Appendix C - Insurance Requirements.pdf

Builder’s Risk Insurance Requirements

NON-WAIVER

The parties hereto understand and agree that Adams County is relying on, and does not waive or intend to waive by any provision of this Contract, the monetary limitations or any other rights, immunities, and protections provided by the Colorado Governmental Immunity Act et seq., as from time to time amended, or otherwise available to Adams County, its subsidiary, associated and/or affiliated entities, successors, or assigns; or its elected officials, employees, agents, and volunteers.

Insurance Requirements:

Contractor and subcontractors shall procure and maintain until all of their obligations have been discharged, including any warranty periods under this Contract are satisfied, insurance against claims for injury to persons or damage to property which may arise from or in connection with the performance of the work hereunder by the Contractor, its agents, representatives, employees or subcontractors. The insurance requirements herein are minimum requirements for this Contract and in no way limit the indemnity covenants contained in this Contract. Adams County in no way warrants that the minimum limits contained herein are sufficient to protect the Contractor from liabilities that might arise out of the performance of the work under this Contract by the Contractor, its agents, representatives, employees, or subcontractors. The Contractor shall assess its own risks and if it deems appropriate and/or prudent, maintain higher limits and/or broader coverages. The Contractor is not relieved of any liability or other obligations assumed or pursuant to the Contract by reason of its failure to obtain or maintain insurance in sufficient amounts, duration, or types.

A. Coverage and Limits of Insurance

Contractor shall provide coverage with limits of liability not less than those stated below. An umbrella and/or excess liability policy may be used to meet the minimum liability requirements provided that the coverage is written on a “following form” basis.

1. Commercial General Liability – Occurrence Form – ISO CG 0001 or equivalent.

Coverage to include:

• Premises and Operations

• Explosions, Collapse and Underground Hazards

• Personal / Advertising Injury

• Products / Completed Operations

• Liability assumed under an Insured Contract (including defense costs assumed under contract)

• Independent Contractors

• Designated Construction Projects(s) General Aggregate Limit, ISO CG 2503 or equivalent

• Automatic Additional Insured Endorsement, Owners, Lessees or Contractors, ISO Form 2038 or equivalent

• Additional Insured—Completed Operations Owners, Lessees or Contractors Endorsement, ISO CG 2037 or equivalent o Completed Operations coverage must be kept in effect for up to the statute of repose after project completion

Coverage and Limits of Insurance (continued)

• The policy shall be endorsed to include the following additional insured language on the Additional Insured Endorsements specified above: Adams County its subsidiary, parent, associated and/or affiliated entities, successors, or assigns, its elected officials, trustees, employees, agents, and volunteers named as an additional insured with respect to liability and defense of suits arising out of the activities performed by, or on behalf of the Contractor, including completed operations”.

Minimum Limits:

General Aggregate $ 2,000,000 Products/Completed Operations Aggregate $ 2,000,000 Each Occurrence Limit $ 1,000,000 Personal/Advertising Injury $ 1,000,000 Fire Damage (Any One Fire) $ 100,000 Medical Payments (Any One Person) $ 10,000

2. Automobile Liability

Bodily injury and property damage for any owned, hired, and non-owned vehicles used in performance of this Contract.

Minimum Limits

Bodily Injury/Property Damage (Each Accident) $1,000,000

3. Workers Compensation and Employer’s Liability Bodily injury and property damage for any owned, hired, and non-owned vehicles used in performance of this Contract.

a. Policy shall contain a waiver of the contractor’s insurance carriers’ rights of subrogation against Adams County.

b. This requirement shall not apply when a contractor or subcontractor is exempt under Colorado Workers’ Compensation Act., AND when such contractor or subcontractor executes the appropriate sole proprietor waiver form.

Minimum Limits:

Coverage A (Workers’ Compensation) Statutory

Coverage B (Employers Liability) $ 500,000 (Each Accident)

$ 500,000 (Each Disease)

$ 500,000 (Each Disease – Policy Limit)

4. Professional Liability

The Contractor shall maintain Professional Liability covering wrongful acts, errors and/or omissions, including design errors, if applicable, for damage sustained by reason of or in the course of operations under this Contract resulting from professional services provided by the Contractor as part of the Contract.

The policy/coverages shall be amended to include the following:

a. Coverage shall apply for three (3) years after project is complete.

b. Policy is to be on a primary basis; if other professional coverage is carried.

Per Loss $ 2,000,000

Aggregate $ 4,000,000

5. Contractors Pollution Liability

Adams County requires this coverage whenever work at issue under this Contract involves potential pollution risk to the environment or losses caused by pollution conditions (including asbestos) that may arise from the operations of the Contractor described in the Contractor’s scope of services. Policy shall cover the Contractor’s completed operations.

Coverage shall apply to sudden and gradual pollution conditions resulting from the escape of release of smoke, vapors, fumes, acids, alkalis, toxic chemicals, liquids, or gases, natural gas, waste materials, or other irritants, contaminants, or pollutants (including asbestos). If the coverage is written on a claims-made basis, the Contractor warrants that any retroactive date applicable to coverage under the policy precedes the effective date of this Contract; and that continuous coverage will be maintained or an extended discovery period will be exercised for a period of three (3) years beginning from the time that work under this contract is completed.

a. The policy shall be endorsed to include the following as Additional Insureds: Adams County, its subsidiary, parent, associated and/or affiliated entities, successors, or assigns, its elected officials, trustees, employees, agents, and volunteers named as an additional insured with respect to liability and defense of suits arising out of the activities performed by, or on behalf of the Contractor, including completed operations”.

