Requirements of the Agency's Professional Liability Insurance

Some of our contracts involve the Agency performing services. Examples include:

  • Locum tenens agreements.
  • Subcontracts for provider services, such as TDCJ providers.
  • Affiliation agreements where the Agency's students are coming to TTUHSC's facility.

When drafting these contracts, it is necessary to list the Agency's professional liability insurance and the dollar amount and type limitations of that insurance.

Departments should use TTUHSC's own limitations as guidance when reviewing the Agency's insurance protection, taking into consideration the risks associated with the services being performed. In addition to obtaining limitations by dollar amount, it is also important to obtain the type of limitation, such as per occurrence and annual aggregate.

The following is an insurance clause that should be used in drafting:

[Agency] shall maintain, during the term of this agreement and any extensions thereof, professional liability insurance with a limit of liability no less than [insert dollar amount] per [insert condition: i.e. occurrence, claim, incident] and [insert dollar amount] annual aggregate. Proof of such coverage shall be submitted to TTUHSC prior to the provision of services under this agreement. [Agency] shall immediately notify TTUHSC of any changes to or events affecting the status of the insurance or of any disciplinary action, judgment or settlement with respect to a professional liability claim.