AZ Mutual Aid Compact

City of Chandler — Study Session (2022-06-20)

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247749.1 10/1/2014 
ARIZONA MUTUAL AID COMPACT 
 
This Compact is made and entered into by and among the signatory political jurisdictions 
within the State of Arizona and the Arizona Department of Emergency and Military Affairs. 
 
Recitals 
 
WHEREAS, one or more parties to this Compact may find it necessary to utilize all of their own 
resources to cope with emergencies and may require the assistance of another party or other 
parties; and,  
WHEREAS, it is desirable that all resources of political subdivisions, municipal corporations, 
tribes and other public agencies be made available to respond to such emergencies; and, 
WHEREAS, it is desirable that each of the parties hereto should assist one another when such 
emergency occurs by providing such resources as are available and needed including, but not 
limited to, fire, police, medical and health, environmental, communication, and transportation 
services to cope with the problems of response and, 
WHEREAS, it is desirable that a compact be executed for the interchange of such mutual aid; 
and, 
WHEREAS, it is desirable to utilize this agreement in exercising adopted emergency plans; 
and, 
WHEREAS, it is desirable that the manner of financing of such cooperative undertakings be 
resolved in advance of such emergency;  
NOW, THEREFORE, IT IS HEREBY AGREED by and between each and all of the signatories 
hereto as follows:

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COMPACT 
 
1. 
Purpose. 
The purpose of this Compact is to define for the participating parties the emergency 
management terms and procedures which will be used among participating parties for 
dispatching mutual aid assistance to any affected area in accordance with local ordinances, 
resolutions, emergency plans or agreements. Contracting authority for political subdivisions of 
Arizona for this Compact is based upon A.R.S. § 26-308 which provides that each county and 
incorporated city and town of the state may appropriate and expend funds, make contracts and 
obtain and distribute equipment, materials and supplies for emergency management purposes. 
Tribal contracting authority will be in accordance with each Tribe’s laws. Special District 
authority will be in accordance with their respective laws.  Public education district authority is 
based on A.R.S. § 15-342(13) and A.R.S. § 11-952. This Agreement shall be construed in 
accordance the laws of the State of Arizona. 
 
 
2. 
Scope. 
 
The Scope of this Compact is to (1) provide the procedures to notify the Providing 
Parties of the need for emergency assistance; (2) to identify available resources; and, (3) to 
provide a mechanism for compensation for resources. 
 
3. 
Definitions. 
• Automatic Mutual Aid means the automatic dispatch and response of requested 
resources without incident specific approvals. These agreements are usually basic 
contracts; some may be informal accords. 
• Backfill means replacement of the Requesting Party’s personnel who perform the 
regular duties of other personnel while they are performing eligible emergency work. 
• Compact means this document, the Arizona Mutual Aid Compact (AZMAC). 
• Director is the Director of the Department of Emergency and Military Affairs 
(DEMA). 
• Emergency or Emergencies means any disaster, emergency, or contingency 
situation which requires a collaborative effort among multiple Jurisdictions. 
• Exercise is the exercising of adopted emergency plans utilizing the Homeland 
Security Exercise and Evaluation Program (HSEEP) 
• Jurisdiction means an entity, including Political Subdivisions and tribal 
governments, which (1) has the authority to act, within a defined geographical area 
especially in times of emergency and (2) is a party to this Compact.

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• Local Mutual Aid are agreements between neighboring jurisdictions or 
organizations that involve a formal request for assistance and generally cover a 
larger geographic area than automatic mutual aid. 
• Political Subdivision means any county, incorporated city or town, fire district, or 
public education district, irrigation, power, electrical, agricultural improvement, 
drainage, and flood control districts, and other tax levying public improvement 
districts. 
• Providing Party means the Jurisdiction providing aid in the event of an emergency. 
• Requesting Party means the Jurisdiction requesting aid in the event of an 
Emergency. 
• Self-deployed means to respond to an emergency without being requested by the 
Requesting Party. 
 
