In Section II of this manual, you learned how to perform a risk analysis of the potential risk associated with the services or goods being obtained through your contract. Once this is done, you have a better understanding of what kinds of insurance should be required in your contract in order to protect the County and the contractor from losses. Section III explained the various kinds of indemnification clauses used in contracts, to help you select one that would be best for the kind of RFP/bid/contract you are preparing.
Section IV has been organized to provide you with the following:
- An overview of the various kinds of insurance often asked for in RFPs/bids/contracts.
- A listing of eight common categories of contracts (section A) and the kind of insurance provisions and insurance limits that should normally be required. This will help you categorize your own RFP/bid/contract in order to determine what insurance-related provisions are needed.
- A listing of mandatory (section B) and additional insurance-related provisions (section C). These lists explain what each provision is used for and provides you with actual boilerplate language to insert into your RFP/bid/contract.
- A matrix (section D) that allows you to quickly scan what minimum insurance requirements you need for your RFP/bid/contract, based on the services or goods being obtained through the contract.
Once you have determined which category best applies to your contract, review the "Mandatory Provisions" and the "Additional Provisions" listed in this section beginning on Page IV-6. As you will see, each category requires all of the "Mandatory Provisions" with very few exceptions. The "Additional Provisions" that are required in the various categories are based on the type of services being provided in the contract.
After reviewing the "Mandatory Provisions" and "Additional Provisions" you should have a good understanding of the types and levels of insurance coverage you will be requiring in your RFP, bid and/or contract. The wording that is italicized is the actual boilerplate language you'll be inserting into the "insurance requirements" section of your contract. If you are using the "Multnomah County Services Contract" form that the Office of County Counsel developed, it has an exhibit that allows you to indicate basic insurance provisions required by checking the appropriate boxes on the exhibit.
For any unusual contracts, or ones for which you are having trouble determining what category and insurance limits best apply, please contact the Purchasing Section or Risk Management Division for assistance.
Sometimes the Contractor will indicate that their company is self-insured for some or all of the insurance coverage you are requesting. In this case, you must require them to complete a self-insurance certification (see Sample in Appendix D) and submit it to you as proof of insurance. You will need to review this form in accordance with the instructions contained in Appendix D. If the contractor is self-insured for all required insurance coverages, some of the mandatory provisions (for example, MP6) will not be relevant. If you need assistance in determining which provisions should be included, please contact Risk Management. Many, but not all, governments are self-insured for some or all required insurance coverages.
Before you accept self insurance from a non-government entity in lieu of regular insurance on any contract, you should consult Risk Management.
The types of liability insurance generally relevant to most County personal/professional services contracts are workers' compensation insurance, professional liability insurance, and general liability insurance. In some cases, automobile liability insurance is also important. Each of these types is discussed below.
Worker's Compensation Coverage
By state law, every employer employing one or more "subject workers" is required to provide workers' compensation coverage for those workers. Most of the Contractors the County contracts with for services will need to show proof of this coverage, which provides medical treatment and wage subsidy for work-related injuries of their employees. In County contracts, there may be some Contractors who are exempt from the requirement to provide this coverage as sole proprietors who qualify as independent contractors, partners who are not engaged in construction-related work and who qualify as independent contractors, and certain corporate officers who are directors of the corporation and have a substantial interest in the corporation. It is imperative that you obtain proof of workers' compensation coverage or exemption from the law prior to allowing work to begin under the contract; a failure to do so could mean that the County would be held responsible for the Contractor's workers' compensation claims and would have to pay the cost of these claims out of the County's self-insurance fund. Any Contractor claiming to be exempt must complete the Workers' Compensation Exemption Certificate (see Appendix B-4). See Appendix B, B-1 for information on workers' compensation insurance requirements for out-of-state Contractors.
Professional Liability Insurance
If the Contractor is providing services for which professional malpractice or liability insurance is available, you must consider requiring this coverage. This type of insurance is also known as professional "Errors and Omissions" insurance. Such insurance is available for most providers with advanced training beyond a bachelor's level degree, such as physicians, nurse practitioners, social workers, accountants, architects, engineers, and brokers. It covers professional errors made by such practitioners (for example, a misdiagnosis leading to damages) as opposed to problems with these services that might happen to any type of provider (for example, a fall on the office steps with injuries).
