Insurance Requirements for Special Use Permits

Overview

General Liability Insurance is required when services are being offered to the public, or where the authorized officer has determined insurance is necessary. A common example if permits requiring insurance is Outfitter and Guide permits.

The amount of insurance required will depend on the degree of risk involved. The Forest Representative administering the special use permit will inform the prospective permittee of the required liability coverage necessary. Please check with the permit administrator on minimum amount of coverage required.

When insurance is required, the holder shall furnish proof of insurance, such as a certificate of insurance, to the Authorized Officer prior to issuance of this permit and each year thereafter that this permit is in effect.  The Forest Service reserves the right to review the insurance policy and require any changes needed to ensure adequate coverage of the United States in connection with the authorized use and occupancy.

Your insurance must have an Additional Insured Endorsement stating that the US Government is an additionally insured. Use the following phrase verbatim on your Endorsement.

“It is understood and agreed that the United States Government is additional insured solely as respects to liability arising from operations of the named insured."

Before a permit can be issued, provide a Certificate of Insurance with the following listed in the Certificate Holder box:

US Government

C/O Klamath National Forest

1711 South Main Street

Yreka, CA 96097

If your insurance company is going “paperless” and asks for an email address to send the policy to, use the following: SM.FS.KNF_SpecUses@usda.gov

Note that your insurance must cover all operations of your business. For example, if you transport clients, your liability insurance must cover transportation services. If your business utilizes a contractor for ancillary services and they are not covered under your insurance policy, your contractor must have a separate policy with US Government listed as an Additional Insured. Talk with your insurance broker to make sure you have appropriate insurance. You may be asked to present a complete copy of your insurance before your permit is issued. (FSH 2709.14 Chapter 53.1j)

Choosing an Insurance Policy

• Discuss the limits of coverage required and terms of compliance necessary to operate on Forest Service land with your insurance agent and permit staff. Minimum coverage limits are based upon the highest risk activity in which you engage. Your coverage must meet or exceed the highest limit for all your activities regardless of the frequency of that activity. Minimum limits are set by region and activity and are subject to review by the district ranger for adequacy. You must be able to obtain the required limits of coverage established by your permit administration and fulfill all insurance requirements in order to be issued a permit.

• The coverage location as stated in your policy and on the Certificate of Insurance must include the permitted area(s) of operations.

• The insurance company you use must have a minimum rating of A- as a financial rating and a- as a credit rating as rated by A.M. Best.

• Defense costs may not reduce the coverage limits for any type of coverage. If claims reduce coverage limits, the minimum limit of insurance for the highest risk activity will be doubled to allow for payment of defense costs from those coverage limits.

• Permit holder must obtain an additional insured endorsement from all independent contractors and subcontractors to cover their ongoing and completed operations (if applicable) covering the period of their work/activity.

• As the permit holder you are required to provide a written notice at least 30 days in advance of any cancellation.

• The policy must provide an endorsement wherein the Forest Service is provided 30-day written notice of cancellation; and/or 10 day written notice for non-payment.

Minimum Coverage

Exclusions and Endorsements

As a permit holder you must be sure to include all services in your insurance policy and be sure that the insurance company does not exclude services or activities that you provide to your clients. You and the government do not want to be held liable for incidents that occur because your insurance policy excluded services that you do provide. Some examples are below:

• Is food served? Need an endorsement to completed operations to cover food service. Review the additional insured form to be sure it does not exclude food service.

• Are clients transported across FS land? Need to provide coverage to the same minimum limits for auto, watercraft, and airplanes.

• Are services provided to youth or other vulnerable populations (need molestation insurance)

• Are there any fuel storage tanks on FS land, or would a spill that occurs on private property impact FS land? Need pollution and pollution clean-up insurance-these represent different losses and might require separate limits of insurance.

• Is there use of Forest Service buildings? Is the amount appropriate? Does it cover all perils?

• Is liquor sold in the package or by drink? Need coverage for liquor.

• Are there any sporting or athletic activities? Requires separate endorsements to cover the specific activities.