4. 
Guiding Policy. 
• Arizona Revised Statute (A.R.S.), Title 26, Military Affairs and Emergency 
Management. 
• Arizona Administrative Code (A.A.C.), Title 8, Emergency and Military Affairs. 
• National Incident Management System (NIMS), 2008 
 
5. 
Procedures for Requesting Assistance. 
 
A Requesting Party which needs assistance in excess of its own resources and existing 
automatic mutual aid or local mutual aid due to an emergency is authorized to request 
assistance from any party to this Compact.  However, when making such requests, 
consideration shall be given to, and requests made, based on, but not limited to, the 
geographical proximity of other jurisdictions with that of the jurisdiction requesting assistance.  
All requests for assistance from the State must be coordinated through the Requesting Party’s 
county emergency operations center, or tribal emergency operations center (whichever is 
applicable). 
 
Requests should specify what the emergency is, what resources are needed and the 
estimated period of time during which such mutual aid shall be required, if known.  Please use 
the Resource Request form provided in Appendix A. 
  
6. 
Providing Party’s Assessment of Availability of Resources and Ability to Render 
Assistance. 
 
Subject to the terms of this Compact, the Providing Party shall make reasonable efforts 
to assist the Requesting Party.  In all instances, the Providing Party shall render such mutual 
aid as it is able to provide consistent with its own service needs at the time, taking into

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consideration the Providing Party’s existing commitments within its own jurisdiction.  The 
Providing Party shall be the sole judge of what mutual aid it has available to furnish to the 
Requesting Party pursuant to this Compact.  
 
7. 
Implementation Plan. 
 
Each party should develop an emergency operations plan that includes a process to 
provide for the effective mobilization of its resources, both public and private, including 
acceptance of mutual aid to provide or receive assistance under this Compact.  
 
8. 
Contact List. 
 
Each Party shall develop a contact list as outlined in Appendix B, which shall be 
provided to the Director for distribution to all other parties to this Compact. 
 
9. 
Reimbursement Procedures between Parties. 
If the Providing Party desires reimbursement for the assistance they are providing, the 
Requesting Party shall reimburse the Providing Party for all costs incurred  in the mutual 
assistance, whether an incident has been declared an emergency or not. The Providing Party 
must declare its intent to seek reimbursement as part of their response to the Requesting 
Party’s request for assistance (see Appendix A: Resource Request forms). The Providing 
Party and the Requesting party shall agree upon allowable costs for mutual assistance prior to 
the dispatch of any mutual assistance resources.  Unless otherwise negotiated by the parties 
involved, the parties may reference the state allowable costs as defined in A.A.C. Title 8 (as 
may be amended from time to time).  If the assistance is authorized and accepted, the 
Requesting Party shall reimburse the Providing Party all allowable costs of labor, equipment, 
and materials that have actually been expended during the execution of the mission 
assignment, after receipt of an itemized voucher and documentation is received. 
 
If there has been a declaration of emergency from the Governor and/or President, the 
Requesting Party may be eligible for reimbursement for these mutual aid costs under the state 
or federal declaration of emergency.  See item 10. 
 
10. 
Reimbursement Procedures from the State. 
 
If the Governor and/or President have declared an emergency, the Requesting Party 
can prepare an itemized voucher and documentation of all paid allowable costs including all 
the cost of the mutual aid resources reimbursed to any Providing Parties under this Compact, 
for submittal to the State for consideration for reimbursement in accordance with A.A.C. Title 8 
(as may be amended from time to time).  As per A.A.C. Title 8, R8-2-301, sub-parts 1, 12 & 15, 
only state agencies and political subdivisions are eligible to receive reimbursement under a 
Governor's Declaration.  Any Tribal Nations as the Requesting Party would need to seek 
reimbursement under a Presidential Declaration.  Any Tribal Nations as the Providing Party

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would seek reimbursement from the Requesting Party as outlined in Item 9. 
 
The state is not liable for any claim arising from an emergency for which the applicant 
receives funds from another source (A.A.C. Title 8, R8-2-312).  
 
Self-deployed resources will not be reimbursed. 
 
11. 
Personnel Compensation and Insurance. 
 
The Requesting Party and the Providing Party shall be responsible for all compensation 
and insurance coverage of their respective employees and equipment. 
 