Commercial General Liability Insurance
Commercial General Liability Insurance, also sometimes called "comprehensive" or "general" liability insurance, is the type of insurance most comparable to your homeowner's policy. It normally covers personal injury and property damage. Policies may also include a provision covering "contractual liability." This provision is valuable if a Contractor's professional liability insurance does not cover liability assumed under a contract, for example, a duty to indemnify a third party such as a County agency. All Contractors should be required to carry commercial general liability insurance unless engaged in work which poses no risk to the County.
Automobile Liability Insurance
If the Contractor will be providing any sort of transportation to clients under the contract, the Contractor must be required to carry automobile liability insurance.
A. Categories of Contracts
The following categories (1 through 8) serve as a guide in determining what mandatory provisions, additional provisions and minimum insurance limits you may need to require in your contract.
These are the mandatory and additional provisions:
|
Mandatory |
Additional |
||
|
MP 1 |
Commercial General Liability |
ADD 1 |
Extended Reporting Coverage |
|
MP 2 |
Commercial Automobile Insurance |
ADD 2 |
Builder's Risk |
|
MP 3 |
Workers' Compensation Insurance |
ADD 3 |
Umbrella Liability Coverage |
|
MP 4 |
Additional Insurance Provision |
ADD 4 |
Professional Liability |
|
MP 5 |
Notice of Cancellation |
ADD 5 |
Garagekeepers' Legal Liability |
|
MP 6 |
Insurance Carrier Rating |
ADD 6 |
Aircraft Liability |
|
MP 7 |
Certificates of Insurance |
ADD 7 |
Aircraft/Aerial Application Liability |
|
MP 8 |
Independent Contractor Status |
ADD 8 |
Marine Protection and Liability |
|
MP 9 |
Primary Coverage Clarification |
ADD 9 |
Pollution and Asbestos Liability |
|
MP 10 |
Cross Liability Clause |
ADD 10 |
Employee Dishonesty and (when applicable) Money and Securities |
|
ADD 11 |
Waiver of Subrogation |
||
|
ADD 12 |
Bid Security Bond |
||
|
ADD 13 |
Performance and Payment Bonds |
||
|
ADD 14 |
Commercial General Liability -- Construction/Installation/Renovation |
||
Boilerplate contract language for each of these provisions is set out below beginning on page IV-6.
CATEGORY 1. Contracts providing Miscellaneous Services or Materials (excluding contracts providing Professional Services). These are contracts that have a low risk factor for the kind of services or materials being provided.
These contracts will vary widely as to their exposure to risk. While some discretion as to limits will be necessary with smaller contractors, all mandatory provisions are required.
|
All. Exception: Auto (MP2) can be waived if |
|
$500,000 Auto. (MP2) |
CATEGORY 2. Contracts providing Materials and Services (excluding contracts providing Professional Services). These are contracts that may have a significant risk factor for the kind of services or materials being provided.
A wide variance of risk will also be found in these contracts.
|
All. Exception: Auto (MP2) can be waived if delivery of goods or transportation of people is not being performed by contractor. |
|
ADD 3 if significant installation of goods involved; |
|
$500,000 Auto (MP2) |
CATEGORY 3. Contracts providing Professional Services.
Examples would include medical, engineering, accounting, architectural, counseling, and insurance services.
|
All. Exceptions: MP4 (Additional Insured Provision) does not apply to Professional Liability insurance, but does apply to other required insurance coverages. |
|
Auto (MP2) can be waived if contract performance entails no driving by the contractor. |
|
|
ADD 4, ADD 1. |
|
$500,000 Professional Liability per occurrence/$1,000,000/aggregate. |
|
$500,000 Professional Liability per occurrence/$1,000,000/aggregate. |
CATEGORY 4. Public Improvements/Buildings (Remodeling or Repair).
