4-PD 1.2 CORR-Insurance-07.2011.pdf

Page 1 of 4 DATED: JULY 2011

City of Round Rock

Insurance Requirements

1. INSURANCE: The Vendor shall procure and maintain at its sole cost and expense for the duration of the agreement or purchase order resulting from a response to the Solicitation/Specification, insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work as a result of the solicitation by the successful respondent, its agents, representatives, volunteers, employees or subcontractors.

1.1. Certificates of Insurance and endorsements shall be furnished to the City and approved by the

City before work commences.

1.2. The following standard insurance policies shall be required:

1.2.1. General Liability Policy

1.2.2. Automobile Liability Policy

1.2.3. Worker’s Compensation Policy

1.3. The following general requirements are applicable to all policies:

1.3.1. Only insurance companies licensed and admitted to do business in the State of Texas shall be accepted.

1.3.2. Deductibles shall be listed on the Certificate of Insurance and are acceptable only on a per occurrence basis for property damage only.

1.3.3. Claims made policies shall not be accepted, except for Professional Liability Insurance.

1.3.4. Upon request, certified copies of all insurance policies shall be furnished to the City.

1.3.5. Policies shall include, but not be limited to, the following minimum limits:

1.3.5.1. Minimum Bodily Injury Limits of $300,000.00 per

occurrence.

1.3.5.2. Property Damage Insurance with minimum limits of $50,000.00 for each occurrence.

1.3.5.3. Automobile Liability Insurance for all owned, non-owned, and hired vehicles with minimum limits for Bodily Injury of $100,000.00 each person, and $300,000.00 for each occurrence, and Property Damage Minimum limits of $50,000.00 for each occurrence.

1.3.5.4. Statutory Worker’s Compensation Insurance and minimum $100,000.00 Employers Liability Insurance.

1.3.6. Coverage shall be maintained for two years minimum after the termination of the Agreement.

1.4. The City shall be entitled, upon request, and without expense to receive copies of insurance policies and all endorsements thereto and may make reasonable request for deletion, revision, or modification of particular policy terms, conditions, limitations, or exclusions (except where policy provisions are established by law or regulation binding either of the parties hereto or the underwriter of any of such policies). Upon such request

Page 2 of 4 DATED: JULY 2011 by the City, the Vendor shall exercise reasonable efforts to accomplish such changes in policy coverage and shall pay the cost thereof. All insurance and bonds shall meet the requirements of the solicitation specification and the insurance endorsements stated below.

1.5. Vendor agrees that with respect to the required insurance, all insurance contracts and certificate(s) of insurance will contain and state, in writing, on the certificate or its attachment, the following provisions:

1.5.1. Provide for an additional insurance endorsement clause declaring the Vendor’s insurance as primary.

1.5.2. Name the City and its officers, employees, and elected officials as additional insured’s, (as the interest of each insured may appear) as to all applicable coverage.

1.5.3. Provide thirty days’ notice to the City of cancellation, non-renewal, or material changes.

1.5.4. Remove all language on the certificate of insurance indicating:

1.5.4.1. That the insurance company or agent/broker shall endeavor to notify the City; and,

1.5.4.2. Failure to do so shall impose no obligation of liability of any kind upon the company, its agents, or representatives.

1.5.5. Provide for notice to the City at the addresses listed below by registered mail:

1.5.6. Vendor agrees to waive subrogation against the City, its officers, employees, and elected officials for injuries, including death, property damage, or any other loss to the extent same may be covered by the proceeds of insurance.

1.5.7. Provide that all provisions of the agreement concerning liability, duty, and standard of care together with the indemnification provision, shall be underwritten by contractual liability coverage sufficient to include such obligations within applicable policies.

1.5.8. All copies of the Certificate of Insurance shall reference the project name, solicitation number or purchase order number for which the insurance is being supplied.

1.5.9. Vendor shall notify the City in the event of any change in coverage and shall give such notices not less than thirty days prior notice to the change, which notice shall be accomplished by a replacement Certificate of Insurance.

1.5.10. All notices shall be mailed to the City at the following addresses:

Assistant City Manager City Attorney City of Round Rock City of Round Rock 221 East Main 309 East Main Round Rock, TX 78664-5299 Round Rock, TX 78664

2. WORKERS COMPENSATION INSURANCE

2.1. Texas Labor Code, Section 406.098 requires workers’ compensation insurance coverage for all persons providing services on building or construction projects for a governmental entity.

2.1.1. Certificate of coverage (“certificate”) - A copy of a certificate of insurance, a certificate of authority to self-insure issued by the Texas Workers’ Compensation Commission, or a coverage agreement (TWCC-81, TWCC-82, TWCC-83, or

Page 3 of 4 DATED: JULY 2011

TWCC-84), showing statutory workers’ compensation insurance coverage for the person’s or entity’s employees providing services on a project, for the duration of the project.

