Portland Public Schools Phase 3 District Specific Insurance Program

(DSIP)

Participant Guidebook/Manual

Program Name: Portland Public Schools DSIP Phase 3

Project Locations: Various project locations in School District #1-J

Multnomah County, OR

Guidebook Prepared By:

Builders Protection Group LLC 1852 Lomita Blvd. Suite 210

Lomita, CA 90717 www.buildersprotect.com

SAMPLE

Attachment E

Portland Public Schools Phase 3 DSIP Participant Guidebook/Manual

Builders Protection Group LLC RESTRICTED – PARTICIPANT USE ONLY

Copyright by Builders Protection Group LLC 1852 Lomita Blvd. Suite 210 Lomita, CA 90717

All text copyright by Builders Protection Group LLC

All rights reserved under international and Pan-American Copyright Conventions. No part of this book may be reproduced or utilized in any form or by any means, electronic or mechanical, including photocopying, recording, or by any information storage and retrieval system, without permission in writing from the publisher.

This book is provided to authorized DSIP participants on the condition that it shall not, by the way of trade or otherwise, be lent, re-sold either whole or in part, hired out or otherwise circulated without prior written consent of the publisher.

Printed in the United States of America by Builders Protection Group LLC

WARNING:

Issuance of this book does not transfer by the copyright holder its exclusive right to prepare derivative works. Violators will be subject to civil and/or criminal penalties.

ISBN Number: 0-9754323-1-2

Publisher:

Builders Protection Group LLC 1852 Lomita Blvd. Suite 210 Lomita, CA 90717 310-220-2374 – fax www.buildersprotect.com http://www.buildersprotect.com/

Builders Protection Group LLC RESTRICTED – PARTICIPANT USE ONLY

Builders Protection Group LLC – DSIP Participant Guidebook/Manual Table of Contents

Section/Topic Page

Introduction 1

Overview of an DSIP Program 2

DSIP Program Specifications 4

The DSIP Enrollment Process 5

The Program’s Covered Entities 7

The Program’s Benefits and Exclusions Overview 8

Participant Roles and Responsibilities 9

Participant Verification of Insurance Cost 13

Safety Program 14

Emergency Action Plan 15

Incident/Claims Reporting Process 16

Program Contact Information 17

Appendix 18

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Introduction

You have been awarded a contract for work on a project included in the Portland Public Schools Phase 3 DSIP.

The project is included within an insurance vehicle known as an DSIP (District Specified Insurance Program), commonly referred to as a DSIP. The DSIP provides General Liability and Contractors Pollution Liability for all enrolled and eligible construction participants. This manual is designed to help educate you on the DSIP Administration process, what to expect throughout the process, basic policy aspects, what is generally covered, what your responsibilities are as a participant, and how you can enroll in the Program.

In short, it is designed to help you understand:

• The DSIP Administration process

• The insurance policies that are providing coverage on the project

• The enrollment features and resources available from Builders Protection Group LLC to help in the process

• Your role, responsibilities, obligations as a construction participant

• Contact information to help address any questions or concerns as they relate to this Program

While this manual is designed to answer/address most questions that may arise from this Insurance Program, you may have some that are still unanswered. Insurance needs to be very clear to you; what it covers and what it doesn’t and what your responsibilities are. Make sure that you consult your Broker or Attorney with any questions. Builders Protection Group LLC (BPG) has been retained to help you and the other construction participants successfully enroll in this Program to ensure the highest degree of protection for you and the project.

Should you have any questions as it relates to the contents of this manual or your responsibilities as a participant in this insurance Program, please contact BPG directly. BPG’s contact information can be found at the end of this manual.

Please remember that BPG is not an insurance company or a licensed insurance agent. As such, please note that neither BPG nor this manual is to be used to interpret actual coverage. Such matters should be addressed with your insurance professional or legal counsel.

An DSIP insurance program is an insurance program that covers designated projects exclusively and may not apply to all other projects on which you may be working.

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Overview of the DSIP Program

First of All, What is a DSIP?

A DSIP, also known as an DSIP (District-Controlled Insurance Program), is a commercial general liability (CGL) insurance policy or policies issued for a designated project or projects which provides coverage for the Program Sponsor, General Contractor, and eligible and enrolled Subcontractors of any tier performing work on the project(s). It will typically include third-party liability coverage for the period of time the construction project is going on, as well as extended "construction defect" coverage for the structures once they have been completed and sold, for a period of up to ten years post-construction.

