IN THE PUBLIC EYE

Alliant Updates IRIC Manual for 2025

By: Thomas Joyce, Alliant

 

Insurance Requirements in Contracts (IRIC), along with indemnification, are among the most valuable assets that risk managers can contribute to their organizations’ risk financing programs. 

 

The IRIC Manual was initially developed by public entity risk professionals and consultants over 30 years ago as a resource to public entities. Keeping the manual current is an ongoing effort and Alliant assumes this responsibility as a service to our clients. Thomas Joyce, Shadi Jalali, Daniel Howell and Marcus Beverly in Alliant Public Entity edit the manual with the support of Robert Marshburn of CertifiedRiskManagers.com. Each fall, the team gathers to review updates to industry forms, recent court decisions interpreting coverage and current developments affecting public entity risk transfer.  Alliant has placed the newest IRIC manual on the Alliant Public Entity Education and Pooling web page where it can be accessed in formats that allow  users to easily edit the language for their needs.

 

Additions to the 2025 IRIC Manual include:

 

  • Multiple Coverage Contract Endorsements: In Chapter 2, a note has been added regarding new multiple coverage contract endorsements that are being found in the marketplace. These combine previously individual endorsements into single omnibus endorsements. Coverages tend to only be effective if they are specifically required by written contract or agreement between parties. When encountering these endorsements, they should be inspected to ensure they are “at least as broad as” the corresponding coverage provided by standard ISO endorsements. Particular care should be taken because these omnibus endorsements are customized by the issuing insurance company and are therefore non-standard endorsements.
  • Cyber Risks: In Chapter 4, clarifications have been made regarding the recommended insurance requirements for agreements involving information technology. A particular emphasis has been added on technology errors and omissions coverage and how this differs from traditional cyber liability. Pixel tracking exclusions have also been added to the Emerging Risks section of the IRIC.
  • Parks & Recreation Risks: In Chapter 7 of the IRIC, clarification has been added that other municipalities should be wary of some perils traditionally associated with schools. In particular, entities with parks and recreation departments that operate daycares, camps or recreational activities should make sure they have adequate sexual abuse and molestation (SAM) coverage.
  • Student Placement Agreements: In Chapter 8, the section on student placement agreements has been expanded. Situations arise when students need hours of real-world practicum experience to graduate, so the schools enter agreements with host organizations to provide that experience. When the students are working for the host organizations, complex negotiations can arise regarding insurance requirements and indemnification for loss arising out of the actions of students; there can be contention between the school and the host organization over whose insurance should cover these potential incidents.

 

Alliant Public Entity is pleased to provide these IRIC updates to add value for our clients. If you have questions, contact your Alliant advisor or Thomas.Joyce@Alliant.com.