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Liablility / Criminal Records - FAQs
- What is a performance bond and how does the agency determine the dollar amount of the bond?
- A performance bond is generally 10% of the face value of the contract, but can be up to 100% of the contract in very risky situations. It is generally used in construction situations and guarantees that the contractor is ready, willing, and able to perform the task. If the contractor does not follow through on the contract, the bond is forfeited.
- What is the amount of insurance coverage that should be indicated on Annex B of Agreements? Can this be waived?
- $100,000 per person, and $300,000 for all occurrences. Contact the Division’s Legal Services Officer on a case by case basis if a waiver is being considered.
- What is the commercial general liability coverage referred to in the MOU?
- This is for the contractor who has contact with our clients. It gives us recourse if DFCS is sued due to the actions of our contractor.
- Should the DFCS agency require proof of liability insurance when contracting with a public school system?
- No, the insurance coverage on a school system devolves from the state. Public school systems are covered under the umbrella policy when they are acting in their official capacity as school systems. Private schools are not covered by this policy and would require private insurance coverage.
- Should the DFCS agency actually see proof of liability insurance in the amounts specified?
- Yes, the DFCS agency should be provided and review the Certificate of Liability Insurance on the contractor to ensure that the contractor has the required insurance. If the contractor has employees or chooses to subcontract out the work, then it is the responsibility of the contractor to warrant to the DFCS agency that his employees or subcontractors have the required insurance coverage.