Consortium spells out liability priorities and insurance requirements for WIOA administration

The consortium agreement establishes a four-tier priority for covering liability from disallowed costs: first, recovery from the contractor, agent or third party that caused the liability; second, recovery from insurance or bond insurers; third, repayment by the fiscal agent to the extent permitted by law; and fourth, shared apportionment by LEOs relative to population proportions.

The agreement requires the Workforce Development Board to provide "satisfactory evidence of adequate insurance coverage including, but not limited to, general and special liability insurance, audit exception insurance" and requires subcontractors to provide evidence of insurance naming the WIOA Board and the LEOs as additional insureds. It also provides that any proposed settlement exceeding insurance limits "must be approved by a majority of the members." The text further states that notice must be given to each LEO regarding any claim or suit filed.