Addendum No. 2 - Insurance Requirements - TM-2026-12 -Municipal Study - 10.15.2026.pdf

TM-2026-12

MUNICIPAL STUDY

ADDENDUM NO. 2 – Insurance Requirements 10/15/2026

This Addendum No. 2 is hereby made a part of the solicitation Documents on which the Contract will be based, and is issued to modify, explain and/or correct the original solicitation Documents. Receipt of this Addendum must be acknowledged on the RFP Submission Form. All proposers shall take careful note of this addendum so costs and trades that are affected are fully advised as to the performance requirements of the work that will be required of them. All proposals shall incorporate the following:

TOWN OF PURCELLVILLE, VIRGINIA

CONTRACTOR'S INSURANCE REQUIREMENTS

The Contractor will not commence work under this Contract nor receive any payments due until all insurance requirements herein have been met. A certificate of insurance displaying the required insurance coverages and the required policy endorsements in favor of the Town shall be provided by the Contractor to the Town.

A. At all times during the term of this Contract, the Contractor will maintain a general liability policy on an occurrence basis only with the following minimum coverages: $1,000,000 combined single limits each occurrence, $2,000,000 general aggregate, $2,000,000 products/completed operations coverage, $1,000,000 personal and advertising injury coverage, and an excess/umbrella liability policy with a minimum limit of $2,000.000 each occurrence and $2,000,000 annual policy aggregate. Coverage is to be on an occurrence basis with an insurer currently licensed to conduct business in the Commonwealth of Virginia. The insurer must have an A. M. Best rating of A- or better. The Contractor’s general liability and excess/umbrella liability policies must be endorsed to list the Town as an additional insured.

The insurance provided in the additional insured endorsement shall be endorsed so as to be primary without contribution from such other insurance provided or available to the additional insured (Town). Any additional insured endorsement will be rejected if it includes an exclusion of completed operations coverage, unless a separate endorsement for that coverage is attached. The endorsements required herein must be issued by the Contractor’s insurance company. A notation on the Certificate of Insurance of the Town’s additional insured status is not sufficient. Prior to the Contractor commencing work under the Contract, the Contractor shall provide the Town with a certificate of insurance and all endorsements evidencing compliance with all requirements under this paragraph.

B. At all times during the term of this Contract, the Contractor will maintain workers’ compensation coverage in compliance with the laws of the Commonwealth of Virginia.

Coverage is compulsory for employers of three or more employees, to include the employer.

The coverage must have statutory limits and be with an insurer currently licensed to conduct business in the Commonwealth of Virginia. The insurer must have an A. M. Best rating of A- or better. As an alternative, it is acceptable for the Contractor to be insured by a group self-insurance association that is licensed by the Virginia Bureau of Insurance. The Contractor will also carry employers’ liability insurance with a limit of at least $1,000,000 bodily injury by accident, $1,000,000 bodily injury by disease policy limit, $1,000,000 bodily injury by disease each employee. Prior to the Contractor commencing work under the Contract, the Contractor shall provide the Town with a certificate of insurance evidencing compliance with all requirements under this paragraph.

C. At all times during the term of this Contract, the Contractor will maintain automobile liability insurance with not less than $1,000,000 minimum limits. The coverage is to be written only with a symbol “1” or “any auto.” The insurer must be currently and remain licensed during the Contract to conduct business in the Commonwealth of Virginia. The insurer must have an A. M. Best rating of A- or better. The Town of Purcellville must be endorsed as an additional insured on the Contractor’s automobile liability policy. The endorsement must be issued by the Contractor’s insurance company. A notation of the endorsement on the Certificate of Insurance is insufficient. The insurance provided in the additional insured endorsement shall be endorsed to be primary without contribution from such other insurance provided or available to the additional insured. Prior to the commencement or any work under the Contract, the Contractor shall provide the Town with a Certificate of Insurance and all endorsements evidencing compliance with all insurance requirements under this paragraph.

D. Waiver of subrogation required: the Contractor’s insurer shall waive rights of subrogation against the Town, the Town’s insurance and providers, and its officers, officials, employees, agents, volunteers, other contractors and subcontractors under the Contractor’s general liability, automobile liability, excess/umbrella liability and workers’ compensation and employer’s liability policies. The waiver of subrogation in favor of the Town must be specified by endorsement provided to the Town and also properly indicated on the Certificate of Insurance. A notation of the endorsement on the Certificate of Insurance is insufficient.

E. Required policy endorsements may be provided by a scheduled endorsement directly naming the Town of Purcellville or an automatic or blanket endorsement within the specific insurance policy that states that under a written contract or agreement with the Town of Purcellville, the Town will be named as an additional insured on the required policy. The policy, endorsement forms, and language adding the Town as an additional insured on a policy or for other required policy endorsements such as that the policy shall be primary and noncontributory and the waiver of subrogation must be reviewed and approved by the Town of Purcellville prior to the commencement of any work or services.