12. 
Immunity.  
 
The parties shall have such immunity as provided by applicable state, federal or tribal 
law. 
 
13. 
Indemnification. 
 
Each party (as "Indemnitor") agrees to defend, indemnify, and hold harmless the other 
party (as "Indemnitee") from and against any and all claims, losses, liability, costs, or expenses 
(including reasonable attorney's fees) (hereinafter collectively referred to as "Claims") arising 
out of bodily injury of any person (including death) or property damage, but only to the extent 
that such Claims which result in  vicarious/derivative liability to the Indemnitee are caused by 
the act, omission, negligence, misconduct, or other fault of the Indemnitor, its officers, officials, 
agents, employees, or volunteers.  This compact is between Governmental entities. Should a 
signatory to this agreement use a contractor for any purpose, said contractor would be 
required to abide by ADOA Risk Management insurance requirements which are attached as 
Appendix C. 
 
 
 
14. 
Term. 
 
This Compact shall be effective on the date it is recorded with the Secretary of State. 
Except as otherwise provided in this Compact, this Compact shall terminate ten years after the 
effective date.  This Compact, upon mutual consent of the parties may be extended for a 
period of time not to exceed 10 years.  Any modification or time extension of this Compact 
shall be by formal written amendment and executed by the parties hereto. 
 
15. 
ADA. 
 
Each party shall comply with applicable provisions of the Americans with Disabilities Act 
(Public Law 101-336, 42 United States Code. 12101-12213) and all applicable federal 
regulations under the Act, including 28 Code of Federal Regulation Parts 35 and 36.

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16. 
Non-Discrimination. 
To the extent of the law the Parties shall comply with Executive Order 2009-9, which 
mandates that all persons, regardless of race, color, religion, sex, age, or national origin not 
mentioned in Order shall have equal access to employment opportunities, and all other 
applicable state and Federal employment laws, rules, and regulations, including the Americans 
with Disabilities Act.  Parties shall take affirmative action to ensure that applicants for 
employment and employees are not discriminated against due to race, creed, color, religion, 
sex, national origin or disability. 
 
17. 
Compliance with Laws. 
 
Each party shall comply with all federal, tribal, state and local laws, rules, regulations, 
standards and Executive Orders, as applicable, without limitation to those designated within 
this Compact. Any changes in the governing laws, rules and regulations during the terms of 
this Compact shall apply but do not require an amendment. 
 
18. 
Worker’s Compensation. 
 
 
Each Party herein shall comply with the provisions of A.R.S §23-1022(E) by posting the 
public notice required. As provided for in A.R.S. §23-1022(D), an employee of a public agency 
who works under the jurisdiction or control of or within the jurisdictional boundaries of another 
public agency pursuant to a specific intergovernmental agreement or contract entered into 
between the public agencies is deemed to be an employee of both public agencies. However, 
the primary employer is solely liable for the payment of Workers” Compensation benefits. As 
such, each Party shall maintain Workers’ Compensation insurance coverage on all of its own 
employees providing services pursuant to this agreement. 
 
19. 
Insurance. 
Each Party shall bear the risk of its own actions, as it does with all its operations, and 
shall determine for itself an appropriate level of insurance coverage and maintain such 
coverage. Nothing in this Agreement shall be construed as a waiver of any limitation on liability 
that may apply to a Party.   
 
20. 
Non-appropriation. 
Every payment obligation of the Parties under this Agreement is conditioned upon the 
availability of funds appropriated and allocated for the payment of such obligation. If funds are 
not appropriated, allocated and available or if the appropriation is changed by the legislature 
resulting in funds no longer being available for the continuance of this Agreement, this 
Agreement may be terminated by the Parties at the end of the period for which funds are

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available.  No liability shall accrue to the Party in the event this provision is exercised, and 
neither Party shall be obligated or liable for any future payments or for any damages as a 
result of termination under this paragraph. 
 
 
21. 
No Third Party Beneficiaries. 
 
Nothing in the provisions of this Compact is intended to create duties or 
obligations to or rights in third parties not parties to this Compact or affect the legal liability of 
any party to the Compact by imposing any standard of care different from the standard of care 
imposed by law. 
 
