5.2
Insurance Requirements
The Contractor shall carry insurance in the types and amounts indicated in this Article for the
duration of the Contract. The required insurance shall include coverage for Owner’s property in
the care, custody and control of Contractor prior to construction, during construction and during
the warranty period. The insurance shall be evidenced by delivery to the Owner, certificates of
insurance executed by the insurer or its authorized agent stating coverages, limits, expiration
dates and compliance with all applicable required provisions. Upon request, the Owner, and/or
its agents, shall be entitled to receive without expense, copies of the policies and all
endorsements. The Contractor shall update all expired policies prior to submission for monthly
payment. Failure to update policies shall be reason for withholding of payment until renewal is
provided to Owner.
5.2.1.
The Contractor will provide and maintain the insurance coverage with the minimum
amounts described below until the end of the warranty period unless otherwise stated in
Supplementary General Conditions. Failure to maintain insurance coverage, as required, is
grounds for Suspension of Work for Cause pursuant to Article 14. The Contractor will be
notified of the date on which the Builder’s Risk insurance policy may be terminated
through Substantial Completion Notices, Acceptance Notices and/or other means as
deemed appropriate by the Owner.
5.2.2.
Coverage shall be written on an occurrence basis by companies authorized and admitted to
do business in the State of Texas and rated A- or better by A.M. Best Company or
otherwise acceptable to Owner.
5.2.2.1. Insurance coverage required includes:
5.2.2.1.1.
Workers’ Compensation. Insurance with limits as required by the Texas
Workers’ Compensation Act, and Employer’s Liability insurance of not less
than:
$1,000,000 each accident/employee
$1,000,000 each disease/employee
$1,000,000 policy limit by disease
Policy must include (a) Other States endorsement to include TEXAS if
business is domiciled outside the State of TEXAS, and (b) a waiver of all
rights of subrogation in favor of the Owner.
5.2.2.1.2.
Commercial General Liability Insurance. Including Independent
Contractor’s liability, Products and Completed Operations and Contractual
Liability, covering, but not limited to, the liability assumed under the
indemnification provision of this contract, fully insuring Contractor’s (or
Subcontractor’s) liability for bodily injury and property damage with a
combined bodily injury (including death) and property damage minimum
limit of:
$5,000,000 per occurrence/all insured
$2,000,000 personal injury and advertising injury limit
$5,000,000 completed operations aggregate/all insured
Coverage shall be on an “occurrence” basis
The policy shall include coverage extended to apply to completed operations
and explosion, collapse, underground hazards. The policy shall include
endorsement CG2503 Amendment-Aggregate Limits of Insurance (Per
Project) or its equivalent. If applicable, the policy must delete any
“x”explosion, “c”collapse, “u”underground and any subsidence exclusions.
Any “railroad exclusion” if pertaining to the scope of this work shall be
deleted. The policy shall be endorsed to provide, (a) that the Owner is
additional insured (using endorsement CG 20 33 07 04) for ongoing
operations and completed operations and (endorsement CG 20 37 07 04) (b)
that the insurance afforded to Contractor is primary and any other insurance
in force for Owner will be excess and will not contribute to the primary
policies. The policies shall contain a severability of interest provision.
Defense expenses shall be outside and in addition to any policy limit. The
policies shall be endorsed to include a per project aggregate for ongoing
operations. The CGL form shall be written on ISO Occurrence form CG 00
01 12 04 or equivalent. Coverages shall be maintained for at least 3 years
after acceptance of the work.
Per occurrence limit may be obtained under the umbrella coverage.
5.2.2.1.3.
Pollution Liability Insurance, covering the scope of the Contractor’s work
including all site activities, loading and unloading, transit for all owned and
non-owned autos including all sub tier activities, including subcontractors or
independent operators acting on their behalf, and coverage is to apply at all
non-owned waste sites with a limit of at least $10,000,000 each
occurrence/aggregate. Coverages shall be maintained for at least 10 years
after the work. Should the policy be claims-made, the retro date must be on
or before the agreement date or when any good or services were provided by
the subcontractor, whichever is earlier.
5.2.2.1.4.
