5 Contractual Risk Mistakes Local Governments Can’t Afford to Make

Even well-intentioned contracts can open the door to risk—and the downstream impact can be significant. In this powerful and practical conversation, three public sector risk veterans walk through the most common (and avoidable) mistakes they’ve seen in government contracts—and what your agency can do to avoid them.

Watch the full replay below and scroll down for session highlights and actionable insights.

Meet the Experts

• Bob Marshburn – CEO, Certified Risk Managers LLC
  Expert witness and educator with 50+ years of experience in public agency risk transfer.

• Tamika Puckett – EVP, Protecdiv
  Former Chief Risk Officer with deep experience in municipal procurement and insurance compliance.

• Dean Coughenour – Retired Risk Manager, City of Flagstaff
  National speaker and 30-year veteran of municipal risk and safety operations.

Moderated by Ben Fogle, Head of Growth at Evident.

Why This Matters

Third-party contracts are the backbone of how cities, counties, and agencies get work done—but vague indemnity clauses, outdated insurance language, and siloed processes can leave governments exposed. And when coverage isn’t verified or risk isn’t transferred correctly, public entities often end up footing the bill.

Key Takeaways

1. Vague indemnity language can cost you millions.
Contracts must be tailored to each project’s risk profile—and indemnity clauses should always survive contract termination. As Bob shared: “Hoping and wishing is not an effective risk management strategy.”

2. Copy-pasting insurance requirements is risky business.
Applying the same template across every vendor or contract creates blind spots. Dean reminded us, “A yoga instructor shouldn’t need the same coverage as a construction crew.”

3. Verification is just as critical as the contract.
Tamika shared a real-world example of a vendor submitting fraudulent COIs across multiple contracts—only discovered through manual review. Without consistent monitoring, governments risk project delays, cost overruns, and uncovered claims.

4. Collaboration across departments is a must.
When legal, procurement, and risk teams operate in silos, contracts get pushed through with gaps. Tamika emphasized the importance of a centralized routing process and internal alignment on risk tolerance.

5. Evolving risks require evolving requirements.
From cyber liability to AI-driven exposures, coverage must keep pace with technology. As Tamika noted, “Most governments think cyber = data breach, but many vendors actually need Tech E&O coverage too.”

Real Examples Shared

• The Flint water crisis and gaps in environmental coverage

• A $5M construction site death that tested (and proved) smart indemnity language

• A fraudulent insurance case uncovered through risk team diligence

• Fireworks events, bounce houses, and helicopter Easter egg drops (yes, really)