42-Insurance Requirements.pdf

INSURANCE REQUIREMENTS

The Design-Builder shall not commence Work under the Contract until all insurance required below has been obtained and approved by the Owner. The Design-Builder shall not allow any Architect/Engineer, Consultant or Contractor to commence Work pursuant to a contract with Design-Builder until all insurance required of the Architect/Engineer, Consultant or Contractor has been obtained and approved. If a Subcontractor does not obtain insurance in its own name and its principal Design-Builder wishes to provide insurance protection for such Subcontractor and such Subcontractor’s employees, a rider shall be attached to the principal Design-Builder’s policy, which rider shall identify the persons thereby covered or else the principal Design-Builder shall obtain appropriate policies in the name of the Architect/Engineer, Consultant or Contractor.

The Design-Builder shall provide the Owner with Certificates of Insurance for all new and renewal insurance policies. Certificates shall name the Town of Palm Beach as an additional insured except for the Workers’ Compensation and Professional Liability insurance and show the Town of Palm Beach as the Certificate Holder. No insurance policy required herein may be canceled, non-renewed, or adversely changed without thirty days written notice to the Owner. Insurance shall be maintained at all times by the Design-Builder until final acceptance of the Work by the Owner except for completed operations coverage which shall be maintained for a period of one year beyond final acceptance of the Project. Completed operations coverage shall not serve to limit the liability of the Design-Builder.

All insurance required shall be on a primary and noncontributory basis and shall be provided by responsible insurers licensed in the State of Florida and rated at least A- in the then current edition of AM Best’s Rating Services, or similar rating agency acceptable to the Town.

If the insurance carried by the Design-Builder has broader coverage than required in this Agreement, then that broader coverage, including but not limited to additional insured requirements, shall be the requirement in this Agreement. If the Design-Builder’s insurance limits are greater than the minimum limits set forth herein, then the Design-Builder’s insurance limits shall be the required limits in this Agreement.

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. Failure to provide Certificates or failure to renew Insurance shall not relieve the Design-Builder of the responsibility to provide insurance as required. At the Owner’s request, the Design-Builder shall allow the Owner and/or the Owner’s designated representative to come to its local office, during regular business hours, to review complete copies of Design-Builder’s and all its Architect/Engineer, Consultant or Contractor ’s insurance policies. The Owner shall have the right to take notes during its review of the policies. Receipt of Certificates of Insurance which indicate less coverage than required does not constitute a waiver of the Design-Builder’s obligation to fulfill the insurance requirements herein.

The Design-Builder may, at its option, provide the limits of liability as set out herein by a combination of the policies described herein, including an Umbrella or Excess Liability Insurance Policy. Any Excess or Umbrella policy must provide coverage on at least a following form basis and must include completed operations and excavation, collapse and underground coverage, along with professional liability.

Approval of the insurance by the Owner shall not in any way relieve or decrease the liability of the Design-Builder. It is expressly understood that the Owner does not in any way represent that the specified limits of liability or coverage or policy forms are sufficient or adequate to protect the interest or liabilities of the Design-Builder.

The Design-Builder’s deductibles or self-insured retention may be disapproved by the Owner. All responsibility for payment of any sums resulting from any deductible provisions, corridor, or self-insured retention conditions of the policy or policies shall remain with the Design-Builder.

Design-Builder hereby waives all subrogation rights of its insurance carriers in favor of the Indemnified Parties. This provision is intended to waive fully, and for the benefit of the Indemnified Parties, any rights or claims which might give rise to a right of subrogation in favor of any insurance carrier.

The Town reserves the right to change or alter the above insurance requirements as it deems necessary.

A. Workers' Compensation

Coverage:

The Design-Builder shall obtain and maintain during the life of the Contract, Workers' Compensation Insurance for all of Design-Builder’s employees employed at the site of the Project.

Coverage should include Employers Liability, Voluntary Compensation and U.S. Longshore and Harbor Workers' Act coverage where applicable.

If any Work is subcontracted, the Design-Builder shall require each Architect/Engineer, Consultant or Contractor to provide Workers' Compensation Insurance for all the Architect/Engineer, Consultant or Contractor’s employees unless such employees are covered by the Workers' Compensation Insurance afforded by the Design-Builder.

The Design-Builder and Architect/Engineer, Consultant or Contractor shall purchase any other insurance or coverage required by law for the benefit of their employees. The Design-Builder and Architect/Engineer, Consultant or Contractor shall obtain and maintain such insurance and coverage in amounts not less than the following:

Limits:

Workers' Compensation - as required by Florida Law Employer’s Liability - $500,000 each Accident Employer's Liability - Disease - $500,000 each Employee/Policy Limit

B. Commercial General Liability

The Design-Builder shall obtain and maintain during the life of the Contract, such Commercial General Liability Insurance as shall provide coverage for the Design-Builder, Architect/Engineer, Consultant or Contractor, and the Owner from claims for bodily injury and personal injury, including accidental death, as well as from claims for property damage which may arise from operations under the Contract, whether such operations be by the Design-Builder or by any Architect/Engineer, Consultant or Contractor, or any of their agents, representatives, guests, employees, invitees or anyone contracting with Design-Builder or by anyone directly or indirectly employed by any of them.