2.1.2. Duration of the project - includes the time from the beginning of the work on the project until the CONTRACTOR’S/person’s work on the project has been completed and accepted by the OWNER.

2.2. Persons providing services on the project (“subcontractor”) in Section 406.096 – includes all persons or entities performing all or part of the services the CONTRACTOR has undertaken to perform on the project, regardless of whether that person contracted directly with the CONTRACTOR and regardless of whether that person has employees. This includes, without limitation, independent contractors, subcontractors, leasing companies, motor carriers, owner-operators, employees of any such entity, or employees of any entity, which furnishes persons to provide services on the project. “Services” include, without limitation, providing, hauling, or delivering equipment or materials, or providing labor, transportation, or other service related to a project. “Services” does not include activities unrelated to the project, such as food/beverage vendors, office supply deliveries, and delivery of portable toilets.

2.3. The CONTRACTOR shall provide coverage, based on proper reporting of classification codes and payroll amounts and filing of any coverage agreements, that meets the statutory requirements of Texas Labor Code, Section 401.011(44) for all employees of the CONTRACTOR providing services on the project, for the duration of the project.

2.4. The CONTRACTOR must provide a certificate of coverage to the OWNER prior to being awarded the agreement.

2.5. If the coverage period shown on the CONTRACTOR’S current certificate of coverage ends during the duration of the project, the CONTRACTOR shall, prior to the end of the coverage period, file a new certificate of coverage with the OWNER showing that coverage has been extended.

2.6. The CONTRACTOR shall obtain from each person providing services on a project, and provide to the OWNER:

2.6.1. a certificate of coverage, prior to that person beginning work on the project, so the OWNER will have on file certificates of coverage showing coverage for all persons providing services on the project; and

2.6.2. no later than seven (7) calendar days after receipt by the CONTRACTOR, a new certificate of coverage showing extension of coverage, if the coverage period shown on the current certificate of coverage ends during the duration of the project.

2.7. The CONTRACTOR shall retain all required certificates of coverage for the duration of the project and for one (1) year thereafter.

2.8. The CONTRACTOR shall notify the OWNER in writing by certified mail or personal delivery, within ten (10) calendar days after the CONTRACTOR knew or should have known, or any change that materially affects the provision of coverage of any person providing services on the project.

2.9. The CONTRACTOR shall post on each project site a notice, in the text, form and manner prescribed by the Texas Workers’ Compensation Commission, informing all persons providing services on the project that they are required to be covered, and stating how a person may verify coverage and report lack of coverage.

2.10. The CONTRACTOR shall contractually require each person with whom it contracts to provide services on a project, to:

2.10.1. provide coverage, based on proper reporting of classification codes and payroll amounts and filing of any coverage agreements, that meets the statutory requirements

Page 4 of 4 DATED: JULY 2011 of Texas Labor Code, Section 401.011(44) for all its employees providing services on the project, for the duration of the project;

2.10.2. provide to the CONTRACTOR, prior to that person beginning work on the project, a certificate of coverage showing that coverage is being provided for all employees of the person providing services on a project, for the duration of the project;

2.10.3. provide the CONTRACTOR, prior to the end of the coverage period, a new certificate of coverage showing extension of coverage, if the coverage period shown on the current certificate of coverage ends during the duration of the project;

2.10.3.1. obtain from each other person with whom it contracts, and provide to the

CONTRACTOR:

2.10.3.1.1. a certificate of coverage, prior to the other person beginning work on the project; and

2.10.3.1.2. a new certificate of coverage showing extension of coverage, prior to the end of the coverage period, if the coverage period shown on the current certificate of coverage ends during the duration of the project

2.10.3.2. retain all required certificates of coverage on file for the duration of the project and for one (1) year thereafter;

2.10.3.3. notify the OWNER in writing by certified mail or personal delivery, within ten

(10) calendar days after the person knew or should have known, of any change that materially affects the provision of coverage of any person providing services on the project; and

2.10.3.4. contractually require each person with whom it contracts, to perform as required by paragraphs (2.1 thru 2.7), with the certificates of coverage to be provided to the person for whom they are providing services.

2.10.3.5. By signing the solicitation associated with the specification, or providing, or causing to be provided a certificate of coverage, the Contractor is representing to the Owner that all employees of the Contractor who will provide services on the project will be covered by workers’ compensation coverage for the duration of the project, that the coverage will be based on proper reporting of classification codes and payroll amounts, and that all coverage agreements will be filed with the appropriate insurance carrier or, in the case of a self-insured, with the Commission’s Division of Self-Insurance Regulation. Providing false or misleading information may subject the Contractor to administrative penalties, criminal penalties, civil penalties, or other civil actions.

2.10.3.6. The Contractor’s failure to comply with any of these provisions is a breach of contract by the Contractor that entitles the Owner to declare the agreement void if the Contractor does not remedy the breach within ten (10) calendar days after receipt of notice of breach from the owner