F. Failure to maintain all required insurance coverages current, in force, and with current and valid required policy endorsements, and Certificates of Insurance, constitutes grounds for immediate termination of the Contract by the Town or cessation of all activities by the Contractor with payment for services suspended until all insurance requirements are met, at the sole discretion of the Town.

G. The Contractor agrees that the Contractor shall require the same insurance coverage from its Sub-Contractors as the Town requires of the Contractor under this Contract. Compliance by the Contractor and any of its Sub-Contractors with the insurance requirements under this

Contract shall not relieve the Contractor or any Sub-Contractors of their liabilities and obligations under this Contract.

H. Nothing contained herein shall be construed to create a contractual relationship between the Town and any Sub-Contractor of the Contractor. The Contractor shall be fully responsible at all times to the Town for the acts and omissions of the Contractor’s employees, the Contractor’s Sub-Contractors, and the employees of any Sub-Contractor.

I. If an “ACORD” Insurance Certificate form is used by the Contractor’s insurance agent, the words, “endeavor to” and “.... but failure to mail such notice shall impose no obligation or liability of any kind upon the company” in the “Cancellation” paragraph of the form is not acceptable and shall be deleted.

J. Notice of Cancellation. The Town will not accept any proof of insurance that fails to provide for thirty (30) days’ notice of policy cancellation [ten (10) days for non-payment]. This policy assurance may be provided by one of the following three methods:

1. A note on company letterhead that states the Town will receive the required notice of cancellation. This may be on the letterhead of either the agent, the broker, or the insurance company, and not include a blanket disclaimer of liability upon failure to give such notice.

2. A separate endorsement specifying the notice of cancellation as required, or

3. A copy of a policy provision regarding such notice of cancellation acceptable to the Town.

4. In summary, the Town will accept no proof of insurance that does not include in one of the forms indicated above an assurance that the Town will receive thirty (30) days’ notice of cancellation [ten (10) days for non-payment]. Also, any qualification of this assurance with language that purports to avoid liability for failure to provide such notice will not be accepted.

5. It is the responsibility of the Contractor to immediately notify the Town should any required insurance policy or endorsement be cancelled. Failure to immediately notify the Town of any such cancellation shall constitute a material breach of the contract.

K. The Contractor understands that the Town as a political subdivision of the Commonwealth of Virgina cannot indemnify or hold harmless any other party.

L. Effect Of Insurance: Compliance with insurance requirements shall not relieve the Contractor of any responsibility to indemnify the Town for any liability to the Town, as specified in any other provision of this Contract, and the Town shall be entitled to pursue any remedy in law or equity if the Contractor fails to comply with the contractual provisions of this Contract. Indemnity obligations specified elsewhere in this Contract shall not be negated or reduced by virtue of any insurance carrier's denial of insurance coverage for the occurrence or event which is the subject matter of the claim, or by any insurance carrier’s refusal to defend any named insured.

M. Neither the Town Manager, Town staff or the Town’s Project Manager for this Contract shall have any obligation to review any Certificates of Insurance or endorsements provided by the Contractor or any Sub-Contractor or to check or verify the Contractor’s or any Sub- Contractor’s compliance with any and all requirements regarding the insurance imposed by the Contract. The Contractor and any Sub-Contractor are fully liable and solely responsible for the types of insurance coverage, policy coverage limits, and policy endorsements required herein and the Contractor agrees and acknowledges that they are not excused and fully liable should any policy, endorsement or Certificate of Insurance provided by the Contractor or any Sub-Contractor not comply with the Contract’s insurance requirements.

N. Right to Revise or Reject: The Town reserves the right, but not the obligation, to revise any insurance requirement(s) such as but, not limited to, policy coverage amounts and endorsements, or reject any insurance policies which fail to meet the criteria stated herein.

Additionally, the Town reserves the right, but not the obligation, to review and reject any insurer providing coverage due to its poor financial condition or failure to operate legally in the Commonwealth of Virginia.

O. In the event the Contractor cannot meet any or all of the specifications required by these insurance requirements, alternate insurance coverage, satisfactory to the Office of the Town Manager, or their designee, may be considered if proposed by Contractor at the time of Proposal submission and consistent with the laws of the Commonwealth of Virginia.

P. Sovereign Immunity: Nothing contained within the Contract shall effect, or shall be deemed to affect, a waiver of the Town’s sovereign immunity or limit any sovereign or governmental immunity to which the Town may be entitled under law.