3-04. Insurance Requirements 000601, Appendix B.pdf

SECTION 000601

INSURANCE REQUIREMENTS

1. General Insurance Requirements

1.1. The Contractor/Consultant/Vendor (hereinafter “Vendor”) shall not commence any operations or services on behalf of the Board of Education of Howard County (the “Board”) until the Vendor has obtained at the Vendor’s own expense all of the insurance as required hereunder and such insurance has been approved by the Board.

Approval of insurance required of the Vendor will be granted only after submission to the Board of original certificates of insurance signed by authorized representatives of the insurers or, at the Board's request, certified copies of the required insurance policies.

1.2. Insurance as required hereunder shall be in force throughout the term of the Contract. Original certificates signed by authorized representatives of the insurers or, at the Board's request, certified copies of insurance policies, evidencing that the required insurance is in effect, shall be maintained with the Board throughout the term of the Contract.

1.3. The Vendor shall require all Subcontractors to maintain during the term of the Contract insurance to the same extent required of the Vendor herein unless any such requirement is expressly waived or amended by the Board in writing. The Vendor shall furnish Subcontractors' certificates of insurance to the Board immediately upon request.

1.4. All insurance policies required hereunder shall be endorsed to provide that the policy is not subject to cancellation, non-renewal or material reduction in coverage until thirty (30) days prior written notice has been given to the Board.

1.5. No acceptance and/or approval of any insurance by the Board shall be construed as relieving or excusing the Vendor from any liability or obligation imposed upon the Vendor by the provisions of this Contract.

1.6. If the Vendor does not meet the insurance requirements of this Contract, the Vendor shall forward a written request to the Board for a waiver in writing of the insurance requirement(s) not met or approval in writing of alternate insurance coverage, self-insurance, or group self-insurance arrangements. If the Board denies the request, the Vendor must comply with the insurance requirements as specified in this Contract.

1.7. All required insurance coverage must be underwritten by insurers allowed to do business in the State of Maryland and acceptable to the Board. The insurers must also have a policyholders' rating of "A-" or better, and a financial size of "Class VII" or better in the latest evaluation by A. M. Best Company, unless the Board grants specific approval for an exception.

1.8. Any deductibles or retentions in excess of $10,000 shall be disclosed by the Vendor and are subject to the Board's written approval. Any deductible or retention amounts elected by the Vendor or imposed by the Vendor's insurer(s) shall be the sole responsibility of the Vendor.

1.9. If the Board is damaged by the failure or neglect of the Vendor to purchase and maintain insurance as described and required herein, without so notifying the Board, then the Vendor shall bear all reasonable costs properly attributable thereto.

1.10. Any and all return premiums and/or dividends for insurance or coverage directly charged to the Board by the Service Provider in connection with this Contract shall belong to and be payable to the Board.

2. General Insurance Requirements

2.1. The Vendor shall purchase and maintain the following insurance coverages at not less than the limits specified below or required by law, whichever is greater:

2.1.1 Commercial general liability insurance or its equivalent for bodily injury, personal injury and property damage including loss of use, with minimum limits of:

$1,000,000 each occurrence;

$1,000,000 personal and advertising injury;

$2,000,000 general aggregate; and $1,000,000 products/completed operations aggregate.

This insurance shall include coverage for all of the following:

i. Liability arising from premises and operations;

ii. Liability arising from the actions of independent contractors; and

iii. Contractual liability including protection for the Contractor from bodily injury and property

Appendix B damage claims arising out of liability assumed under this Contract.

2.1.2 Umbrella excess liability or excess liability insurance or its equivalent with minimum limits of:

$1,000,000 per occurrence;

$1,000,000 aggregate for other than products/completed operations & auto liability; and $1,000,000 products/completed operations aggregate; and including all of the following coverages on the applicable schedule of underlying insurance:

i. Commercial general liability;

ii. Business auto liability; and

iii. Employers liability.

2.2. The Board of Education of Howard County and its elected and appointed officials, officers, employees and authorized volunteers shall be named as additional insureds on the Contractor's commercial general liability insurance with respect to liability arising out of the services provided under this Contract by Vendor.

2.3. Insurance or self-insurance provided to the Board and its elected and appointed officials, officers, employees and authorized volunteers under any Vendor’s liability insurance or self-insurance required herein shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of insurance or self-insurance. (Any cross suits or cross liability exclusion shall be deleted from Vendor’s liability insurance policies required herein.)

2.4. Insurance or self-insurance provided to the Board and its elected and appointed officials, officers, employees and authorized volunteers as specified herein shall be primary, and any other insurance, self- insurance, coverage or indemnity available to the Board and Board's elected and appointed officials, officers, employees and authorized volunteers shall be excess of and non-contributory with insurance or self-insurance provided to the Board and its elected and appointed officials, officers, employees and authorized volunteers as specified herein

2.5. If any liability insurance purchased by the Vendor has been issued on a "claims made" basis, the Vendor must comply with the following additional conditions:

2.5.1 The Vendor shall agree to provide certificates of insurance evidencing such claims made coverages for a period of one year after final payment by the Board for Contractor’s services under this Contract.

Such certificates shall evidence a retroactive date no later than the earlier of the date of this Contract or the commencement of Contractor’s services under this Contract; or

2.5.2 The Vendor shall purchase an extended (minimum one-year) reporting period endorsement for each such "claims made" policy in force as of the date of final payment by the Board for Contractor’s services under this Contract and evidence the purchase of this extended reporting period endorsement by means of a certificate of insurance or a copy of the endorsement itself. Such certificate or copy of the endorsement shall evidence a retroactive date no later than the earlier of the date of this Contract or the commencement of Vendor’s services under this Contract.

Waiver of Subrogation To the fullest extent permitted by law, the Vendor and its invitees, employees, officials, volunteers, agents and representatives waive any right of recovery against the Board of Education of Howard County for any and all claims, liability, loss, damage, costs or expense (including attorneys’ fees) arising out of the services provided by Vendor under this Contract. Such waiver shall apply regardless of the cause of origin of the injury, loss or damage, including the negligence of the Board and its elected and appointed officials, officers, volunteers, Vendors, agents and employees. The Vendor shall advise its insurers of the foregoing.

Damage to Property of the Vendor and its Invitees To the fullest extent permitted by law, the Vendor shall be solely responsible for any loss or damage to property of the Vendor or its invitees, employees, officials, volunteers, agents and representatives while such property is on, at or adjacent to the premises of the Board.