These contracts will usually deal with either remodeling or repair.
|
All, except replace MP1 with ADD 14. |
|
ADD 1, ADD 9 (if applicable). |
|
$500,000 Auto (MP2) An endorsement amending the aggregate limits of CGL insurance (per project) is required on projects exceeding $250,000. |
CATEGORY 5. New Construction (Buildings)*
|
All, except replace MP1 with ADD 14. |
|
ADD 1, ADD 2, ADD 3, ADD 12, ADD 13. |
|
$1,000,000 Auto (MP2) |
*Risk Management should be advised of any new construction. The County may decide to provide some level of coverage itself.
CATEGORY 6. Public Improvements/Non-Building (Roads, Bridges)
For insurance requirements in this category, the Oregon Department of Transportation (ODOT) manual guidelines are generally used. These are standard specifications for highway construction. In some cases, the County requires different levels of insurance limits. Please consult with the Purchasing Section or Risk Management for assistance, if needed.
CATEGORY 7. Facilities Use Agreements
Discretion must be used in requiring insurance from entities wishing to use County facilities. Significantly large users and/or higher risk uses must show the County adequate coverage.
|
All. Exception: MP2 (Automobile). |
|
ADD 11 (when County is Lessee only). |
|
:$500,000 CGL per occurrence/$500,000 aggregate (MP1). |
CATEGORY 8. Purchase Orders
Insurance will be required from vendors supplying the County with services under purchase orders.
|
|
|
All. Exception: MP2 (Automobile), unless services provided will be driving as part of work performed. |
|
ADD 4, ADD 1 -- if professional services are performed. |
|
$500,000 Auto (MP2) |
Equipment Rental or Lease Agreements
Often the vendor will require that the vendor's own agreement or contract be signed prior to taking possession of the piece of equipment. Normally, the indemnity clause is extremely broad in these agreements. Most of these equipment rental agreements require that the equipment be returned in the same condition as it was when it was rented.
The County's property insurance policy provides coverage for property in the County's care, custody, and control. This includes leased and rented equipment. The County's $250,000 property deductible applies. Coverage for any subcontractor activity is not included. (The County has no coverage for equipment rented by a contractor.) Equipment licensed for highway use is not covered for collision. Equipment used for fire fighting is not covered.
B. Mandatory Insurance Related Provisions
The following are "Mandatory Provisions." These provisions are to be included in the "insurance requirements" section of your contract. There are only a few situations where all of these provisions would not be required. These exceptions are outlined in the "CATEGORY" insurance requirements section (pages IV-3 - IV-6).
The supplied italicized language is what you will actually be inserting into the "insurance requirements" section of your contract.
MP 1. Commercial General Liability Insurance
This coverage protects against liability claims for bodily injury and property damage arising out of premises, operations, products and completed operations; and advertising and personal injury liability. This insurance is required in most of the RFPs, bids and contracts. Uses include: whenever Contractor will be doing work on County property, when the County could be partially blamed for damage or bodily injury caused by Contractor, and to provide financial support to keep Contractor in business if sued.
Contractor shall obtain, at Contractor's expense, and keep in effect during the term of this contract, Commercial General Liability Insurance covering Bodily Injury and Property Damage on an "occurrence" form. This coverage shall include Contractual Liability insurance for the indemnity provided under this contract. The following insurance will be carried:
MP 2. Commercial Automobile Insurance
To be required when the Contractor is providing any sort of transportation to clients under the contract or delivering goods.
Contractor shall also obtain, at Contractor's expense, and keep in effect during the term of the contract, "Symbol 1" Commercial Automobile Liability coverage including coverage for all owned, hired, and non-owned vehicles. The Combined Single Limit per occurrence shall not be less than $500,000.
MP 3. Workers' Compensation Insurance
The Contractor, its subcontractors, if any, and all employers providing work, labor or materials under this Contract who are subject employers under the Oregon Workers' Compensation Law shall comply with ORS 656.017, which requires them to provide workers' compensation coverage that satisfies Oregon law for all their subject workers. Out-of-state employers must provide workers' compensation coverage for their workers that complies with ORS 656.126. Employers' Liability Insurance with coverage limits of not less than $500,000 each accident shall be included.