Minimum Limits:

Per Loss $ 1,000,000 Aggregate $ 1,000,000

6. Builders' Risk Insurance or Installation Floater – Completed Value Basis

Unless otherwise provided, the Contractor shall purchase and maintain, in a company or companies lawfully authorized to do business in the jurisdiction in which the Project is located, Builders' Risk Insurance in the amount of the initial Contract Sum, plus value of subsequent modifications, change orders, and cost of material supplied or installed by others, comprising total value of the entire Project at the site on a replacement cost basis without optional deductibles.

a. Policy must provide coverage from the time any covered property becomes the responsibility of the Contractor, and continue without interruption during construction, renovation, or installation, including any time during which the covered property is being transported to the construction installation site, or awaiting installation, whether on or off site.

b. Such Builders' Risk Insurance shall be maintained, unless otherwise provided in the Contract Documents or otherwise agreed in writing by all persons and entities who are beneficiaries of such insurance, until final payment has been made or until no person or entity other than the Adams County’s has insurable interest in the property to be covered, whichever is later.

c. The Builders' Risk insurance shall include interests of Adams County and if applicable, affiliated or associate entities, the General Contractor, subcontractors and sub-tier contractors in the Project.

d. The Builders' Risk Coverage shall be written on a Special Covered Cause of Loss form and shall include theft, vandalism, malicious mischief, collapse, false-work, temporary buildings, transit, debris removal including demolition, increased cost of construction, architect’s fees and expenses, flood (including water damage), earthquake, and if applicable, all below and above ground structures, piping, foundations including underground water and sewer mains, piling including the ground on which the structure rests and excavation, backfilling, filling, and grading.

e. The Builders’ Risk shall include a Beneficial Occupancy Clause. The policy shall specifically permit occupancy of the building during construction. Contractor shall take reasonable steps to obtain consent of the insurance company and delete any provisions with regard to restrictions within any Occupancy Clauses within the Builder’s Risk Policy. The Builder’s Risk Policy shall remain in force until acceptance of the project by the Adams County.

f. The Builder’s Risk Coverage shall include soft cost (delay in opening) coverages, including but not limited to: additional interest on loans, additional taxes, and all other additional fees and premiums associated with a delay in the project’s completion when the delay is a direct consequence to damage to the project by an insured peril.

g. Equipment Breakdown Coverage (a.k.a. Boiler & Machinery) shall be included as required by the Contract Documents or by law, which shall specifically covers insured equipment during installation and testing (including cold and hot testing).

h. The deductible shall not exceed $25,000 and shall be the responsibility of the Contractor except for losses that involve all Acts of God such as flood, earthquake, windstorm, tsunami, volcano, etc.

B. Additional Insured Requirements:

The policies shall include, or be endorsed to include, the following provisions: 1. On insurance policies where Adams County is named as an additional insured, Adams County shall be an additional insured to the full limits of liability purchased by the Contractor even if those limits of liability are in excess of those required by this Contract.

C. Notice Of Cancellation:

Each insurance policy required by the insurance provisions of this Contract shall provide the required coverage and shall not be suspended, voided or canceled except after thirty (30) days prior written notice has been given to Adams County except when cancellation is for non-payment of premium, then ten (10) days prior notice may be given. Such notice shall be sent directly to Adams County. If any insurance company refuses to provide the require notices, the Contractor or its insurance broker shall notify Adams County of any cancellation, suspension, non-renewal of any insurance within seven (7) days of receipt of insurers’ notification to that effect.

D. Acceptability Of Insurers: Insurance is to be placed with insurers duly licensed or authorized to do business in the state of Colorado and with an “A.M. Best” rating of not less than A-VII. Adams County in no way warrants that the above-required minimum insurer rating is sufficient to protect the Contractor from potential insurer insolvency.

E. Verification Of Coverage:

Contractor shall furnish Adams County with certificates of insurance (ACORD form or equivalent ) as required by this Contract. The certificates for each insurance policy are to be signed by a person authorized by that insurer to bind coverage on its behalf.

All certificates and any required endorsements are to be received and approved by the Adams County before work commences. Each insurance policy required by this Contract must be in effect at or prior to commencement of work under this Contract and remain in effect for the duration of the project. Failure to maintain the insurance policies as required by this Contract or to provide evidence of renewal is a material breach of contract.

All certificates required by this Contract shall be sent directly to Adams County. The project/contract number and project description shall be noted on the certificate of insurance. Adams County reserves the right to require complete, certified copies of all insurance policies required by this Contract at any time.

F. Subcontractors:

Contractors’ certificate(s) shall include all subcontractors as additional insureds under its policies or subcontractors shall maintain separate insurance as determined by the Contractor, however, subcontractor's limits of liability shall not be less than $1,000,000 per occurrence / $2,000,000 aggregate.

G. Approval:

Any modification or variation from the insurance requirements in this Contract shall be made by the Adams County, whose decision shall be final. Such action will not require a formal Contract amendment, but may be made by administrative action.