5249944_Exhibit_D_-_Insurance_Provisions.docx

Department of General Services Uniform and Mat Rental and Cleaning Services IFB Number: 5249944

Exhibit D – Insurance Provisions Insurance Requirements: Contractor shall comply with all requirements outlined in the (1) General Provisions section and (2) Contract Insurance Requirements outlined in this Exhibit. No payments will be made under this MSA until Contractor fully complies with all requirements.

General Provisions Applying to All Policies Coverage Term Coverage needs to be in force for the complete term of the MSA. If insurance expires during the term of the MSA, a new certificate must be received by the State at least ten (10) days prior to the expiration of this insurance. Any new insurance must comply with the original terms of the MSA.

Policy Cancellation or Termination & Notice of Non-Renewal Contractor is responsible to notify the State within five (5) business days of any cancellation, non-renewal or material change that affects required insurance coverage. New certificates of insurance are subject to the approval of the Department of General Services and the Contractor agrees no work or services will be performed prior to obtaining such approval. In the event Contractor fails to keep in effect at all times the specified insurance coverage, the State may, in addition to any other remedies it may have, terminate this MSA upon the occurrence of such event, subject to the provisions of this MSA.

Premiums, Assessments and Deductibles Contractor is responsible for any premiums, policy assessments, deductibles or self-insured retentions contained within their insurance program.

Primary Clause Any required insurance contained in this MSA shall be primary, and not excess or contributory, to any other insurance carried by the State.

Insurance Carrier Required Rating All insurance companies must carry an AM Best rating of at least “A–” with a financial category rating of no lower than VII. If the Contractor is self- insured for a portion or all of its insurance, review of financial information including a letter of credit may be required.

Endorsements Any required endorsements requested by the State must be physically attached to all requested certificates of insurance and not substituted by referring to such coverage on the certificate of insurance.

Inadequate Insurance Inadequate or lack of insurance does not negate the contractor’s obligations under the MSA.

Use of Subcontractors In the case of Contractor’s utilization of subcontractors to complete the contracted scope of work, Contractor shall include all subcontractors as insureds under Contractor’s insurance or supply evidence of subcontractor’s insurance to The State equal to policies, coverages, and limits required of Contractor.

Available Coverages/Limits All coverage and limits available to the contractor shall also be available and applicable to the State.

Contract Insurance Requirements Contractor shall display evidence of the following on a certificate of insurance evidencing the following coverages:

1. Commercial General Liability Contractor shall maintain general liability on an occurrence form with limits not less than one million dollars ($1,000,000) per occurrence for bodily injury and property damage liability combined with a two million dollars ($2,000,000) annual policy aggregate. The policy shall include coverage for liabilities arising out of premises, operations, independent contractors, products, completed operations, personal & advertising injury, and liability assumed under an insured contract. This insurance shall apply separately to each insured against whom claim is made or suit is brought subject to the Contractor’s limit of liability.

The policy must name The State of California, its officers, agents, and employees as additional insured, but only with respect to work performed under the MSA.

1. Automobile Liability Contractor shall maintain business automobile liability insurance for limits not less than one million dollars ($1,000,000) combined single limit. Such insurance shall cover liability arising out of a motor vehicle including owned, hired and non-owned motor vehicles. Should the scope of the MSA involve transportation of hazardous materials, evidence of an MCS-90 endorsement is required.

The policy must name The State of California, its officers, agents, and employees as additional insured, but only with respect to work performed under the MSA.

1. Workers Compensation and Employers Liability Contractor shall maintain statutory worker’s compensation and employer’s liability coverage for all its employees who will be engaged in the performance of the MSA. In addition, employer’s liability limits of one million dollars ($1,000,000) are required. By signing this MSA, Contractor acknowledges compliance with these regulations.

A Waiver of Subrogation or Right to Recover endorsement in favor of the State of California must be attached to certificate.