This coverage endorsement is required to gain protection for the County on another party's policy. However, the County can't be named as an additional insured on professional and/or automobile liability insurance policies. On the certificate of insurance provided by the Contractor as proof of insurance coverage, "Multnomah County, its officers, directors, and employees" shall be listed as an additional insured. The certificate should not just list a specific County department as additional insured.
Multnomah County, its agents, officers, directors, officials and employees shall be added as additional insureds with respect to this job. All liability insurance policies, with the exception of professional and/or automobile liability policies, will be endorsed to show this additional coverage.
There shall be no cancellation, material change, exhaustion of aggregate limits or intent not to renew insurance coverage without 30-days written notice to Multnomah County Contract Administration Section. Any failure to comply with this provision will not affect the insurance coverage provided to the County. The 30-days notice of cancellation provision shall be physically endorsed on to the policy.
MP 6. Insurance Carrier Rating
Coverages provided by the Contractor must be underwritten by an insurance company deemed acceptable by the County. Insurance coverage shall be provided by companies admitted to do business in Oregon or, in the alternative, rated A- or better by Best's Insurance Rating. The County reserves the right to reject all or any insurance carrier(s) with an unacceptable financial rating.
MP 7. Certificates of Insurance
As evidence of the insurance coverage required by this contract, the contractor shall furnish a Certificate of Insurance to Multnomah County. No contract shall be effected until the required certificates have been received and approved by the County. The certificate will specify and document all insurance-related provisions within this contract. A renewal certificate will be sent to Multnomah County Contract Administration Section 10 days prior to coverage expiration.
MP 8. Independent Contractor Status
The service or services to be rendered under this contract are those of an independent contractor. Contractor is not an officer, employee or agent of Multnomah County as those terms are used in ORS 30.265.
MP 9. Primary Coverage Clarification
All parties to this contract hereby agree that the Contractor's coverage will be primary in the event of a loss.
MP 10. Cross-Liability Clause
Liability claims by one insured against another insured (both named as insureds in the same policy) are usually referred to as "cross liability" claims. There is a condition in a Commercial General Liability (CGL) policy which allows for the policy to provide protection against a claim by one insured (like the named insured, for example, the Contractor) against another insured (like an additional insured, for example, the County). This is the "Separation of Insureds" condition. It specifies the insureds' protection under the policy as if each had a separate policy, with the exception of the limits of liability and any rights or duties that are designated to be for the first named insured only. A CGL policy incorporates this kind of coverage in the policy, but this change is necessary to provide coverage under other policies required.
C. Additional Insurance-Related Provisions
A cross-liability clause or separation of insureds condition will be included in all general liability, professional liability, pollution and errors and omissions policies required by this contract.
ADD 1. Extended Reporting Coverage ("Tail Coverage")
This insurance extends coverage after a "claims made" policy term has ended. "Claims made" policy means that any claim under the policy must be reported during the policy period.
If any of the aforementioned liability insurance is arranged on a "claims made" basis, Extended Reporting coverage will be required at the completion of this contract for a duration of 24 months or the maximum time period the Contractor's insurer will provide such if less than 24 months. Contractor will be responsible for furnishing certification of Extended Reporting coverage as described or continuous "claims made" liability coverage for 24 months following contract completion. Continuous "claims made" coverage will be acceptable in lieu of Extended Reporting coverage, provided its retroactive date is on or before the effective date of this contract. This will be a condition of the Final Acceptance of Work or Services and Related Warranty (if any).
ADD 2. Builder's Risk
This provision addresses the loss of or damage to a County building, construction supplies, or construction equipment during new construction. Sometimes the County elects to cover construction supplies and the building during construction under the County's property insurance policy, but this decision must be made jointly by Facilities Management and Risk Management prior to the development of the construction contract or RFP. If the County elects to provide this coverage, "Builders' Risk-Owner" provision should be inserted into the contract; if the County does not provide coverage, the "Builders' Risk-Contractor" provision should be used.