Why Are There DSIP’s?

Construction projects involve the coordination of many participants: General Contractors, trade Subcontractors, architects, engineers, and material suppliers, among others. Historically, each of these participants would provide some level of insurance to the project. Logically, this made sense; if a loss happened as a result of one party’s work, for example, that party’s insurance should kick in to fix the problem. However, due to the large number of participants involved in a construction project, in conjunction with variations in how the insurance policies were written and interpreted by the courts, the concept of “divide and conquer” took center stage.

As construction defect claims began to hit the court system, insurance companies and attorneys adopted the position of “every man for himself.” This originated as a major problem on residential projects where there were multiple homeowners involved, for example, condominiums, townhomes and large subdivisions. Homeowner associations sued Builders who sued Subs who then sued suppliers, etc. Insurance companies for the General Contractors and Subcontractors quickly began to exclude coverage for work done on these types of projects, and as a result Developers couldn’t find General Contractors or Subcontractors who were able to provide CGL coverage for their work, especially completed operations coverage. These litigation issues have spread to non-residential projects as well, such as the ones included under this Program.

A DSIP Insurance Policy provides coverage for enrolled participants on the named project(s), but will not generally impact participants’ other General Liability Policies.

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Why Should You Use a DSIP?

First, you may not have a choice. Contractors don’t want to jeopardize their business by doing work on projects that aren’t covered under their regular general liability policies. Also, many lenders and municipalities require DSIP for certain types of projects. With that said, there are some other advantages to using a DSIP, including:

• Unified defense to answer for construction defect-related claims throughout the statute of repose

• No “pot of gold” for the plaintiffs’ attorneys - reduces the incentive to sue

• Opens the door for a larger pool of potential contractors to work on the project and to be provided coverage

• Creates an environment of cooperation instead of "divide and conquer”

• Allows newer, more effective and cost-saving strategies in risk management

• Potentially reduces cost of quality insurance for enrolled construction participants

• Generally reduces disputes between participants involved in the designated project(s)

• Mitigates risk through quick response

• Helps ensure timely response to claims to stay in compliance with “right-to-repair” laws

• Provides a unified defense towards potential litigation. Should a need arise for legal representation, all eligible and enrolled participants will be defended by a single highly-competent legal firm instead of all participants having to retain and pay for their own legal counsel at full price.

• Helps address potential claims before litigation can even start

• In conjunction with a comprehensive risk management program, helps to deter, mitigate and defend against frivolous lawsuits

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An DSIP Insurance Program is designed to bring Commercial General Liability exposures under a single coverage umbrella that encompasses all enrolled participants for covered premises operations and completed operations claims that may arise on the designated project(s). The objective is to address a CGL claim in a fashion that provides a unified front, as opposed to the less effective splintered approach.

Another design objective of an DSIP is to mitigate disputes between construction participants of the project and reduce overall costs of doing business for all construction parties involved. A summary of Program benefits/intentions follows:

DSIP Insurance Policy Specifications

Per the DSIP Insurance Binder, the Primary DSIP Policy that is in place to cover the Portland Public Schools Phase 3 DSIP has the following specifications:

Carrier: Crum & Forster Specialty Insurance

Policy Number: GLO-065951

Policy Term/Effective Dates: 5/29/2020 to 5/29/2025

Named Insured(s): Portland Public School District 1J

Limits: Per Occurrence: $2,000,000

General Aggregate: $2,000,000

Products/Completed Ops Aggregate:

$2,000,000

Personal & Advertising Injury: $2,000,000

Self-Insured Retention:

Lead Excess Carrier:

Lead Excess Policy Number:

Lead Excess Limits:

Second Excess Carrier:

Second Excess Policy Number:

Second Excess Limits:

$50,000 Per Occurrence (Enrolled Contractors are responsible for 50% of the deductible) Crum & Forster Specialty Insurance

SEO-108593

$8,000,000 Each Occurrence;

$8,000,000 Aggregate $8,000,000 Products/Com Ops

Endurance American Insurance

ELD30001742700

$10,000,000 Each Occurrence;

$10,000,000 Aggregate;

$10,000,000 Products/Com Ops

Carefully review all features, limits, and exclusions of the DSIP Insurance Policy with your insurance professional or legal counsel. SAMPLE

