Vendors
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Vendors
No vendor (including sub-contractors) may work on our properties until they have first submitted their liability certificate and proof of workers compensation for both your ministry site (e.g. Parish, School, Mission, Station) and the Diocese. No exceptions.
Here is an excellent redacted sample of one of our parishes that has the workers compensation included on the two liability certificates. They could also be separate in four documents. There are additional requirements, such as making sure your certificates properly indicate you are an additional insured, read on...Citation: CMG Catholic Mutual Cares...How do I know if my parish has been named as an "Additional Insured?"Many parishes have a difficult time determining when they have been named as an additional insured on a tenant, contractor or facility user insurance policy. Parishes often obtain a certificate of insurance, which names the parish as a “certificate holder.” It is not adequate to be named as a “certificate holder."
The insurance certificate furnished to the parish by the tenant, contractor or facility user must indicate in writing that both the parish and the (Arch)Diocese are named as an additional insured. Please refer to Exhibit A for an example of a certificate of insurance where the parish has been named as an additional insured. Please note that not every certificate of insurance naming the parish and the (Arch)Diocese as an additional insured will look like Exhibit A. However, somewhere on the certificate the words additional insured must appear.
It is very important that the parish be listed as an additional insured rather than as a “certificate holder.” As a “certificate holder,” the parish has no legal rights under a tenant, contractor or facility user’s insurance policy. However, when the parish has been named as an additional insured, the insurance policy of the tenant, contractor or facility user must defend the parish against claims, which resulted from tenant, contractor or facility user operations at the parish. The purpose of being named as an additional insured is to reduce the number of dollars spent on claims not related to parish activities. Therefore, it is essential that parishes verify that both the parish and the (Arch)Diocese have been named as an additional insured. Since a contractor, tenant, facility user or parish festival vendor will have to make a specific request to their insurance company to get the parish named as an additional insured, it is important to inform them of this requirement well in advance.Without these certificates if there is any damage, injury, or death that happens to the vendor, or caused by the vendor, your parish or school is responsible for the expenses resulting from any medical bills, damage, lawsuits, etc. Our insurance carrier will pay zero, as they require us to obtain the liability certificate and proof of workers compensation.A Cautionary Tale A real example that happened to one our parishes. The parish did not collect the required liability certificates and proof of workers compensation from the contractor, nor from the sub-contractor that the contractor hired to demolish a building. While working the sub-contractor fell and was seriously injured ($90,000 in medical bills). He went to the contractor that hired him and gave him the medical bill to pay. The contractor said that he didn't have the money to pay it and it would bankrupt him. The sub-contractor had no choice and sued the contractor. The contractor did indeed go bankrupt. Under Utah law, the sub-contractor then went to the parish to pay the bill. The parish tried to get our insurance carrier to pay the claim, but we didn't collect the proof of workers compensation, so our parish was on their own. The insurance company would not pay a penny. The parish didn't want to pay, the sub-contractor had no choice and sued the parish. The judge ruled that the parish is indeed responsible to make the injured whole. In the end, the parish paid $90,000 in medical bills and another $70,000 to cover both the parish's and the sub-contractor's legal bills. The parish was out $160,000 and needed to collect that money from the parishioners. If they had proof of Workers Compensation, the Utah Workers Compensation insurance office would have paid the medical bills immediately, and the parish would have paid zero.