[IPAC-List] Indemnify and Hold Harmless Insurance Policies?

Richard Joines mpscorp at value.net
Mon Sep 29 20:09:12 EDT 2014

I'm just curious to find out if anyone knows of an insurance company that has ever paid a government agency's legal bill when a consultant's test was rented and used by the government agency, but challenged by one or more candidates?

I've seen a few purchase orders lately that are actually purchase contractse with fine print on the flip side which says that the consultant agrees to indemnify and hold harmless the agency, it's officers, etc., etc., and this apparently means that if a candidate or group of candidates challenges the consultant's test, then the consultant's insurance policy must pay for the legal defense and all expert fees that result from the challenge.  Is there such an insurance policy available to testing consultants?

I've seen several of these purchase orders/purchase contracts but have not been willing to do business under these circumstances.  Wasn't it Griggs v. Duke Power where the U.S. Supreme Court told the Duke Power company that it was their responsibility and they couldn't off-load the liability onto the Wonderlic Corporation (who published the test in question, the Wonderlic Personnel Test)?

My attitude has been no way, I won't take that liability and I don't think there is any insurance policy that will pay up.  I had an errors and omissions policy when I used to belong to A.P.A., but after awhile, I thought it was probably useless in the employment context, and I stopped paying for this policy, and later I quit APA!  I guess I'm just getting too old to see the benefits of trying to please the Risk Manager crowd, but I would love to hear other opinions, views, and any interesting experiences.

Richard Joines, President
Management & Personnel Systems, Inc.

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