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Third Excess Carrier:

Third Excess Policy Number:

Third Excess Limits:

Fourth Excess Carrier:

Fourth Excess Policy Number:

Fourth Excess Limits:

Fifth Excess Carrier:

Fifth Excess Policy Number:

Fifth Excess Limits:

Sixth Excess Carrier:

Sixth Excess Policy Number:

Sixth Excess Limits:

Joined Seventh Excess Carrier:

Joined Seventh Excess Policy Number:

Joined Seventh Excess Limits

Great American Assurance

EXC2970028

$15,000,000 Each Occurrence;

$15,000,000 Aggregate;

$15,000,000 Products/Com Ops

Evanston Insurance Company

MKLV5EUE100906

$10,000,000 Each Occurrence;

$10,000,000 Aggregate;

$10,000,000 Products/Com Ops

Ironshore Specialty Insurance 004383800 $15,000,000 Each Occurrence;

$15,000,000 Aggregate;

$15,000,000 Products/Com Ops

Starr Surplus Lines Insurance 1000586373201 $15,000,000 Each Occurrence;

$15,000,000 Aggregate;

$15,000,000 Products/Com Ops

Aspen Specialty Insurance

CX00GX620

Each policy is $12,500,000 part of $25,000,000 Each Occurrence;

Each policy is $12,500,000 part of $25,000,000 Aggregate;

Each policy is $12,500,000 part of $25,000,000 Products/Comp Ops

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Joined Eighth Excess Carrier:

Joined Eighth Excess Policy Number:

Joined Eighth Excess Limits

Pollution Carrier:

Pollution Policy Number:

Pollution Deductible:

Pollution Limits:

Houston Casualty Company

H20XC51435-00

Each policy is $12,500,000 part of $25,000,000 Each Occurrence;

Each policy is $12,500,000 part of $25,000,000 Aggregate;

Each policy is $12,500,000 part of $25,000,000 Products/Comp Ops

Ironshore Specialty Insurance 004382800 $50,000 Each Occurrence (Enrolled Contractors are responsible for 50% of the deductible)

$50,000,000 Each Occurrence;

$50,000,000 Aggregate

Broker Name: Craig Payne

Broker Phone Number: 503-219-3267

Contact the above-listed insurance broker for all specific questions as they relate to limits, endorsements and exclusions of the DSIP Insurance Program..

Information above is based solely on the Insurance Binder(s) and may not reflect total or correct coverage limits, deductibles or self-insured retentions.

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DSIP Insurance Program: Enrollment Process

Our BPG DSIP Enrollment Specialists are there to work with you. We strive to make the DSIP Enrollment Process not only fast and efficient, but educational as well. We will help guide you through the process every step of the way. We are here so you can get on with what you do best – build quality projects.

The DSIP enrollment process consists of the following steps:

1. Secure Construction Contract: As a recipient of a construction contract for the project, you may now be eligible to apply for enrollment in the DSIP Program. This information is communicated to Builders Protection Group LLC (BPG). BPG DSIP Specialists will contact you to make introductions, collect basic contact information and go over the remaining steps for successful enrollment.

2. Enrollment Packet Issuance: A BPG DSIP Administrator will send an enrollment packet to you that contains various forms that will be required for the program. These forms will ask you basic information about your company, license numbers, and whether or not you will employ any Sub- Tier Subcontractors while on the job site. Complete these forms and return them to BPG using the contact info found at the end of this manual.

3. Certificate Collection: Before you can be enrolled, you must provide proof of the following:

• Workers’ Compensation: If you employ any employees in your organization, Workers’ Compensation is required by Oregon law and you cannot work on this project without it. You must provide a copy of an insurance certificate that contains verification of your Workers’ Compensation.

• Commercial Automobile Liability Coverage: As with the Workers’ Compensation, please provide proof of Business Automobile insurance coverage.

• General Liability: While the DSIP Insurance Program is in fact primary for CGL, you must provide a copy of a certificate of insurance evidencing your existing CGL coverage for off-premises exposures.

• Valid License: You must supply your valid contractor’s license on the enrollment form in the appropriate area.

There may be additional insurance or other requirements. Please review your subcontract agreement for specifics.

You may submit these certificates in the same manner you did for the Enrollment forms.

