Common use of Prompt Response to Claims by the Public Clause in Contracts

Prompt Response to Claims by the Public. Delete the last five sentences and Substitute the following: “The Contractor shall promptly address all damage claims of the public and, if not paid directly, claims shall be promptly turned over to the Contractor’s insurance company without prejudicing the validity of the claim. There should be an interval of no more than ten (10) working days between receipt of a written claim by the Contractor and receipt by the insurance company. The Contractor shall notify the Authority when the claim is either turned over to the insurance company or paid directly. The insurance company is expected to investigate, determine and adjust such claims promptly and fairly with notice to the Authority as an additional named insured. If the insurance company denies a claim, the Contractor must make sure that the insurance company provides the Authority with an explanation of its investigation and conclusion. A denial by the insurance company does not relieve the Contractor of its responsibility to comply with contract provisions. If the Authority determines that the Contractor has performed responsibly in accordance with the contract provisions, which includes documentation of performance of an acceptable schedule of patrols, the Contractor will have no further responsibility under the Contract. The Authority will monitor claims by the public. If the Contractor fails to comply with this process or denies a claim without proper cause and justification, the Authority will settle the claim to the claimant's satisfaction at the Contractor’s expense including Authority administrative expenses ($250 minimum).”