Common use of CLAIM MANAGEMENT PROVISIONS Clause in Contracts

CLAIM MANAGEMENT PROVISIONS. 1. Upon notice of a claim or potential claim to a Member Agency, the Member Agency shall promptly give notice (no later than any timeframe imposed by its coverage agreement with its Coverage Provider) of the claim or potential claim to its Coverage Provider and to the chief business official of any other actually or potentially involved Member Agency. The Coverage Providers shall, in keeping with their respective obligations under their coverage agreements, assume claim management responsibilities if coverage actually or potentially exists, and coordinate responses to the claim or potential claim, including determinations of the existence of joint/separate defense obligations, with a coverage decision promptly communicated to the Member Agencies and the other potentially involved Coverage Provider. The Coverage Providers shall determine if one or both of their claim departments shall be involved in further claim management activities. If coverage is determined not to exist under one or both Coverage Providers’ agreements, the indemnity provisions above shall control. 2. Should a claimant allege that two or more Member Agencies were at fault for causing harm, damage or injury, the following provisions shall apply: a. If coverage would exist under one or both Coverage Providers’ coverage agreements, and the Coverage Providers determine that a claim arises from only one Member Agency’s act, errors, or omissions, the Coverage Provider for the responsible Member Agency shall extend a joint defense to the Member Agencies (and their respective directors, officers, or employees), and exclusively manage all subsequent defense, settlement, and other claim management decisions, as long as the indemnified Member Agency fully and completely cooperates in all such activities. b. If a determination cannot be immediately made as to which Member Agency is responsible for a claim, in the absence of an irreconcilable and non-waivable conflict of interest, the Member Agencies (for themselves and their respective directors, officers, employees) agree to be jointly represented by a single defense counsel, as mutually agreed by the Member Agencies or their respective Coverage Providers, with the Member Agencies or their Coverage Providers sharing equally in the cost of all reasonable and necessary defense. If an irreconcilable and non-waivable conflict of interest exists, each Member Agency shall be responsible for its own attorneys’ fees, costs, and expenses incurred by counsel of its own choice. c. In the case of joint or several liability for which full indemnity rights do not exist under these provisions, whether through settlement or judgment, each Member Agency and/or their Coverage Providers shall be solely and separately responsible for any apportioned damages arising from the Member Agencies’ respective negligent, reckless, or intentional acts. 3. For claims that can potentially be transferred to a third party under indemnity or risk transfer agreements, or operation of law or equity, all Parties shall timely and cooperatively work with one another to tender the claim to such third party and fully pursue and protect such rights. All parties shall also take no action to harm or negate every other Party’s actual or potential right of contribution, indemnity, or subrogation from such a third party, or the actual or potential right to coverage or benefits under any other coverage agreement or insurance policy to which one or more of the Member Agencies may be entitled to coverage consideration as an insured, an additional named insured, an insured by definition (i.e., an omnibus insured clause), or other term or condition.