22. 
Entire Compact. 
 
This document constitutes the entire Compact between the parties pertaining to the 
subject matter hereof.  This Compact shall not be modified, amended, altered or extended 
except through a written amendment signed by the parties and recorded with the Arizona 
Secretary of State or Tribal government as appropriate. 
 
23. 
Jurisdiction. 
 
Nothing in this Compact shall be construed as otherwise limiting or extending the legal 
jurisdiction of any party.   Nothing in this Compact is intended to confer any rights or remedies 
to any person or entity that is not a party. 
 
24. 
Conflict of Interest. 
The requirements of A.R.S. § 38-511 apply to this Agreement.  The Parties may cancel 
this Agreement, without penalty or further obligation, if any person significantly involved in 
initiating, negotiating, securing, drafting or creating this Agreement on behalf of the Party is, at 
any time while this Agreement or any extension is in effect, an employee, agent or consultant 
of Party with respect to the subject matter of this Agreement. 
 
25. 
Supervision and Control. 
 
Management of an emergency shall remain with the jurisdiction in which the emergency 
occurred.  Supervision and control of Providing Parties’ personnel and equipment shall be in 
accordance with National Incident Management System. The Requesting Party will be 
responsible for providing supplies and services, such as food, shelter, gasoline and oil, for on-
site use of equipment and for the personnel providing assistance.  All equipment and 
personnel used pursuant to this Compact shall be returned to the Providing Party upon being 
released by the Requesting Party or on demand of the Providing Party for such return.

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26. 
Severability: Effect on Other Agreements. 
 
It is expressly understood that this Compact shall not supplant existing agreements 
between some of the parties, which do provide for the exchange or furnishing of certain types 
of services on a compensated basis. 
 
27. 
Severability. 
 
If any provision of this Compact is held to be invalid or unenforceable, the remaining 
provisions shall continue to be valid and enforceable to the full extent permitted by law. 
 
28. 
Responsibility of the Department of Emergency and Military Affairs. 
 
Nothing within this Compact limits or restricts the duties and obligations the State of 
Arizona may have to respond to the emergency of any party. 
 
29. 
Effective Date. 
 
This Compact shall become effective as to each party when adopted by resolution and 
executed by the governing body of the jurisdiction, and shall remain operative and effective as 
between each and every party that has heretofore or hereafter executed this Compact, until 
participation in this Compact is terminated by the party.  The termination by one or more of the 
parties of its participation in this Compact shall not affect the operation of this Compact as 
between the other parties thereto.  The Director shall identify on their website, with updates as 
needed, all parties signatory to this Compact. 
 
30. 
Execution Procedure. 
 
Execution of this Compact shall be as follows: 
This Compact, which will be designated as “ARIZONA MUTUAL AID COMPACT,” shall be 
executed in counterparts by the governing body of each party.  Upon execution, the 
counterpart will be filed with the Secretary of State and the Tribal government as applicable 
and be provided to the Director.  This Compact will be effective between all parties who 
execute this Compact even if it is not executed by all eligible jurisdictions. 
 
31. 
Termination. 
 
Termination of participation in this Compact may be effected by any party as follows:   
 
Notice of termination will be given to the Director 20 days prior to termination. 
 
Any party may, by resolution of its governing body, terminate its participation in this 
Compact and file a certified copy of such resolution with the Secretary of State or the Tribal 
government, with a copy to be provided to the Director.   
 
 
The parties to this Compact understand and acknowledge that this Compact is subject

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to cancellation by any party pursuant to A.R.S. § 38-511 or applicable Tribal law. 
 
32. 
Dispute Resolution. 
The Parties to this Agreement agree to resolve all disputes arising out of or relating to 
this Agreement through arbitration, after exhausting applicable administrative review, to the 
extent required by A.R.S. § 12-1518 except as may be required by other applicable statutes. 
 
33.     Record Retention 
Pursuant to A.R.S. §§ 35-214 and 35-215, the Parties shall retain all records relating to this 
Agreement for a period of five years after completion of the Agreement. All records shall be 
subject to inspection and audit by the State of Arizona at reasonable times.

