Scope

Required for all major construction projects and those that involve many subcontractors.

Insurance

Contractor shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property, which may arise from or in connection with the performance of the work here-under by the contractor, his agents, representatives, employees or subcontractors.

Minimum Scope of Insurance

Coverage shall be at least as broad as:

• Insurance Services Office Commercial General Liability coverage (with the CG 0001, or insurer's equivalent endorsement provided to the District.)
• Insurance Services Office form number CA 0001 covering Automobile Liability, code 1 (any auto).
• Worker’s Compensation insurance as required by the State of California and Employer’s Liability insurance. If no employees are utilized, the contractor shall sign a declaration as described in California Health and Safety Code Section 19825.
• Coverage shall not extend to any indemnity coverage for the active negligence of the additional insured in any case where an agreement to indemnify the additional insured would be invalid under Subdivision (b) of Section 2782 of the Civil Code.
• Course of Construction insurance covering for “all risks” of loss.

Minimum Limits of Insurance

• General Liability: $5,000,000 per occurrence for bodily injury, personal injury and property damage including operations, products and completed operations. If Commercial General Liability Insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit.
• Automobile Liability: $5,000,000 per accident for bodily injury and property damage.
• Workers' Compensation statutory limit and Employer’s Liability: $1,000,000 per accident for bodily injury or disease.

Other Insurance Provisions

The Commercial General Liability and Automobile Liability policies are to contain, or be endorsed to contain, the following provisions:

• The Town, its officers, officials, employees and volunteers are to be covered as insured’s as respects: liability arising out of work or operations as performed by or on behalf of the contractor; or automobiles owned, leased, hired or borrowed by the contractor.
• For any claims related to this project, the contractor's insurance coverage shall be primary insurance as respects the Town, its officers, officials, employees and volunteers. Any insurance or self-insurance maintained by the Town, its officers, officials, employees or volunteers shall be in excess of the contractor's insurance and shall not contribute with it and shall be at least as broad as CG 20 01 04 13.  
• Any Failure to comply with reporting or other provisions of the policies including breaches of warranties shall not affect coverage provided to the Town, its officers, officials, employees, agents or volunteers.
• 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. 
• Each insurance policy required by this clause shall be endorsed to state that coverage shall not be canceled by either party, unless thirty (30) days prior written notice by certified mail, return receipt requested, has been given to the Town.
• The Worker’s Compensation policy is to be endorsed with a waiver of subrogation. The insurance company, in it’s endorsement, agrees to waive all rights of subrogation against the Town, its officers, officials, employees and volunteers for losses paid under the terms of this policy which arises from the work performed by the named insured for the Town.

Coverage shall not extend to any indemnity coverage for the active negligence of the additional insured in any case where an agreement to indemnify the additional insured would be invalid under Subdivision (b) of Section 2782 of the Civil Code.

Course of Construction policies shall contain the following provisions:

• The Town shall be named as loss payee.
• The insurer shall waive all rights of subrogation against the Town.

Deductibles and Self-Insurance Retentions

Any deductibles or self-insured retentions must be declared to and approved by the Town. At the option of the Town, either: the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the Town, its officers, officials, employees and volunteers, or the contractor shall provide a financial guarantee satisfactory to the Town guaranteeing payment of losses and related investigations, claim administration and defense expenses.

Policies containing any self-insured retention (SIR) provision shall provide or be endorsed to provide that the SIR may be satisfied by either the Contractor or the Town.  The Town reserves the right to obtain a full certified copy of any Insurance policy and endorsements.  Failure to exercise this right shall not constitute a waiver of right to exercise later. 

Acceptability of Insurers

Insurance is to be placed with insurers with a current A.M. Best's rating of no less than A:VII, unless otherwise acceptable to the Town

Verification of Coverage

Contractor shall furnish the Town with original certificates and amendatory endorsements effecting coverage required by this clause. The endorsements should be on forms provided by the Town or on other than the Town's forms provided those endorsements conform to the Town’s requirements. All certificates and endorsements are to be received and approved by the Town before work commences. The Town reserves the right to require complete, certified copies of all required insurance policies, including endorsements affecting the coverage required by these specifications at any time

Subcontractors

Contractor shall include all subcontractors as insureds under its policies or shall furnish separate certificates and endorsements for each subcontractor. All coverages for subcontractors shall be subject to all of the requirements stated herein.

Contractor agrees to include with all subcontractors in their subcontract the same requirements and provisions of this agreement including the indemnity and Insurance requirements to the extent they apply to the scope of the subcontractor's work.  A copy of the Owner Contract Document Indemnity and Insurance provisions will be furnished to the subcontractor upon request.  The Contractor shall require all subcontractors to provide a valid certificate of insurance and the required endorsements included in the agreement prior to commencement of any work and contractor will provide proof of compliance to the Town. 

Subcontractor further agrees to include the same requirements and provisions of this agreement, including the indemnity and Insurance requirements, with any sub-subcontractor to the extent they apply to the scope of the sub-subcontractor's work.  A copy of the Town Contract Document Indemnity and Insurance provisions will be furnished to the subcontractor upon request.