The agency remains accountable for its deployment: What remains true?
Indemnity can allocate financial risk, but it does not remove the agency’s accountability for its public-benefit deployment.
The question
A public-benefit agency’s contract gives a vendor broad indemnity for model errors. The agency still controls eligibility decisions and affected-person communications. What remains true?
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- The indemnity should be treated as evidence that deployment risks are adequately managed.Indemnity may support financial risk allocation, but it does not demonstrate suitability, controls, monitoring, or acceptable impacts.
- The agency’s accountability depends on whether the vendor caused the error.Causation may affect contractual remedies, but the agency remains accountable for decisions and communications it controls.
- The vendor assumes accountability because indemnity covers model errors.Indemnity allocates financial exposure or recourse; it does not transfer the agency’s operational accountability for eligibility decisions.
- The agency remains accountable for its deployment decisions. ✓Contractual risk allocation may affect recourse between parties, but outsourcing does not remove the agency’s accountability for its use.
The trap
Identify who controls the decision and affected-person interaction; that control remains important despite indemnity terms. How to remember it
Indemnity can allocate financial risk, but it does not remove the agency’s accountability for its public-benefit deployment.
How many of these would you get right?
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