A. Owner
Unless otherwise provided, the Owner shall purchase and maintain property insurance upon the entire Work at the site to the full insurable value thereof subject to the deductible provided for below. This insurance shall include the interests of Owner, the Contractor, Subcontractors, and Sub-subcontractors in the Work and shall insure against the perils of fire and extended coverage and shall include "all risk" insurance of physical loss or damage including, without duplication of coverage, theft, vandalism or malicious mischief. If the Owner does not intend to purchase such insurance for the full insurable value of the entire Work, Owner shall inform the Contractor in writing prior to commencement of the Work. The Contractor may then effect insurance which will protect the interests of Contractor, any Subcontractors and the Sub-subcontractors in the Work, and by appropriate Change Order the cost thereof shall be charged to the Owner. If the Contractor is damaged by failure of the Owner to purchase or maintain such insurance and to so notify the Contractor, then the Owner shall bear all reasonable costs properly attributable thereto If not covered under the all risk insurance otherwise provided in the Contract Documents, the Contractor shall effect and maintain similar property insurance on portions of the Work stored off the site or in transit. Contractor's tools, materials, equipment, appliances and all other facilities and incidentals required by this project will not be insured by the Owner.
B. Contractor
Contractor shall obtain, at Contractor's expense, and keep in effect until final acceptance by the County, Builder's Risk Insurance (including earthquake and flood) covering the real and personal property of others in the care, custody, and control of the contractor. Coverage shall include theft and damage to building interiors. The minimum amount of coverage to be carried shall be equal to the full amount of the contract. Contractor shall be financially responsible for any deductible applied to loss. This insurance shall include Multnomah County, the Contractor and its subcontractors as their interests may appear.
ADD 3. Umbrella Liability Coverage
To be required when there is an activity which could result in catastrophic bodily injury or property loss (for example, major building renovation or new construction) and the basic limits of insurance may not be sufficient. Call Risk Management for assistance with this coverage.
Umbrella coverage in the sum of $_______ shall be provided and will apply over all liability policies, without exception, including but not limited to Commercial General Liability, Automobile Liability, Employers' Liability, and Professional Liability.
ADD 4. Professional Liability
Professional Liability insurance is also called Errors and Omissions insurance. If this insurance is arranged on a "claims-made" basis, Extended Reporting coverage will be required (please see ADD 1).
Contractor shall obtain, at Contractor's expense, and keep in effect during the term of this contract, Professional Liability Insurance covering any damages caused by an error, omission or any negligent acts. Combined single limit per occurrence shall not be less than $500,000, or the equivalent. Annual aggregate limit shall not be less than $1 million.
ADD 5. Garagekeepers' Legal Liability
This wording should be used when a subcontractor will be taking possession of County vehicles or acting as a bailee in some manner relating to County vehicles.
Contractor shall obtain, at Contractor's expense, and keep in effect during the term of this contract, Garagekeepers' Legal Liability Insurance. Combined single limit per occurrence shall not be less than $500,000.
ADD 6. Aircraft Liability
Any Contractor using owned or non-owned aircraft for County contracts should carry this specific coverage.
Contractor shall obtain, at Contractor's expense, and keep in effect during the term of this contract, Aircraft Liability Insurance. Combined single limit per occurrence shall not be less than $500,000, and no less than $1,000,000 per seat for passenger liability.
ADD 7. Aircraft/Aerial Application Liability
Aircraft used in pesticide or chemical application should carry this coverage, which must also include Pollution Liability Insurance.
Contractor shall obtain, at Contractor's expense, and keep in effect during the term of this contract, Aircraft/Aerial Application Liability Insurance covering the operations of each aircraft and including claims arising from spraying operations. Combined single limit per occurrence shall not be less than $500,000, or the equivalent.
ADD 8. Marine Protection and Liability
For any contract involving the use of watercraft of any type.
Contractor shall obtain, at Contractor's expense, and keep in effect during the term of this contract, Marine Protection and Indemnity Insurance. Collision and Jones Act coverages shall be included. Combined single limit per occurrence shall not be less than $500,000, or the equivalent.