The DSIP Enrollment process can be a quick and simple one. Make sure you contact Builders Protection

Group LLC with any questions at

310 356-4840 SAMPLE

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4. Declarations/Rate Pages: The DSIP program premium for this project has been paid by Portland Public Schools but, since the program covers all eligible and enrolled participants for covered claims, those participants are required to deduct their GL insurance costs from their bids. In order for Builders Protection Group LLC to verify the accurate insurance deduction amount for your company, it will be necessary to review the rates you are being charged under your existing CGL policy. Therefore, you will be required to submit copies of the Declarations and Rate pages from your current CGL policy. See page 13 for more details on this process.

5. Certificate Issuance: Once all of the requested documents and certificates have been submitted and license verification has taken place, you will be issued a Certificate of Enrollment, designating your company as a successfully enrolled participant in the DSIP Program. A copy of this certificate will also be forwarded to the Program Sponsor and the DSIP Broker.

Example Only:

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Covered Entities

In order for a Construction Participant to be eligible for coverage under the Portland Public Schools DSIP policy, it must enroll in the DSIP Program.

Whether or not a party is considered covered under the DSIP Insurance Program is generally defined by the following:

Eligible Parties

• Enrolled General Contractor

• Enrolled Subcontractors working on-site with a valid license and other requisite documents/certificates

• Documented Sub-Tier Subcontractors

Ineligible Parties

• Non-enrolled Subcontractors

• Subcontractors with invalid/expired licenses & requisite certificates

• Sub-Tier Subcontractors that have not been declared

• Vendors/Suppliers

• Transport companies

• Companies that transport or remediate hazardous waste

An enrolled construction participant is a company that has successfully submitted their requisite documents to BPG’s DSIP Administration Personnel and has received a Certificate of Enrollment issued by Builders Protection Group LLC. Should you need further information as to what constitutes an eligible or ineligible party, please contact Builders Protection Group LLC using the contact information found at the end of this manual.

NOTE:

Each Subcontractor is responsible for ensuring that all of its eligible Sub-Tier Subcontractors also complete the enrollment process.

Make sure that you know who is and who is not an eligible entity under the DSIP Policy. Contact

BPG if you are unclear as to what/who may or may not be eligible. SAMPLE

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DSIP Program – Insurance Benefits and Exclusions

The DSIP Program that covers this project is a powerful tool in protecting the Project and those that work on it. While the program covers many aspects of possible claims, there are exclusions. The program should be reviewed thoroughly by yourself, your legal counsel and insurance professional. Key components are:

• The Program includes a General Liability policy, which is designed to cover third-party property damage, bodily injury, personal and advertising injury losses. The limits of all GL policies under this Program are $2,000,000 per occurrence.

• Deductible applicable to enrolled Contractors for the Primary GL and Pollution policy in this Program is: $50,000 per claim

• Subject to the terms and conditions of the Policy, it covers all eligible and enrolled participants. This is a large benefit and makes for fewer headaches, should a claim arise.

• Following the construction period (completed operations), continuing third-party bodily injury and property damage coverage will carry through the Statute of Repose for all eligible and enrolled participants for a period of up to 10 years.

• Contractors Pollution Liability up to $50,000,000 in limits.

• Enrolled Contractors are responsible for 50% of the deductible for the Primary GL and Pollution Policy in the event of a claim.

NOTE:

Coverage under the DSIP applies only to the designated project(s), and is subject to the exclusions, terms and conditions more specifically set forth in the DSIP policy, with limits of liability shared by all insureds.

Existence of the DSIP does not relieve Program participants of any tier from any obligations they may have for obtaining other forms of coverage. On request, Program participants have the opportunity to read and analyze a copy of the DSIP policy or policy binder, which will be provided to them by the Program Sponsor, Contractor or DSIP Broker, to determine whether or not, and the extent to which, the DSIP policy, meets the needs of the Contractors and/or lower tier Subcontractors. Program participant acknowledges that: 1) neither Program Sponsor, DSIP Administrator, nor other Program participant is an agent, broker, partner or guarantor of the insurance company or companies providing coverage under the DSIP (each such insurer, an “DSIP Insurer”); 2) neither Program Sponsor, DSIP Administrator, nor other Program participant is an insurer or is in the business of insurance; 3) neither Program Sponsor, DSIP Administrator, nor other Program participant has at any time provided legal advice to Contractor or lower tier subcontractors, and; 4) neither Program Sponsor, DSIP Administrator, nor other Program participant is responsible in any way for determinations of coverage under the DSIP, payment or non-payment of claims or losses by the DSIP Insurers, the claims handling of the DSIP Insurers, or for the present or future solvency or financial condition of the DSIP Insurers.

