Attachment AA_Additional MPA _Insurance_Requirement.doc

Contract No.

INSURANCE REQUIREMENTS

The requiring of any and all insurance as set forth in these specifications, or elsewhere, shall be in addition to and not in any way in substitution for all the other protection provided under the Contract Documents.

No acceptance and/or approval of any insurance by the Maryland Port Administration, and/or the Engineer, shall be construed as relieving or excusing the Contractor, or the Surety of his Bonds, from any liability or obligation imposed upon either or both of them by the provisions of the Contract Documents.

The Contractor shall at all times during the term of this Contract, and until it has received Notice of Final Acceptance by the Maryland Port Administration, or the Engineer, maintain in full force and effect the polices of insurance required by this Section. The Contractor shall provide the Maryland Port Administration with evidence that the required insurance has been obtained. Insurance companies must be rated A- VIII or better by AM Best and should be lawfully authorized to do business in the State of Maryland or in the jurisdiction where the work is being performed. The Contractor shall name the Maryland Port Administration, MDOT and the State of Maryland as additional insureds on each of the policies (except Workers’ Compensation, Builders Risk Insurance and Professional Liability, see section B7) listed in Paragraph B. The commercial general liability additional insured endorsement should include “on-going operations” and “completed operations” coverage for the additional insured and a copy should be attached to the certificate of insurance. The Contractor shall provide certificates of insurance or other evidence that it has complied with this provision before commencement of work under this contract. Certificates shall indicate effective dates and dates of expiration of policies. However, the Contractor, if requested by the Maryland Port Administration, shall provide certified true copies of any and all of the policies of insurance to the Maryland Port Administration.

The Contractor shall not commence work under this contract until all the insurance required under this section has been obtained and approved by the Maryland Port Administration, nor shall the Contractor allow any Subcontractor to commence work on his subcontract until the insurance required of the Subcontractor has been so obtained and approved. Contractors of every tier should waive (and require their insurers to waive by endorsement) subrogation rights against the State for losses and damages incurred under the insurance policies required by the agreement. Contractors’ general liability and automobile liability insurance should be endorsed to include MPA, MDOT, and the State of Maryland as additional insureds and provide that such additional insured coverage will be primary and no contributions shall be permitted from any insurance or self-insurance maintained by the MPA, MDOT, or the State of Maryland.

All insurance policies required by this Section, or elsewhere in the Contract Documents, shall be so endorsed as to provide that the insurance carrier will be responsible for giving immediate and positive notice to the Maryland Port Administration in the event of cancellation or modification of the insurance policy by either the insurance carrier or the Contractor, at least sixty (60) days prior to any such cancellation or modification. A copy of the endorsement for each insurance policy shall be submitted to the Maryland Port Administration before any work under this Contract commences.

The Contractor shall purchase and maintain during the life of this Contract:

A.

Workers' Compensation

1.

Workers' Compensation insurance as required by the laws for the State of Maryland, which shall include Employer's Liability coverage with a minimum limit for each accident, disease policy limit, and disease – each employee.

B.

Liability Insurance

Occurrence forms of commercial general liability insurance covering the full scope of this agreement with limits not less than $1,000,000 each occurrence limit for bodily injury/property damage, $2,000,000 general aggregate limit per project, $300,000 for Damage to Rented Premises, and $10,000 medical payments to others. The commercial general liability coverage should include blanket contractual liability covering indemnity obligations. Such insurance shall include but shall not be limited to, the following:

1.

Commercial general liability insurance including and covering: a) premises and operations liability, b) products and completed operations liability, c) independent Contractors, d) blanket contractual liability, e) employees as additional insureds, f) notice of occurrence, g) knowledge of occurrence by specified official, h) unintentional errors and omissions, i) bodily injury or property damage for contamination by pollutants arising from the completed work, k) extended definition of bodily injury, l) personal and advertising injury coverage (hazards A and B) with no exclusions for liability assumed contractually or injury sustained by employees of Contractor, m) coverage for damage to property of the Maryland Port Administration, as well as other third parties resulting from negligence in the completion of the Contractor's services, n) Ship Repairer's Legal Liability.

2.

Automobile liability insurance. Coverage use of any company owned motor vehicle to be used in conjunction with this contract, including owned, hired automobiles and non-owned automobiles with limits not less than $1,000,000 combined single limit.

3.

Umbrella Liability Insurance

Contractor shall also purchase and maintain an occurrence "umbrella" form of excess liability insurance containing coverage in excess of the underlying policies specified above. The required primary insurance shall be listed as underlying coverage in the first layer umbrella policy. The umbrella policies shall contain a minimum each occurrence limit and aggregate limit of: $5,000,000 4.

Contractors Equipment Insurance/Equipment Floater Policy/Inland Marine Coverage. Broad ranging policy designed to cover damage or missing equipment (to include cranes) and tools. Policy shall cover any equipment that is owned, rented, leased or borrowed from others and be written to include the removal of debris and cleanup after an accident/incident. This coverage can be procured as contractors’ equipment insurance, equipment floater policy, or as inland marine coverage.

It is the sole responsibility of the Contractor to see that any and all of its Subcontractors or their Subcontractors carry insurance required herein to the extent Contractor wishes to impose on its Subcontractor such liability insurance. Automobile liability insurance required herein shall be provided by each Subcontractor: The Contractor shall be held responsible for compliance and enforcement of the Maryland Port Administration's insurance requirements and its own requirements and for any modifications or waivers of these insurance requirements as they apply to Subcontractors.

The Maryland Port Administration shall have the right to require that the limits of liability set forth in the above paragraphs hereof be raised if in its judgment economic or insurance market conditions warrant. If additional costs are incurred because of raised limits, the pre-approved additional cost shall be added to the Contract Sum.

Without limitation of any other provisions of this Contract, if (a) the Contractor's agreement herein to insure or to name as an additional insured the Maryland Port Administration, MDOT and the State of Maryland with respect to contractual liability assumed by the Contractor under the terms of the Contract Documents or otherwise, or (b) any Contract of insurance between the Contractor or any Subcontractor and its insurance company, shall to any extent be or be determined to be void or unenforceable, it is the intention of the parties that such circumstances shall not otherwise affect the validity or enforceability of Contractor's agreements and obligations under the Contract Documents nor the validity or enforceability of such contract of insurance, each of which shall be enforced to the fullest extent permitted by law.

The furnishing of evidence of insurance by certificate or policy copy that is not in conformance with the requirements shall not constitute a waiver of or amendment to, the aforementioned requirements. Any modification or waiver of the requirements must be provided by the Maryland Port Administration in writing to the Contractor and agreed to by signature of any authorized Officer of the Contractor.