ADD 9. Pollution and Asbestos Liability
This is a broad coverage requirement when a subcontractor is involved in any activity which may involve the transport, application, disposal, use, or handling of "Hazardous Material." Most Contractors do not carry pollution or asbestos liability coverage. This does not mean that the County will not require it. Discretion must be used in the application of this provision. A decision not to require this coverage must be made in consultation with Risk Management.
If hazardous material is encountered during construction, the Project Manager must be notified immediately, and if any work is done to remove it, any Contractor performing work shall obtain and keep in effect during the term of their contract w/Contractor, Pollution Liability Insurance, including Asbestos Liability Insurance, covering the subcontractor's liability for bodily injury, property damage, and environmental damage resulting from "sudden accidental" or "gradual" pollution and related cleanup costs incurred by the subcontractor, all arising out of the work or services (including the transportation risk, when applicable) to be performed under this contract. Combined single limit per occurrence shall not be less than $500,000, or the equivalent. Annual aggregate limit shall not be less than $1,000,000.
ADD 10. Employee Dishonesty and (when applicable) Money and Securities
Should be required when the Contractor and/or Contractor's employees will have access to medium or large amounts of County cash receipts, negotiable securities, or especially valuable property. A standard limit should equal or exceed the maximum amount of cash, negotiable securities or valuable property at risk at any time. You should require a larger limit if the Contractor and/or Contractor's employees would have multiple opportunities to steal before the County's loss would be discovered. You can require a smaller limit if the Contractor and/or Contractor's employees will have limited access to cash, negotiable securities, or valuable property, or if the contact they have with cash, negotiable securities or valuable property is supervised by the County at all times.
Contractor shall obtain, at Contractor's expense, and keep in effect during the term of the contract, Employee Dishonesty and (when applicable) Inside/Outside Money and Securities coverages for County-owned property in the care, custody and control of the contractor. Coverage limits shall not be less than the amount(s) scheduled in the Request for Proposal.
ADD 11. Waiver of Subrogation
This language should be used when the County is a tenant of a building and should be incorporated in the lease agreement.
Neither the lessor nor the lessee shall be liable to the other for loss arising out of damage to or destruction of the leased premises, or the building or improvements of which the leased premises are a part or with which they are connected, or the contents leased any thereof, when such loss is caused by any of the perils which are or could be included within or insured against by a standard form of fire insurance with extended coverage, including sprinkler leakage insurance, if any. All such claims for any and all loss, however caused, hereby are waived. Such absence of liability shall exist whether or not the damage or destruction is caused by the negligence of either lessor or lessee or by any of their respective agents, servants or employees. It is the intention and agreement of the lessor and the lessee that the rental reserved by this lease have been fixed in contemplation that each party shall fully provide his own insurance protection at his own expense, and that each party shall fully provide his own insurance protection at his own expense, and that each party shall look to his respective insurance carriers for reimbursement of any such loss, and further, that the insurance carriers shall not be entitled to subrogation under any circumstance against any party to this lease. Neither the lessor nor the lessee shall have any interest or claim in the other's insurance policy of policies, or the proceeds thereof, unless specifically covered therein as a joint assured.
ADD 12. Bid Security Bond
This bond can protect the County if the Contractor makes a mistake in bidding the project. If the Contractor leaves out an important portion of the project in the bid, and the bid is subsequently accepted, the surety would be obligated to pay the difference between what was bid and the actual cost to complete the project.
Each bid shall be accompanied by a Bid Security in an amount of 10% of the Bid, including additive Alternatives, if any, in the required form and amount, pledging that the Bidder will enter into a Contract with the County on terms stated in their Bid. Should the Bidder refuse to enter into such Contract or fail to furnish such Bonds of Insurance Certificates, the amount of the Bid Security shall be forfeited to the County as liquidated damages, not as a penalty.
The Bid Security shall be in the form of a Surety Bond, a Cashier's Check or a Certified Check made payable to the County. The Surety Bond shall be written by a Bonding Company deemed acceptable by the County. The Attorney-in-Fact who executes the Bond on behalf of the Surety shall affix to the Bond a certified and current copy of the Power of Attorney. The County will have the right to retain the Bid Security of Bidders until either (a) the Contract has been executed and Bonds have been furnished, or (b) the specified time has elapsed so that bids may be withdrawn, or (c) all Bids have been rejected.