Comprehensive Automobile Liability Insurance, covering owned, hired, and
non-owned vehicles, with a combined bodily injury (including death) and
property damage minimum limit of $10,000,000 per occurrence. No
aggregate shall be permitted for this type of coverage. Limit may be
obtained under the umbrella coverage.
Such insurance is to include pollution liability coverage for any vehicle
hauling cargo containing pollutants or contaminants. Policy must be
endorsed to add Owner, as additional insureds and provide waiver of
subrogation in favor of the Contractor and Owner.
Coverage must include MCS-90 endorsement to cover the transport of high
explosives. The MCS-90 endorsement must be carried by the blaster,
transporter or both.
5.2.2.1.5.
“Umbrella” Liability Insurance. The Contractor shall obtain, pay for and
maintain umbrella liability insurance during the contract term, insuring the
Contractor (or Subcontractor) for an amount of not less than $10,000,000
each occurrence/aggregate and applies in excess and follows form of the
primary liability coverages required hereinabove (5.2.2.1.1 – employer’s
liability, 5.2.2.1.2 – general liability, and 5.2.2.1.4 – auto liability). The
policy shall provide “drop down” coverage where underlying primary
insurance coverage limits are insufficient or exhausted. Coverage shall be
maintained for at least 3 years after acceptance of the work.
5.2.3.
5.2.2.1.6.
Professional Liability Insurance. If applicable, professional liability
covering the acts or omissions of the subcontractor’s professional services, or
others acting on their behalf with a limit of at least $5,000,000 each
occurrence/aggregate. Owner shall be provided a waiver of subrogation in
favor of Owner. Coverages shall be maintained for at least 3 years after the
work. Should the policy be claims-made, the retro date must be on or before
the agreement date or when any professional services were provided by the
subcontractor, or others acting on their behalf whichever is earlier.
5.2.2.1.7
In addition to the above stated insurance requirements, the implosion
subcontractor must provide the following endorsements/inclusions: Full
indemnification of the owner including their sole negligence; waiver of
subrogation; additional insured status; alternative employer’s endorsement;
copies of all policies; including evidence that explosive
demolition/contractual blasting is not excluded; primary and noncontributory coverage; deletion of asbestos exclusion from Contractor’s
Pollution Liability Policy; 100% Performance Bond; and 100% labor and
Material Payment Bond.
Policies must include the following clauses, as applicable:
5.2.3.1 This insurance shall not be canceled, materially changed, or non-renewed until after
thirty (30) days prior written notice has been given to the Owner.
5.2.3.2. It is agreed that the Contractor’s insurance shall be deemed primary with respect to any
insurance or self-insurance carried by the Owner for liability arising out of operations
under the Contract with the Owner.
5.2.3.3. The Owner, its officials, directors, employees, representatives, and volunteers are
added as additional insureds as respect to operations and activities of, or on behalf of
the named insured performed under contract with the Owner. The additional insured
status must cover completed operations as well. This is not applicable to the workers’
compensation policy. The workers’ compensation, employers’ liability, automobile
liability, general liability, umbrella liability and pollution liability policies will provide
a waiver of subrogation in favor of the Owner.
5.2.4.
Without limiting any of the other obligations or liabilities of the Contractor, the Contractor
shall require each Subcontractor performing work under the Contract, at the
Subcontractor’s own expense, to maintain during the term of the Contract, the same
stipulated minimum insurance including the required provisions and additional policy
conditions as shown above. As an alternative, the Contractor may include its
Subcontractors as additional insureds on its own coverage as prescribed under these
requirements. The Contractor’s certificate of insurance shall note in such event that the
Subcontractors are included as additional insureds and that Contractor agrees to provide
Workers’ Compensation for the Subcontractors and their employees. The Contractor shall
obtain and monitor the certificates of insurance from each Subcontractor in order to assure
compliance with the insurance requirements. The Contractor must retain the certificates of
insurance for the duration of the Contract plus 5 years and shall have the responsibility of
enforcing these insurance requirements among its subcontractors. The Owner shall be
entitled, upon request and without expense, to receive copies of these certificates.
5.2.5.
Keep the Same.