An DSIP insurance policy can make for fewer headaches, should a claim arise. SAMPLE

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Your Role and Responsibilities in the Program

As a participant in the Portland Public Schools DSIP Program, you have certain responsibilities. The first step is to enroll your company through Builders Protection Group LLC.

Please keep in mind that the BPG staff is here to help you. While there are certain requirements and documents involved in this process, make sure you let us know how we can make this as easy and educational for you as possible.

Once you have completed the requisite DSIP enrollment forms, you can simply fax in your required certificates. Then, a Certificate of Enrollment will be sent to you providing proof of enrollment.

Required Coverage Maintenance – Away From Project(s)

In addition to the required coverage that all contractors must have by law, each participant must be able to demonstrate coverage for any work performed away from the project site by submitting a Certificate of Insurance (COI).

By signing the DSIP Enrollment form (included in your enrollment packet), you consent to provide proof of Commercial General Liability for operations away from the project site. In addition to proof of CGL coverage, you must provide proof of Commercial Auto Liability Insurance and Workers’ Compensation, if applicable.

Direct Contact/Paper-Based: Provide to Builders Protection Group LLC the following documents:

• Program Enrollment Form (Form 1-A)

• Subcontract Schedule (Form 1-B) declaring the use of any Subcontractors

• Insurance Credit Worksheet Form (Form 1-C)

• A copy of your company’s Workers’ Compensation Certificate (COI), if applicable

• A copy of your company’s Automobile Insurance Certificate (COI)

• A copy of your company’s Commercial General Liability (CGL) Certificate (COI) on projects away from the current project

• A copy of your company’s current CGL Declarations and Rate pages

The above documents can be submitted to Builders Protection Group LLC using the contact info found at the end of this manual.

Enrollment in the DSIP Program is not automatic. You should understand your responsibilities as a DSIP Participant and what you must do to be successfully enrolled.

Contact Builders Protection Group LLC with any questions you may have.

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In addition to enrollment, you are obligated to:

• Perform all warranty work as outlined in your Subcontract Agreement for the noted statute of repose.

• Notify Builders Protection Group LLC immediately of any material changes to your company in regards to address, contact names, contact numbers, license changes, etc.

• Notify Builders Protection Group LLC immediately of any and all Subcontractors of any tier you intend to use on the project. Any Subcontractors of any tier not enrolled may not be covered under the DSIP policy. The Subcontractors’ information can be submitted by completing the requisite information on Form 1-B.

• Work within all set guidelines for claims reporting and safety as is determined through your construction contract. All questions on this should be directed to Builders Protection Group LLC or the party with which you have a contract. Complete and submit the DSIP Program Incident Reporting Form (attached to this manual).

• Ensure that all licenses and insurance certificates are maintained in valid status throughout the course of the project(s).

No eligible construction participant will be permitted on the project jobsite until they have been enrolled.

While it is not necessary to cover the project on your own CGL policy, you must provide evidence of CGL coverage away from the project site. SAMPLE

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Enrollment of Subcontractors of Any Tier

If you are employing a Subcontractor, you must declare them on a Subcontractor Schedule (Form 1B) (included in your enrollment packet).

Please submit this form with your other enrollment documents. If you need another copy of Form 1B, please contact BPG DSIP Services.

In order for any work performed by any of your Subcontractors to be covered under the DSIP Insurance Program, you must complete the Subcontractor Schedule (Form-1B) pictured above. A copy of this form is included in your enrollment packet.

If you are employing any Subcontractors of any tier, you must provide requisite information on them on a Form 1-B

(provided in your Enrollment Packet). SAMPLE

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Required Coverage – Subcontractors of Any Tier

If you are a construction participant that will be employing the services of any Subcontractor you must ensure (and consistently monitor) that each Sub has:

• Valid contractor license

• Auto liability insurance

• General liability insurance

• Workers’ compensation insurance (if applicable)

If any changes occur to a Subcontractor’s insurance status, all changes must be made known to Builders Protection Group LLC immediately.