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ARIZONA MUTUAL AID COMPACT 
SIGNATURE PAGE 
IN WITNESS WHEREOF, the parties hereto each sign this Arizona Mutual Aid Compact 
signature page.  The signor warrants that he or she has been duly authorized to commit the 
jurisdiction to participate in the Compact by formal approval of the jurisdiction’s governing 
body. 
(Signing Authority) 
Date 
ATTEST:  
(Attesting Authority) 
Date 
Date of formal approval by governing body: 
Pursuant to A.R.S. § 11-952(D) or applicable Tribal law, the attorney for the above entity has 
determined that the foregoing Compact is in proper form and is within the powers and authority 
of the entity as granted under the laws of this State and the applicable Tribal government. 
(Attorney) 
Date

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Appendix A 
 
ARIZONA MUTUAL AID COMPACT (AZMAC)  
 
EMERGENCY MANAGEMENT RESOURCE REQUEST  
 
 
Date of Request 
Requesting Agency Tracking Number 
 
 
 
 
Requesting Organization 
Organization Point of Contact 
 
Work 
Cell 
E-Mail 
 
 
Requested Resource Type/Kind 
Quantity 
Unit of Measure 
Date/Time Required 
Resource must come with: 
 Fuel 
 
 
Meals  
 
Operator(s) 
 
Water 
 Maintenance 
 
Lodging 
 
Power  
 
Transporter 
Mission 
 
 
 
 
 
 
 
Special Instructions 
 
 
 
 
 
 
 
Request Forwarded to 
Contact Name 
Organization/Agency 
Vendor 
Date/Time of Submission 
 
Request Approved by 
 
 
 
 
 
Date

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Appendix A 
 
ARIZONA MUTUAL AID COMPACT (AZMAC) 
 
EMERGENCY MANAGEMENT RESOURCE REQUEST  
 
 
 
 
 
 
 
Date of Request 
Assisting Agency Tracking Number 
 
 
 
 
Assisting Organization 
Organization Point of Contact 
 
Work 
Cell 
E-Mail 
 
 
Requested Resource Type/Kind 
Quantity 
Unit of Measure 
Date/Time Required 
 
Offer 
Travel Costs 
Equipment Costs 
Commodities 
 
 
Personnel 
F. Name 
L. Name 
Phone 
E-Mail 
Regular 
Salary/ 
Hourly 
Rate 
Regular 
Fringe 
Benefit 
Hourly 
Rate 
Overtime 
Salary/ 
Hourly 
Rate 
Overtime 
Fringe Benefit 
Hourly Rate 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Estimated Resource Cost 
 
 
 
 
__________________________ 
 
Providing Party Agency Representative Signature and Date 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Representative Name and Title (Print) 
 
 
 
Signature & Date 
 
Requesting Party Agency Representative Signature and Date 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Representative Name and Title (Print) 
 
 
 
Signature & Date 
 
 
 
SIGN
SIGN

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Appendix B 
 
ARIZONA MUTUAL AID COMPACT (AZMAC)  
POINTS OF CONTACT 
 
Date: 
 
Name of Jurisdiction: 
 
Mailing Address: 
 
City, State, Zip Code: 
 
 Authorized Representatives to Contact for Mutual Aid Assistance 
 
 
Primary Contact 
1st Alternate 
2nd Alternate 
Name 
 
 
 
Title 
 
 
 
24-Hr Phone No. 
 
 
 
Address 
 
 
 
Day Phone No. 
 
 
 
Night Phone No. 
 
 
 
Fax No. 
 
 
 
Email

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Appendix C 
 
ARIZONA MUTUAL AID COMPACT (AZMAC) 
USE OF A CONTRACTOR  
   
 
 
