Common use of Liability of MCO Clause in Contracts

Liability of MCO. (a) MCO bears all risk of loss or damage to HHSC or the State due to: (1) Defects in Services or Deliverables; (2) Unfitness or obsolescence of Services or Deliverables; or (3) The negligence or intentional misconduct of MCO or its employees, agents, consultants, Subcontractors, or representatives. (b) MCO must, at the MCO’s own expense, defend with counsel approved by HHSC, indemnify, and hold harmless HHSC and State employees, officers, directors, contractors and agents from and against any losses, liabilities, damages, penalties, costs, fees, and expenses from any claim or action for property damage, bodily injury or death, to the extent caused by or arising from the negligence or intentional misconduct of the MCO and its employees, officers, agents, consultants, or Subcontractors. HHSC will not unreasonably withhold approval of counsel selected by MCO. (c) MCO will not be liable to HHSC for any loss, damages or liabilities attributable to or arising from the failure of HHSC or any state agency to perform a service or activity in connection with this Contract.