2-Insurance Requirements - Risk Type 2 - Construction.pdf

All bids, written or verbal quotes, RFP, RFQ, agreements, contracts, purchase orders and proposals providing for services to the Town. Major construction is defined as those services involving renovation, remodeling to existing buildings, additions or new vertical construction and all projects within the capital improvement plan.

The contractor shall provide at its own cost and expense during the life of the contract, the following insurance coverages to the Town of Palm Beach (30) thirty business days prior to the commencement of any work. All contractors including any independent contractors and subcontractors utilized must comply with these requirements. All insurance policies shall be issued by companies authorized to do business under the laws of the State of Florida. The insurance shall be evidenced by certificates and/or policies to include premiums as determined by the Town of Palm Beach. It shall be an affirmative obligation upon the Service Provider to advise Ebix, the Town’s insurance certificate management service provider, at townofpalmbeach@ebix.com; P.O. Box 100085-HM, Duluth, GA 30096 within 24 hours or the next business day of cancellation, non-renewal or modification of any stipulated insurance and failure to do so shall be construed to be a breach of this agreement/contract. The Town of Palm Beach reserves the right to require additional insurance coverages and limits based upon the particular service or change order requested by the contractor.

If the contractor maintains higher limits than the minimums shown below, the Town requires and shall be entitled to coverage for the higher limits maintained by the contractor.

Comprehensive General Liability Insurance coverage with limits of liability not less than $5,000,000 Each Occurrence/$10,000,000 Aggregate or a per project aggregate of $5,000,000. The Certificate of Insurance shall indicate an Occurrence Basis. The Town of Palm Beach shall be endorsed as an additional insured under the General Liability including Completed Operations coverage. Products & completed operations coverage to be provided for a minimum of 10 years from the date of possession by owner or completion of contract. A waiver of subrogation shall be in the favor of the Town. The contractor’s General Liability coverage shall be primary and non-contributory.

For policies written on a Claims-made basis, service provider shall maintain a retroactive date prior to or equal to the effective date of the contract. In the event the policy is canceled, non-renewed, switched to an occurrence form or there is a change in retroactive date, or any other event triggering the right to purchase a Supplemental Extended Reporting Period (SERP) during the life of this contract, the service provider shall agree to purchase a SERP with a minimum reporting period of not less than three (3) years.

Coverage is to apply on a primary basis.

This insurance shall indicate on the certificate of insurance the following coverages:

a. Premises-Operation

b. Independent Contractor and Subcontractors

c. Products and Completed Operations

d. Broad Form Contractual

Contractors Pollution Liability coverage may be required depending on scope of services.

Professional Liability. Architects and engineers must maintain professional liability or equivalent errors & omissions liability with limit of not less than $1,000,000 per occurrence. For policies written on a claims made basis, architect or engineer shall maintain a retroactive date prior to or equal to the effective date mailto:townofpalmbeach@ebix.com of this contract. In the event the policy is canceled, non-renewed, switched to an occurrence form or there is a change in retroactive date, architect or engineer must purchase an extended reporting period rider during the life of this contract of not less than 3 years. Coverage is to apply on a primary basis.

Business Auto Liability coverage for any auto (all owned, hired, and non-owned autos) with limits not less than $1,000,000 each occurrence combined single limit each accident.

Workers' Compensation coverage with statutory limits pursuant to Florida State Statute 440. Should the scope of work performed by contractor qualify its employee for benefits under federal workers’ compensation statute (example, U.S. Longshore & Harbor Workers Act or Merchant Marine act), proof of appropriate federal act coverage must be provided. A waiver of subrogation must be provided.

Employers Liability coverage with limits not less than $100,000 for each accident, $100,000 disease (each employee) and $500,000 disease (policy limit).