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Participant Verification of Insurance Cost

Because the insurance program that covers this project is an DSIP Program, this project need not be reflected on your existing Commercial General Liability (CGL) insurance policy(ies). As such, when you are being audited by your existing CGL carrier, you may decide to exclude this project from your own coverage so you should receive a premium credit. Keep in mind, your work is being insured against covered CGL claims under the DSIP, not under your own CGL policy. The DSIP policy premium for this project has been paid by the Program Sponsor, but since the policy covers all eligible and enrolled participants for covered claims, those participants are required to deduct their own GL insurance costs from their bids.

As an enrolled participant, your deduct amount will be verified by the DSIP Administrator, Builders Protection Group LLC. This deduct is determined based on your scope of work and total contract value or estimated payroll, depending on how you are charged by your current CGL carrier. Any change orders will likewise have this deduction verified.

In order for Builders Protection Group LLC to verify the accurate deduct amount for your company, it will be necessary to review the rates you are being charged under your existing CGL policy in effect at the time of your enrollment.

Therefore, you will be required to submit copies of the Declarations and Rate pages from your current CGL policy along with your completed Enrollment package documents.

Before you can be enrolled, the above-mentioned deduct will be verified and submitted to the Program Sponsor. This avoids any potential confusion later in the project and ensures that coverage does not become interrupted for your portion of the project.

If you have employed any Subcontractors, it is the task of your organization to realize any insurance deducts from those Subcontractors.

Should there be any return of any insurance premiums, the Sponsor retains sole claim to these funds.

This DSIP Program is designed to protect all enrolled participants, including you and your company. As such, each participant will be required to deduct the costs of their own GL coverage from their bids.

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Safety Program

You must have a safety program in place to help ensure the safety of all personnel on the job site. Before beginning work on the project, your Safety Program should be submitted for review to the Sponsor or Sponsor’s representative within 15 days of the enrollment in the Program.

Safety is of the utmost importance and, as such, sufficient safety programs and precautions must be put into place. The Sponsor reserves the right to audit any of the construction participants’ safety programs. Should it be determined that the safety program is deficient in any way; the Sponsor may make recommendations to bring the program in line with its requirements. If the construction participant does not comply with these requirements, then the Sponsor retains the right to disqualify the contractor from the DSIP Insurance Program.

Your contract contains specific wording as it relates to safety and accident prevention. You must ensure that you comply with those guidelines, or that your program surpasses the standards listed in that section. In the event of a dispute as it relates to which program is to be followed, the guidelines set forth in the contract will always supersede other guidelines.

If you are employing any Subcontractors, you are solely responsible for the safety program compliance of any of those individuals/firms.

Safety is the most important focus on any job site. Ensure that you have your safety program submitted to the Sponsor and that you understand the Safety Program requirements as they are outlined in your contract.

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Emergency Contingency Plans

Each company represented in the project and that has been successfully enrolled must ensure it has a contingency plan in place for the following potential scenarios:

• Onsite injuries, both major and minor

• Plan to avoid and/or treat injuries arising from natural disasters/conditions including floods, earthquakes, fires, high wind, tornadoes, hurricanes, and lightning storms

• Hazmat scenarios

• Potential damage/injury to any person(s) not associated with the project including the public and property outside of the lines of the Project

• Injuries to the general public on/or adjacent to the work site

Always have a contingency plan in place for emergency situations such as the ones listed to the left. SAMPLE

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Incident/Claims Reporting

Liability Claims

Throughout the course of the Program, there may be a scenario that arises where a claim may be reported. It is critical that the process for handling these situations is carefully followed. Various types of claims can be classified as the following:

• Property Damage

▪ On-Site Work: Throughout construction or completed construction

▪ Off-Site Work: This typically involves surrounding property, neighboring areas, etc. Most of this happens throughout the course of construction

▪ Completed Ops: This arises from damage that occurs after the project’s units have been completed. These are what may be commonly referred to as construction defect issues - scenarios such as leaky roofs, flooring issues, etc. Situations from these types of scenarios can lead to costly and prolonged litigation.

If properly handled, most of these issues can be resolved without further incident.

• Bodily Injury

▪ Non-Participant: Anybody not covered by the policy/Program.

This could include the general public.

▪ Participant: Injury to covered parties on the job-site.

