liability insurance with limits of not less than ten million dollars ($ 10,000,000) per occurrence, subject to a general aggregate of ten million dollars ($ 10,000,000) per policy year, and self-insured retention of no more ten thousand dollars ($ 10,000), covering not less than the same liabilities and coverages set forth in §§ 6221.5, 6221.6, 6221.8 and 6221.9 in excess of the limits specified in those policies.

 

6221.12If any claim has been made under any policy of insurance required hereunder and the limits or coverages of insurance are reduced thereby, the facility shall replenish such insurance to the limits and coverages provided herein.

 

6221.13The insurance policies required by this section shall contain the following endorsement:

 

"It is hereby understood and agreed that the insurer may not cancel, fail to renew, or reduce the coverage or liability limits of this policy unless the insurer provides the contacting entity, licensing agency, and the Office of the City Administrator with written notice of an intent to take such action at least ten (10) days in advance of cancellation for non-payment of premium and thirty (30) days in advance of any other such action. The insurer shall serve notice to the following persons by certified mail, return receipt requested:

 

Director

Child and Family Services Agency

400 6th Street SW 

Washington, D.C. 20024 

 

Administrator

Youth Services Administration

Central Administration Building 

8300 Riverton Court 

Laurel, Maryland 20707 

 

Office of the City Administrator

Attention Risk Management Officer

441 4th Street, N.W. 

Suite 1150 

Washington, D.C. 20001"

 

6221.14No later than ten (10) days prior to a renewal, cancellation, non-renewal, or reduction in coverage or liability limits, the facility shall obtain and furnish to the contracting entity, licensing agency, and Office of the City Administrator copies of certificates complying with § 6221.3 for replacement insurance policies meeting the requirements of this section.

 

6221.15The legal liability of the facility to the contracting entity, licensing agency, District of Columbia government, and any person for any of the matters that are the subject of the insurance policies required by this section shall not be limited by such insurance policies or by the recovery of any amounts thereunder.

 

6221.16Insurance coverage may be provided under policies that cover more than one location; provided, however, that the limits and coverages shall apply separately to each location.

 

6221.17The facility shall defend, indemnify and hold the contracting entity, licensing agency, and the District of Columbia government, and its elected and appointed officials and officers, employees, agents and representatives, harmless from and against any and all injuries, claims, demands, judgments, suits in law and equity (including without limitation, habeas corpus actions), actions before administrative tribunals, damages, losses and expenses, including reasonable attorney's fees and costs of suit or defense, that actually or allegedly, in whole or in part, arise out of, or result from:

 

(a)The operation of the facility;

 

(b)Performing or failing to perform duties required by or reasonably related to the requirements of the contract between the facility and the contracting entity; or

 

(c)Providing or offering services, whether or not caused by the facility or its affiliates, officers, employees, agents, contractors or subcontractors;

 

whether or not such acts or omissions were alleged or proven to have been caused in whole or in part by the contracting entity, the licensing agency or the District of Columbia government, and whether or not such acts or omissions are authorized, allowed or prohibited by this Chapter. The facility's indemnity obligations under this section shall not apply to any injuries, claims, demands, judgments, damages, losses or expenses to the extent arising out of or resulting from the gross negligence or willful misconduct by the contracting entity, the licensing agency or the District of Columbia government, or their officials, officers, employees, agents or representatives, provided that no such gross negligence or willful misconduct, alleged or actual, shall affect the facility's obligation to defend the contracting entity, licensing agency, and the District of Columbia government.

 

6221.18The facility shall provide copies of the policies for any or all of the insurance required by this section to the contracting entity and licensing agency upon written request.

 

6221.19All notices and documents required under this section shall be provided to the licensing agency, the contracting entity, and the Office of the City Administrator, at the following addresses:

 

Director

Child and Family Services Agency

400 6th Street SW 

Washington, D.C. 20024 

 

Administrator

Youth Services Administration

Central Administration Building 

8300 Riverton Court 

Laurel, Maryland 20707 

 

Office of the City Administrator

Attention Risk Management Officer

441 4th Street, N.W. 

Suite 1150 

Washington, D.C. 20001 

 

6221.20The requirements of § 6221 shall not apply to facilities owned or operated by the District of Columbia government.

 

source

Final Rulemaking published at 48 DCR 8675, 8696 (September 21, 2001).