Medical and Pharmacy Benefits Administrative Services Only

The Vendor is required to provide for medical and pharmacy benefits administrative services only.
- The City requires all contractor / vendor insurance policies be written on a primary basis and be noncontributory with any other insurance coverages and/or self-insurance carried by the City, meaning, the City and its coverage provider is not to pay first or contribute in any way.
- Insurance coverage serves as part of the financial backing for liability assumed by a contracting party through indemnification language in a contract. Instead of intentionally utilizing its own assets to support liability, the contracting party is transferring risk to the insurance company in return for payment of insurance premium. Without insurance, most contractors / vendors would not be able to meet indemnification obligations when a significant loss occurs.
- For most contractors / vendors, the City will generally require the contract reflect a minimum level of insurance limits on five types of insurance coverage: Commercial General Liability, Workers’ Compensation, Employers’ Liability, Business Automobile Liability and Professional Liability when appropriate.
- Business Automobile Liability insurance covers liabilities assumed by a business when the type of motor vehicles required to be licensed for operation on public roads, or public property, are used during business activities. In situations where the contracting party will be utilizing motor vehicles (owned, hired or borrowed) to perform operations/provide services on City owned property or on behalf of the City, the contracting party will be required to carry Business Automobile Liability insurance, with the City as named as Additional Insured in the contract. If the contractor / vendor will be transporting hazardous substances or passengers for hire, they must meet all State and Federal licensing requirements.
- The amount of insurance required by the City is based on the level of risk involved with the type of service or activity taking place, as well as the scope and nature of the project to be completed (e.g. where negligent work by the contractor / vendor could result in significant damage to City property, business operations or injury to citizens, employees, or visitors), but not less than the amount stated
- Workers’ Compensation covers an employer’s statutory financial obligation to pay costs associated with an employee’s medical treatment and lost wages due to a work-r e l a t e d injury or illness
- With very limited exceptions, state laws require all businesses performing certain types of work (construction / contractor services) to either purchase workers’ compensation coverage or become an authorized self-insurer by statute.
- This coverage generally applies when an employee alleges the employer's negligence or failure to provide a safe workplace was the cause of the employee's injury or illness.
- Employer’s liability is normally provided in conjunction with workers’ compensation coverage in a single unified policy, but state allows for rejection of the Workers’ Compensation Act.