The Reporting Claims Process

Reporting claims in a timely manner is absolutely critical to keep the claims cost down and to help mitigate the chances for any issue to be blown out of proportion into something far bigger than necessary. Each participant has a responsibility for ensuring that a claim is reported both quickly and accurately.

Should a claim arise, you MUST let the Program Administrator (Builders Protection Group LLC) know within twenty four (24) hours of the occurrence.

While an incident/claim that arises from any automobile-related issue is not generally covered away from the project site, it MUST be reported in the same fashion as any other issue. A DSIP Program Incident Reporting Form can be found at the back of this manual. The process of claims reporting is a fact-based process so subjective opinions of interpretation should be avoided when both reporting and speaking to parties outside the Program. You should contact BPG by phone to make us aware of the issue and then fax in the DSIP Program Incident Reporting Form with any accompanying documentation to our offices.

The key to keeping claims cost down is quick, accurate, and complete reporting of any problems as they arise. Should an incident occur, notify Builders

Protection Group LLC within twelve (12) hours of the occurrence.

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Program Administration Contact Information

Builders Protection Group LLC is the Program Administrator. Below is a summary of useful contact information that will help you answer any questions that you may have. All questions should initially be directed to Builders Protection Group LLC.

Program Administrator

Company: Builders Protection Group LLC Address: 1852 Lomita Blvd. Suite 210 City, State, ZIP Lomita CA 90717 Phone: 310 356-4840 Fax: 310 220-2374 E-mail: renata@buildersprotect.com

DSIP Insurance Broker

Company: Brown & Brown Northwest Contact Name: Craig Payne Address: 2701 NW Vaughn Street

Suite: 340 City, State ZIP: Portland, OR 97210 Phone: 503.219.3267 E-mail: cpayne@bbnw.com

If you have questions, Builders Protection

Group LLC is here to help you through the process so you can focus on what you do best – creating quality buildings. SAMPLE

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APPENDIX

Builders Protection Group LLC

Builders Protection Group LLC DSIP Insurance Incident Reporting Form

Portland Public Schools Phase 3 DSIP Program – Incident Reporting

Form

Instructions:

• Call Builders Protection Group LLC to report the incident/claim at 310.356.4840 within twenty four (24) hours. Have all relevant information (listed below) ready.

• Complete this form in its entirety. If this form has insufficient room to provide adequate description of events or involved individuals, please use additional paper.

• Fax this form to Builders Protection Group LLC at 310.321.5352 (Attn: Claims Reporting – EXPEDITE) or email: claims@buildersprotect.com

• A copy of this will be forwarded to the Program Insurance Broker by Builders Protection Group LLC.

Company Name:

Project Name:

Date/Time of Incident:

Date of Report:

Reporting Individual:

Individual’s Phone #:

Individuals Involved:

Description of Incident:

Initials /

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DSIP ADDENDUM

This Addendum to the Construction Contract (the “Addendum”) is made a material part of the construction contract or subcontract (the “Contract”), whether written or oral, entered into on June 18, 2019 by and between Andersen Construction (“Contractor”), and Portland Public School District (“Sponsor”) for work included in the District Specific Insurance Program (“DSIP”).This Addendum supersedes all prior or contemporaneous agreements between the parties in connection with the matters set forth herein, including Exhibit E of the construction contract.

Whereas, for good and valuable consideration, receipt and sufficiency of which is hereby acknowledged, Sponsor desires to implement an (DSIP), for certain insurable risks as set forth in the DSIP policy. The primary DSIP policy is placed with Crum and & Forster Specialty Insurance Company (“C&F”) and mandates, among other requirements, a third party wrap up administrator, and that shall be Builders Protection Group LLC (“DSIP Administrator”). Contractor has reviewed and approved the DSIP Policy. The following provisions shall be added to the Contract as though fully set forth therein. These provisions may amend, supersede or add to existing language in the Contract as set forth herein. Contractors agree that compliance with the terms and conditions of the DSIP is a material part of the Contract, and the following amendments and/or modifications are effective as of the date of the Contract. The amendments and/or modifications are fully incorporated therein. In the event of any conflict between this Addendum and the Contract or other Contract Documents, the terms of this Addendum shall control.