 
     In addition, each signatory shall cause its contractor(s) and subcontractors, if any, to 
defend, indemnify,  and hold harmless the State of Arizona, any jurisdiction or agency issuing 
any permits for any work arising out of this Agreement, and their respective directors, officers, 
officials, agents, and employees (hereinafter referred to as “Indemnitee”) from and against any 
and all claims, actions, liabilities, damages, losses, or expenses (including court costs, 
attorneys’ fees, and costs of claim processing, investigation and litigation) (hereinafter referred 
to as “Claims”) for bodily injury or personal injury (including death), or loss or damage to 
tangible or intangible property caused, or alleged to be caused, in whole or in part, by the 
negligent or willful acts or omissions of signatory’s contractor or any of the directors, officers, 
agents, or employees or subcontractors of such contractor.  This indemnity includes any claim 
or amount arising out of or recovered under the Workers’ Compensation Law or arising out of 
the failure of such contractor to conform to any federal, state or local law, statute, ordinance, 
rule, regulation or court decree. It is the specific intention of the parties that the Indemnitee 
shall, in all instances, except for Claims arising solely from the negligent or willful acts or 
omissions of the Indemnitee, be indemnified by such contractor from and against any and all 
claims. It is agreed that such contractor will be responsible for primary loss investigation, 
defense and judgment costs where this indemnification is applicable.” 
 
Insurance Requirements for Governmental Parties: 
None. 
 
Insurance Requirements for Any Contractors Used by a Party to the Intergovernmental 
Agreement: 
(Note: this applies only to Contractors used by a governmental entity, not to the governmental 
entity itself.) The insurance requirements herein are minimum requirements and in no way limit 
the indemnity covenants contained in the Intergovernmental Agreement. The State of Arizona 
in no way warrants that the minimum limits contained herein are sufficient to protect the 
governmental entity or Contractor from liabilities that might arise out of the performance of the 
work under this Contract by the Contractor, his agents, representatives, employees or 
subcontractors, and Contractor and the governmental entity are free to purchase additional 
insurance.

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A. Minimum Scope and Limits of Insurance:  Contractor shall provide coverage with 
limits of liability not less than those stated below. 
1. Commercial General Liability – Occurrence Form 
Policy shall include bodily injury, property damage, personal and advertising injury 
and broad form contractual liability. 
• General Aggregate 
 
 
 
 
$2,000,000 
• Products – Completed Operations Aggregate 
$1,000,000 
• Personal and Advertising Injury 
 
 
$1,000,000 
• Damage to Rented Premises  
 
 
$     50,000 
• Each Occurrence 
 
 
 
 
$1,000,000 
a. The policy shall be endorsed (Blanket Endorsements are not 
acceptable) to include the following additional insured language: 
“The State of Arizona, and its departments, agencies, boards, 
commissions, universities, officers, officials, agents, and employees 
shall be named as additional insureds with respect to liability arising 
out of the activities performed by or on behalf of the Contractor.” 
Such additional insured shall be covered to the full limits of liability 
purchased by the Contractor, even if those limits of liability are in 
excess of those required by this Contract. 
 
(Note that the other governmental entity(ies) is/are also required to be 
additional insured(s) and they should supply the Contractor with their own 
list of persons to be insured.)  
b. Policy shall contain a waiver of subrogation endorsement (Blanket 
Endorsements are not acceptable) in favor of the “State of Arizona, 
and its departments, agencies, boards, commissions, universities, 
officers, officials, agents, and employees” for losses arising from 
work performed by or on behalf of the Contractor. 
 
2. Business Automobile Liability 
Bodily Injury and Property Damage for any owned, hired, and/or non-owned vehicles 
used in the performance of this Contract. 
• Combined Single Limit (CSL) 
$1,000,000 
a. The policy shall be endorsed (Blanket Endorsements are not 
acceptable) to include the following additional insured language: 
“The State of Arizona, and its departments, agencies, boards, 
commissions, universities, officers, officials, agents, and employees 
shall be named as additional insureds with respect to liability arising

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out of the activities performed by or on behalf of the Contractor, 
involving automobiles owned, leased, hired or borrowed by the 
Contractor". Such additional insured shall be covered to the full 
limits of liability purchased by the Contractor, even if those limits of 
liability are in excess of those required by this Contract. 
b. Policy shall contain a waiver of subrogation endorsement (Blanket 
Endorsements are not acceptable) in favor of the “State of Arizona, 
its departments, agencies, boards, commissions, universities and 
its officers, officials, agents, and employees” for losses arising from 
work performed by or on behalf of the Contractor. 
(Note that the other governmental entity(ies) is/are also required to be 
additional insured(s) and they should supply the Contractor with their own 
list of persons to be insured.) 
c.  Policy shall contain a severability of interest provision. 
 
