CLAIMS SERVICE CONTRACT»vericlaim
a sedgwick company
CLAIMS SERVICE CONTRACT
City of Clearwater, FL (hereinafter referred to as "Client") located at 100 S. Myrtle Avenue,
Clearwater, FL agrees that VeriClaim, Inc. (hereinafter referred to as "Contractorr) located as
1833 Centre Point Circle, Suite 139, Naperville, IL 60563, will provide claims administration
services for Client's Auto & General Liability claims reported from February 1, 2018 to and
including April 30, 2018.
WITNESSETH THAT:
1. WHEREAS, Client has elected to administrate its claims program in the State(s) of Florida.
2. WHEREAS, Contractor provides claims administration and other related services.
3. WHEREAS, Client has selected Contractor to provide designated services for the
described program.
4. NOW, THEREFORE, be it agreed that Client and Contractor have agreed to enter into this
Contract.
I. DUTIES AND OBLIGATIONS OF CONTRACTOR
A. Contractor shall investigate, evaluate and handle each claim reported under this
Contract until each claim is concluded or this contracted relationship between
Client and Contractor expires, whichever occurs first (hereinafter referred to as
"Claim Handling Obligation Period").
B. Contractor shall have lump sum settlement authority of $ - 0 - per claimant.
C. The assignments will be handled by Vericlaim as generally follows:
• Handle new claims received by from Client via email with cc to Vericlaim
Administrator. Client will include all attachments, photos, and instructions.
• Maintain and manage pending claims
• Field investigations and recorded statements will not be done unless
deemed necessary.
• File Handling will be documented on an outlook document and sent to Risk
Mgmt. Admin with cc to Mary.
• Liability and payments are approved by Client.
• File Summaries will be provided for all new claims and pending claims that
are worked during the transition.
• Reserves and payments will be sent to Risk Mgmt. Admin.
• Weekly Meetings on Wednesdays at City of Clearwater
• Invoice bi-weekly.
D. Contractor will provide a Client Service Representative to be the interface for set-
up and ongoing relations with Client.
1L DUTIES AND OBLIGATIONS OF CLIENT
A. Client agrees that all claims occurring during the term of this Contract will be
reported to the Contractor, unless otherwise agreed with Client. Client will provide
all information relevant to Clients claims to Contractor in order for Contractor to
fulfill its duties and obligations as set out in this Contract.
B. Client agrees to compensate Contractor for Services at the rate of $147.00 per
hour. In addition, the following fees will also be charged: (1) Ordinary Office
Expenses will be calculated at 18% of Services, has been waived for this contract
(2) Reporting Purpose Only Fee will be 85.00 per file, and (3) Any applicable sales
taxes or other jurisdiction fees. All invoices are due and payable to VeriClaim, Inc.,
1833 Centre Point Circle, Suite 139, Naperville, IL 60563, within Net (30) days of
Contractors invoice date.
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Service Fees exclude any claim handled outside the Continental United States,
which will be handled for Time and Expense at Contractor's prevailing rates at time
and place of activity.
Service Fees exclude "Allocated Expenses", including those provided direct by
Contractor, all of which will be paid by Client. "Allocated Expenses" include the
following:
• Attorneys, court costs, fees for service of process and other related expenses
• Independent medical exams and medical records/reports
• All outside activity to complete field investigation by VeriClaim adjusters
• Outside experts and sub -contractors, including private investigation
• Transcripts and public records
• Depositions, court reporters, video statements, and transcription costs
• Other extraordinary expenses including but not limited to photocopying (excess
of 25 copies per file), travel, express mail, public records and similar expenses
as may be incurred by Contractor in fulfilling its obligation
Client agrees that Contractor will have the right to renegotiate the Service Fees in
the event of statutory, regulatory or judicial changes that require additional
activities not contemplated at the inception of this Contract.
Service fees will not exceed $40,000.00 for this contract period.
C. Client reserves right to take over the handling and control of any claim at any time
for any reason but with no expense or reduction in claim service fees or allocated
claim expenses incurred by Contractor.
D. Client agrees that closed files will be retained in their existing state at time closed
for a period of three years from date of last file activity by Contractor; after which,
at Client's option, files will be either returned to Client at Client's expense or stored
at Contractor's prevailing monthly fee which will be billed to Client.