Explosion, collapse and underground hazards shall be covered by the Design-Builder’s and Subcontractor’s Commercial General Liability Insurance. If such policy does not cover asbestos abatement liability, then a separate asbestos abatement policy with a limit of no less than $10,000,000 is required, on applicable projects.

A separate general aggregate limit of liability shall apply to the Project in the Contract. If the Design-Builder works on more than one project, a general aggregate shall apply to each of such projects. The project(s) shall be specifically described in the endorsement.

Occurrence type Commercial General Liability in amounts not less than:

Each Occurrence Limit - $10,000,000 General Aggregate Limit applicable per Project - $10,000,000 Products and Completed Operations Aggregate Limit - $10,000,000 Personal and Advertising Injury Limit - $10,000,000 Medical Expense Limit - Optional

C. Automobile Liability Insurance

The Design-Builder shall obtain and maintain Business Automobile Insurance providing liability coverage for “any auto”, which shall include, but not be limited to, all leased, owned, non-owned, and hired vehicles.

Combined Single Limit - $1,000,000 each Accident

D. Builder’s Risk Insurance

Design-Builder shall obtain and maintain Builder’s Risk Insurance insuring the Design-Builder’s work at the site to its full insurable replacement value. This insurance shall insure the interests of the Owner, the Design-Builder, and any Architect/Engineer, Consultants or Contractors in the Work and shall insure against special form causes of loss (all risk perils), including collapse during construction for replacement cost (including fees and charges of architects/engineers, attorneys and other professionals). The Design-Builder shall obtain and maintain similar property insurance on equipment, materials, supplies and other property and portions of the Work stored on or off site or in transit. Builder’s Risk Insurance shall be endorsed to permit occupancy until such time as the facilities are completed and accepted by the Owner and written notice of that fact has been issued by the Owner. Builder’s Risk Insurance shall also provide coverage to installed equipment and building systems that must undergo testing or commissioning to prove its ability or function.

E. Pollution/Environmental Liability Insurance

Design-Builder shall obtain and maintain Pollution/Environmental Liability Insurance, covering sudden and gradual pollution conditions including the discharge, release, or escape of fumes, vapors, smoke, acids, alkalis, asbestos, toxic chemicals, liquids or gases, waste materials, or other contaminants, irritants, or pollutants into or upon any structure, land, body of water, or atmosphere. Coverage shall include bodily injury, property damage, loss of use of tangible property whether or not it has not been physically injured or destroyed, cleanup and remediation costs, penalties or fines, and defense costs including costs incurred in the investigation or adjustment of the claim. Coverage may be provided by a stand-alone policy or by endorsement(s) to one of Design-Builder’s other policies. Coverage shall be provided both for the use of pollutants on site and during transit. If the policy is on a claims-made basis, it must include the retroactive date of coverage and shall be maintained for at least two (2) years past the date that the Work is completed.

Each Occurrence - $5,000,000

F. Professional Liability Insurance

Design-Builder: When Design-Builder and Architect/Engineer are a Single Legal Entity:

The Design-Builder shall obtain and maintain Professional Liability Insurance providing coverage including bodily injury and property damage from design, management such as construction project supervision, payment authorization and including Errors and Omissions coverage for the Work required to be performed by the Design-Builder pursuant to the Contract with a limit of $5,000,000 per occurrence. If the policy is on a claims-made basis with a limit of $5,000,000 then an extended reporting period of at least two (2) years past the date that the Work is completed.

Design-Builder: When Design-Builder and Architect/Engineer are Separate Legal Entities:

The Design-Builder shall, and shall ensure that any Architect/Engineer, Consultants or Contractors, obtain and maintain Professional Liability Insurance for their respective project responsibilities providing coverage including bodily injury and property damage from design, management such as construction project supervision, payment authorization and including Errors and Omissions coverage for the Work required to be performed by the Design-Builder and any Architect/Engineer, Consultants or Contractors pursuant to the Contract with a limit of $5,000,000 per occurrence. If the policy is on a claims-made basis with a limit of $5,000,000 then an extended reporting period of at least two (2) years past the date that the Work is completed.

G. Riggers Liability Insurance

The Design-Builder shall obtain and maintain Riggers Liability Insurance in the amount of at least $5,000,000 per occurrence to insure against physical loss of damage of the materials or equipment being lifted. Coverage shall provide for replacement of any property material or equipment damaged through Construction Manager’s work involving lifting, picking, rigging, or setting.

Each Occurrence - $5,000,000