3. Worker's Compensation and Employers' Liability 
• Workers' Compensation 
Statutory 
• Employers' Liability 
 
Each Accident 
$1,000,000 
Disease – Each Employee 
$1,000,000 
Disease – Policy Limit 
 
 
 
$1,000,000 
a. Policy shall contain a waiver of subrogation endorsement (Blanket 
Endorsements are not acceptable) in favor of the “State of Arizona, 
its departments, agencies, boards, commissions, universities and 
its officers, officials, agents, and employees” for losses arising from 
work performed by or on behalf of the Contractor. 
b. This requirement shall not apply to:  Separately, EACH contractor 
or subcontractor exempt under A.R.S. § 23-901, AND when such 
contractor or subcontractor executes the appropriate waiver (Sole 
Proprietor/Independent Contractor) form. 
 
B. Additional Insurance Requirements: The policies are to contain, or be endorsed 
(Blanket Endorsements are not acceptable) to contain, the following provisions: 
1. The Contractor's policies shall stipulate that the insurance afforded the 
Contractor shall be primary insurance and that any insurance carried by the 
Department, its agents, officials, employees or the State of Arizona shall be 
excess and not contributory insurance, as provided by A.R.S § 41-621 (E).

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2. The Contractor's insurance shall apply separately to each insured against 
whom claim is made or suit is brought, except with respect to the limits of the 
insurer's liability. Coverage provided by the Contractor shall not be limited to 
the liability assumed under the indemnification provisions of its Contract with 
the other governmental entity(ies) party to the IGA. 
 
C. Notice of Cancellation:  With the exception of (10) day notice of cancellation for non-
payment of premium, any changes material to compliance with this contract in the 
insurance policies  above shall require (30) days written notice to the State of 
Arizona. Such notice shall be sent directly to the Department and shall be sent by 
certified mail, return receipt requested. 
 
D. Acceptability of Insurers:  Contractors insurance shall be placed with companies 
licensed in the State of Arizona. Insurers shall have an “A.M. Best” rating of not less 
than A- VII or duly authorized to transact Workers’ Compensation insurance in the 
State of Arizona. The State of Arizona in no way warrants that the above-required 
minimum insurer rating is sufficient to protect the Contractor from potential insurer 
insolvency. 
 
E. Verification of Coverage:  Contractor shall furnish the State of Arizona with 
certificates of insurance (ACORD form or equivalent approved by the State of 
Arizona) as required by this Contract. The certificates for each insurance policy are 
to be signed by an authorized representative. 
All certificates and endorsements (Blanket Endorsements are not acceptable) are to 
be received and approved by the State of Arizona before work commences. Each 
insurance policy required by this Contract must be in effect at or prior to 
commencement of work under this Contract and remain in effect for the duration of 
the project. Failure to maintain the insurance policies as required by this Contract, or 
to provide evidence of renewal, is a material breach of contract. 
All certificates required by this Contract shall be sent directly to the Department. The 
State of Arizona project/contract number and project description are to be noted on 
the certificate of insurance. The State of Arizona reserves the right to require 
complete, certified copies of all insurance policies required by this Contract at any 
time.   
 
F. Subcontractors:  Contractor's certificate(s) shall include all subcontractors as 
insureds under its policies or Contractor shall furnish to the State of Arizona 
separate certificates for each subcontractor. All coverages for subcontractors shall 
be subject to the minimum requirements identified above.

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G. Approval:  Any modification or variation from the insurance requirements in any 
Intergovernmental Agreement must have prior approval from the State of Arizona 
Department of Administration, Risk Management Division, whose decision shall be 
final. Such action will not require a formal contract amendment, but may be made by 
administrative action. 
 
H. Exceptions:  In the event the Contractor or sub-contractor(s) is/are a public entity, 
then the Insurance Requirements shall not apply. Such public entity shall provide a 
Certificate of Self-Insurance. If the contractor or sub-contractor(s) is/are a State of 
Arizona agency, board, commission, or university then none of the above shall 
apply.