(please delete (d.) Above since our files will remain in the office)
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III. MUTUAL DUTIES AND OBLIGATIONS
A. Reciprocal Indemnity Agreements
1. Client agrees to defend, indemnify and hold harmless Contractor against
all claims, demands, proceedings, actions, damages, costs and expenses
to which Contractor may be subjected as a consequence of fulfilling its
obligations under this Contract or as directed by Client or its employees, if
not caused solely by the negligent acts, errors or omissions of Contractor.
2. Contractor agrees to defend, indemnify and hold harmless Client against
all claims, demands, proceedings, actions, damages, costs and expenses
to which Client may be subjected solely as a consequence of negligent
acts, errors or omissions of Contractor.
B. Required Insurance: Contractor will maintain the following insurance coverages:
• Commercial General Liability Insurance coverage, including but not limited to,
premises operations, products/completed operations, products liability,
contractual liability, advertising injury, personal injury, death, and property
damage in the minimum amount of $1,000,000 (one million dollars) per
occurrence and $2,000,000 (two million dollars) general aggregate.
• Commercial Automobile Liability Insurance coverage for any owned, non -owned,
hired or borrowed automobile is required in the minimum amount of $1,000,000
(one million dollars) combined single limit.
• Unless waived by the State of Florida, statutory Workers' Compensation
Insurance coverage in accordance with the laws of the State of Florida, and
Employer's Liability Insurance in the minimum amount of $100,000 (one hundred
thousand dollars) each employee each accident, $100,000 (one hundred
thousand dollars) each employee by disease and $500,000 (five hundred
thousand dollars) aggregate by disease with benefits afforded under the laws of
the State of Florida. Coverage should include Voluntary Compensation, Jones
Act, and U.S. Longshoremen's and Harbor Worker's Act coverage where
applicable. Coverage must be applicable to employees, contractors,
subcontractors, and volunteers, if any.
• Professional Liability Insurance coverage appropriate for the type of business
engaged in by the Contractor with minimum limits of $1,000,000(one million
dollars) per occurrence. If a claim made form of coverage is provided, the
retroactive date of coverage shall be no later than the inception date of claims
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made coverage, unless prior policy was extended indefinitely to cover prior acts.
Coverage shall be extended beyond the policy year either by a supplemental
extended reporting period (ERP) of as great a duration as available, and with no
less coverage and with reinstated aggregate limits, or by requiring that any new
policy provide a retroactive date no later than the inception date of claims made
coverage.
Other Insurance Provisions.
a. Prior to the execution of this Agreement, and then annually upon the
anniversary date(s) of the insurance policy's renewal date(s) for as long as
this Agreement remains in effect, the Vendor will furnish the City with a
Certificate of Insurance(s) (using appropriate ACORD certificate, SIGNED
by the Issuer, and with applicable endorsements) evidencing all of the
coverage set forth above and naming the City as an "Additional Insured"
on the Commercial General Liability Insurance and the Commercial
Automobile Liability Insurance. In addition, when requested in writing from
the City, Vendor will provide the City with certified copies of all applicable
policies. The address where such certificates and certified policies shall
be sent or delivered is as follows:
City of Clearwater
Attn: Purchasing Department
P.O. Box 4748
Clearwater, FL 33758-4748
b. Vendor shall provide thirty (30) days written notice of any cancellation, non-
renewal, termination, material change or reduction in coverage.
c. Vendor's insurance as outlined above shall be primary and non-
contributory coverage for Vendor's negligence.
d. Vendor reserves the right to appoint legal counsel to provide for the
Vendor's defense, for any and all claims that may arise related to
Agreement, work performed under this Agreement, or to Vendor's design,
equipment, or service. Vendor agrees that the City shall not be liable to
reimburse Vendor for any legal fees or costs as a result of Vendor providing
its defense as contemplated herein.
The stipulated limits of coverage above shall not be construed as a
limitation of any potential liability to the City, and City's failure to
request evidence of this insurance shall not be construed as a waiver
of Vendor's (or any contractors', subcontractors', representatives' or
agents') obligation to provide the insurance coverage specified.
C. Excess Reporting. Contractor will not assume the responsibility for notification
to any excess insurance carrier of claims, however, reports will be provided as
required.