ADD 13. Performance and Payment Bonds
To be required for all Public Improvement contracts over $25,000 except in the case of an emergency or if the Performance Bond has been exempted. A Performance Bond is the key bond on a work project when the County not only wants the work completed but wants it done on time and according to specifications. The Payment Bond guarantees that suppliers of labor or materials or subcontractors will be paid.
Prior to the execution of the Contract, the successful Bidder shall furnish to the County the required, original, Performance and Payment Bonds, issued by an A-rated surety company, authorized to do business in the state of Oregon. The Bonds shall be executed by an authorized Attorney-in-Fact for the surety company and his/her original or certified copy Power of Attorney must be attached to the bond(s). Premiums for bonds shall be paid by the successful Bidder.
ADD 14. Commercial General Liability - Construction/Installation/Renovation
Higher limits on both an occurrence and an aggregate basis may be appropriate based on job size and degree of hazard involved.
Contractor shall obtain, at Contractor's expense, and keep in effect during the term of this contract, Commercial General Liability Insurance covering Bodily Injury and Property Damage on an "occurrence" basis. This coverage shall include Contractual Liability insurance for the indemnity provided under this contract. Coverage shall be provided for all "xcu" (explosion, collapse, and underground) hazards. The following limits of insurance will be carried:
|
Coverage |
Limit |
|
General Aggregate |
* $1,000,000 |
|
Products-Completed Operations Aggregate |
$1,000,000 |
|
Personal & Advertising Injury |
$1,000,000 |
|
Each Occurrence |
$1,000,000 |
|
Fire Damage (Any One Fire) |
$50,000 |
|
Medical Expense (Any One Person) |
$5,000 |
|
Employers' Liability |
$100,000 |
|
* Aggregate limits are to apply on a per project basis. |
D. Minimum Insurance Requirements for Contractors
All contracts must contain an indemnification clause and workers' compensation language (insurance or proof of exemption). The following minimum limits of insurance are on a "per occurrence" basis. Aggregate limits are listed in detail in Section IV.
|
Reason for Contract |
Category # |
Commercial |
Auto |
Professional |
Additional Provisions; See Section IV |
|
Busses/Cabs |
1 |
500,000 |
500,000 |
--- |
No |
|
Construction, new |
5 |
1,000,000 |
1,000,000 |
--- |
Yes |
|
Construction (over $50,000) |
4 or 5 |
1,000,000 |
1,000,000 |
--- |
Yes |
|
Construction (under $50,000) |
4 |
500,000 |
500,000 |
--- |
No |
|
Consulting Services/ |
1 |
500,000 |
500,000 |
--- |
No |
|
Consulting Services/ |
3 |
500,000 |
500,000 |
500,000 |
Yes |
|
Design Services (under $50,000) |
3 |
500,000 |
500,000 |
500,000 |
Yes |
|
Design Services (over $50,000) |
3 |
1,000,000 |
500,000 |
1,000,000 |
Yes |
|
Engineers |
3 |
1,000,000 |
500,000 |
1,000,000 |
Yes |
|
Equipment/ |
1 |
500,000 |
--- |
--- |
No |
|
Janitorial |
1 |
500,000 |
500,000 |
--- |
No |
|
Landscaping |
1 |
500,000 |
500,000 |
--- |
No |
|
Non-Professional Services (direct services) |
1 |
500,000 |
500,000 |
--- |
No |
|
Professional Services |
3 |
500,000 |
500,000 |
500,000 |
Yes |
|
Public Improvements/ |
6 |
1,000,000 |
500,000 |
--- |
Yes |
|
Repair Work/Low Risk Service |
1 |
500,000 |
500,000 |
--- |
No |
|
Security Services |
2 |
1,000,000 |
500,000 |
--- |
No |
|
Facilities Use Agreements |
7 |
500,000 |
--- |
--- |
Yes |
|
Purchase Orders used to procure services/ professional services |
8 |
500,000 |
*500,000 |
500,000 (if professional services) |
Yes |
*See Section IV for exceptions.