If Builder’s Risk coverage is required, the Town shall obtain the coverage through their insurance agent at 100% of the estimated completion value. The contractor shall provide a completed Builder’s Risk application, which will be provided by the Town’s insurance agent, in addition to the following:

1. Draw schedule or construction timeline

2. Breakdown of Hard costs (from GMP), if applicable vs. Soft costs

3. Diagram or plot plan

4. Geo/Soil testing report

The above information and Builder’s Risk application must be provided to the Risk Manager at least 30 days in advance of commencement of any work in order for the Builder’s Risk policy to be obtained. The cost of the Builder’s Risk policy shall be included as a line item in the project budget by the Public Works Department.

If any of the property or casualty insurance requirements are not complied with at their renewal dates, payments to the Contractor will be withheld until those requirements have been met or at the option of the Town, the Town may pay the renewal premium and withhold such payments for any monies due the contractor.

All property losses shall be payable to and adjusted with the Town.

In the event that claims in excess of the insured amounts provided herein are filed by reason of any operations under the contract, the amount excess of such claims or any portion thereof may be withheld from any payment due or to become due the Contractor until such time the Contractor shall furnish such additional security covering such claims as may be determined by the Town of Palm Beach.

All policies and certificates of insurance of the Contractor shall contain the following clauses:

1. Insurers shall have no right of recovery or subrogation against the Town (including its agents, officers, past and present employees, elected officials and representatives), it, being the intention of the parties, the insurance policy in effect shall protect both parties and be the primary coverage and non-contributory for any and all losses covered by the above described insurance.

2. The clause “other insurance provisions” in a policy in which the Town is endorsed as an additional insured shall not apply to the Town, its agents, officials, past and present employees, elected officials and representatives if these provisions conflict with or otherwise limit the obligations of the contractor under the terms of this agreement.

3. Insurance companies issuing the policy or policies shall have no recourse against the Town, (including its agents, officers, past and present of any premiums or assessments under any form of policy.

4. Any and all deductibles or self-insured retentions in the above described insurance policy shall be assumed by and be for the account of and at the sole risk of the contractor. The amount of the deductible or self-insured retention must be accepted by the Town Manager.

Umbrella or Excess Liability is required up to the minimum limit of liability if the limits of liability shown on the Certificate of Insurance under General Liability do not meet the minimum limit of liability as required.

Damage to Persons or Property:

The Contractor shall at all times guard against damage or loss to the property of the Town of Palm Beach, other contractors, and other parties including, without limitation, Town residents and the general public, and shall be responsible for repairing, replacing or otherwise satisfying in full all claims for loss or damage which may be claimed to have been caused during the contract performance (“Contractor Damage Claims”). The Contractor Damage Claims shall be settled directly by the Contractor within fourteen (14) business days of receipt of the claim or shall be submitted to the Contractor’s insurance carrier(s) within five (5) business days from receipt of claim being filed with the Contractor and in the event, the insurance carrier determines liability on the Contractor, the claim for such damage shall be paid within thirty (30) days of such determination by the contractor’s insurance carrier.

Claims status shall be an item which is placed on every agenda for the periodic progress meetings between the Project Engineer/Project Manager and the Contractor. In addition, Contractor shall provide the Town with a written status report for any new or outstanding Contractor Damage Claims submitted with every pay request. The name, title, phone number, e-mail address and mailing address of the Contractor’s representative responsible for handling Contractor Damage Claims shall also be provided with every pay request. Should there be no new or outstanding Contractor Damage Claims the contractor shall state the same in the required written status report.

The Town may withhold payment or make such deductions as the Town deems necessary or appropriate, to insure prompt reimbursement, repair or replacement of loss or damage to persons or property in the settlement of Contractor Damage Claims resulting from the actions of Contractor, Contractor’s subcontractors, sub subcontractors, from material men and suppliers of any tier and their employees and agents.

The responsibility for all damages to person or property arising out of or on account of the Work done under this Contract shall rest on the Contractor and the Contractor shall indemnify the Town and others as provided by the provisions of contract.

The foregoing provisions of this contract are for protection of the Town are not intended to, and shall not inure to the benefit of any actual or alleged claimant or any other party, or obligate the Town to repair, replace or make reimbursement any alleged such damage or to adjust, settle or pay any Contract Damage Claims or other claims that are the obligation of the Contractor under this Contract.