D. Cancellation. Either party may cancel this Contract hereto upon the happening
of any of the following events:
1. Thirty (30) days with prior written notice;
2. Immediately upon bankruptcy, insolvency or reorganization for the benefit
of creditors of either party;
3. Immediately upon default in the payment of any indebtedness under this
Contract;
4. Immediately upon failure of either party to remedy a breach of contract and
provide evidence thereof within thirty (30) days after receipt of written
notice from the other party.
This right of cancellation belonging to either may be exercised without prejudice to
any other remedy to which it may be entitled at law or under this Contract.
E. Arbitration. Any controversy or claim arising out of this Contract, or breach
thereof, shall be settled by arbitration in accordance with the Commercial
Arbitration Rules of the American Arbitration Association. Any claim made as a
result of the relationship established by this Contract must be initiated by either
party within four years from date of Contract expiration.
F. Notices. Notices to be given under this Contract shall be in writing and shall be
deemed sufficient if delivered to the addresses of the parties to this Contract as
stated in this Contract.
G. Governing Law. This Contract shall be governed by the laws of Pinellas County,
State of Florida
H. Amendment. This Contract may be modified or amended only in writing and
signed by both parties to this Contract.
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Severability. Should any provision of this Contract be declared or determined by
any Court to be illegal or invalid, the validity of the remaining parts, terms or
provisions shall not be affected thereby and said illegal part, term or provision shall
be deemed not to be a part of this Contract.
J. Entire Contract. This Contract, together with the exhibits attached hereto,
constitutes the entire Contract between the parties with respect to the subject
matter hereof, and other written or oral prior agreements, contracts, proposals,
representations, statements, negotiations, understandings, or assurances, are
superseded hereby.
IN WITNESS WHEREOF, Client and Contractor have caused this Contract to be executed by
persons authorized to act in their respective names.
Countersigned:
lcnrrc\00
George N. Cretekos
Mayor
Assistant City Attorney
Witness
CITY OF CLEARWATER, FLORIDA
By: id 13204.414 6,1,444,to-J2E-
William B. Horne II
City Manager
Attest:
_dl4-rLct.: 0
Rosemarie Call
City Clerk
VeriClaim, Inc. (Contractor)
By: eta
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Exhibit One
SECTION B IS ONLY REQUIRED IF THE VENDOR IS ACTING AS AN AGENT
OF THE CITY, OTHERWISE DELETE SECTION B. THIS 1S A VERY RARE
OCCURENCE, PLEASE CHECK WITH YOUR ATTORNEY IF YOU ARE NOT SURE.
A. Retention of Records: The Consultant will be required to comply with
Section 119.0701, Florida Statutes, specifically to:
a. Keep and maintain public records required by the City of
Clearwater to perform the service;
b. Upon request from the City's Custodian of Records, provide
the City of Clearwater with a copy of the requested records or
allow the records to be inspected or copied within a reasonable
time at a cost that does not exceed the cost provided in
Chapter 119 or as otherwise provided by law;
c. Ensure that public records that are exempt or confidential and
exempt from public records disclosure requirements are not
disclosed except as authorized by law for the duration of the
contract term and following completion of the contract if the
contractor does not transfer to the City of Clearwater; and
d. Upon completion of the contract, transfer, at no cost, to the City
of Clearwater all public records in possession of the contractor
or keep and maintain public records required by the City of
Clearwater to perform the service. If the Consultant transfers
all public records to the City of Clearwater upon completion of
the contract, the Consultant shall destroy any duplicate public
records that are exempt or confidential and exempt from public
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records disclosure requirements. If the Consultant keeps and
maintains public records upon completion of the contract, the
Consultant shall meet all applicable requirements for retaining
public records. All records stored electronically must be
provided to the City of Clearwater, upon request from the City
of Clearwater's Custodian of Public Records, in a format that is
compatible with the information technology systems of the City
of Clearwater.
IF THE CONSULTANT HAS QUESTIONS REGARDING THE APPLICATION OF
CHAPTER 119, FLORIDA STATUTES, TO THE CONSULTANT'S DUTY TO
PROVIDE PUBLIC RECORDS RELATING TO THIS CONTRACT, CONTACT THE
CUSTODIAN OF PUBLIC RECORDS, ROSEMARIE CALL AT 727-562-
4090, rosemarie.call@myclearwater.com, and/or 112 S. Osceola Ave., Clearwater,
FL, 33617
Date:
5-(mAL. 3, Zotg'
City of Clearwater Service Agreement 2018 V.3
RCH
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