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, . . . . Dr, Jeris Danielson May 22, 1986 Page Three You will find that consultants who maintain adequate professional and general liability insurance coverage are normally those of financial substance with an excellent track record. They conduct their operations so that their insurance policies can be renewed without question. This is absolutely necessary since all liability policies are on a "claims made basis. " That is, we must have coverage in future years at the time any claims might be made for the consultants work completed in prior years. Boyle expects to be in business for the next 45 years just as we have been in business for the past 45 years and we're greatly concerned about agreeing to undertake uninsurable risks and jeopardizing our insurance coverage by signing indemnification provisions which are not limited to negligence. You can expect the consultants who would sign such provisions are either presently uninsured, or have minimal assets at risk, or will probably lose their coverage in the near future, if any can remain in business at alL From my perspective it is inequitable to request a consultant with limited resources to assume uninsurable risks over which they have no control. I would appreciate you bringing our position on this matter to the Attorney General and hope that he will reconsider his position. I'm sure the state wants to be sure that their consultants carry adequate professional and general liability insurance, Insistence on an indemnification provision beyond negligence will almost certainly result in the loss of the coverage that both the state and consultant require and need. If it would be appropriate, I would be glad to have our attorney meet with the Attorney General's staff on this subject. Very truly yours, BOYLE ENGINEERING CORPORATION ~.-J 5: ~dd&)d Thomas S, Maddock, P.E. President TSM/kmc cc: Mr, McDonald (Director CWCB) Dan Boyd, Principal, Boyle Engineering Corporation DN-B99-197-32