Now therefore, the parties agree to the following terms and conditions of this Addendum:

1. DSIP Insurance and Indemnity Provision: the following provisions are hereby incorporated into the contract:

1.1. The Sponsor of this project has elected to purchase a District Specific Insurance policy (DSIP) naming it, as well as other designated Contractors, and for certain risks associated with the project as set forth by the Sponsor. The Enrollment process is defined by the policy and detailed through documents, which will be made available by the DSIP Administrator or Broker. The provisions of the Contract regarding Contractor’s obligation to provide Commercial General Liability and Umbrella / Excess Commercial General Liability insurance for this project are hereby superseded, except as specifically set forth in this Addendum. Contractors are enrolled in the DSIP upon the issuance of a Certificate of Enrollment. Enrollment must take place prior to commencement of work performed on the project. All Contractors and other Contractors shall be enrolled in the DSIP through the DCIP Administrator.

1.2. Risks covered and not covered by the DSIP are listed in the Program insurance policies. It is the Contractors responsibility to review and, obtain any desired legal review and analysis it deems appropriate and, in its judgment, necessary regarding the Program. There are no representations regarding the nature, quality or limits of the Program policies and Contractors expressly acknowledges the lack of reliance upon any representations made by Sponsor, Contractors, the DSIP Administrator or their representatives regarding the nature, quality or limits of the insurance provided by the Program. The Program is intended to be the primary source of coverage for the risks covered and shall be primary to and will not contribute with Contractors or Enrolled Subcontractor’s insurance, if any, in the Program covered areas of risk.

The Sponsor has elected to purchase DSIP Policies as part of any DSIP, the intent of which is to provide insurance for the Sponsor, the Contractor, and all other Enrolled Contractors.

A complete copy of all DSIP Policies will be filed with the Contractor within a reasonable time after the DSIP Policies are bound. The Sponsor and Contractor acknowledge and agree that: (1) such DSIP Policies are in lieu of Contractor’s and any other Enrolled Subcontractor’s obligation to provide general liability and excess liability policies covering claims for bodily injury, property damage and personal injury arising out of On-site Work; (2)

1229360\v3 2 that coverage for On-site Work will be excluded from the Contractor’s and all other Enrolled Subcontractors’ existing general liability and excess liability policies.

Sponsor Indemnitees agree to look first to the DSIP for recourse and the Contractor’s indemnity obligations under this DSIP Addendum or other Contract Documents shall be secondary to such insurance. Notwithstanding any other language to the contrary, Sponsor and Contractor agree to cooperate with each other and to provide each other will all reasonable assistance in connection with submitting insurance claims relating to the Project to the CIP insurers or to either party’s insurers as appropriate. Any insured-on-insured or cross-suit exception shall not apply to the Sponsor and General Contractor.

Notwithstanding any provision in this Addendum seemingly to the contrary, Sponsor may make such claims or take such actions as it deems necessary to trigger or preserve coverage.

Following is an outline of the DSIP terms and coverage.

The effective date of the DSIP program is December 31, 2019 and expirers December 31, 2023 or as otherwise extended. The coverage also provides an extended reporting period equal to 10 years or the Statutory Period of Repose in the State of Oregon.

Commercial General Liability – C&F

Each Occurrence Limit $2,000,000 General Aggregate Limit $2,000,000 Products-Completed Operation Aggregate Limit $2,000,000 Personal & Advertising Injury $2,000,000

Excess Liability Limits

Each Occurrence Limit $100,000,000 General Aggregate Limit $100,000,000 Products-Completed Operation Limit $100,000,000

Excess Insurers are as follows;

o C&F o Endurance o Great American o Ironshore o Axis

The Commercial General Liability and Excess coverage shall include all major coverage categories including bodily injury, property damage, and products and completed operations coverage maintained for 10 years.

The DSIP program is Primary and Noncontributory, allows and offers coverage to enrolled contractors that render the completed work to prefect warranty and or call back work, offers per project general aggregate and products-completed operations capped at 5 times the policy aggregate and covers work within a 1000 foot radius of the jobsite.

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In the event of any loss or claim that is covered under the DSIP General Liability, the Sponsor shall allocate, to the Enrolled Contractor who, with its Subcontractors, contributed to such loss or claim, a share of the DSIP deductible or SIR based on Project Costs as outlined below:

PROJECT COST

MINIMUM

PROJECT COST

MAXIMUM

PER OCCURRENCE

DEDUCTIBLE/SIR CAP

$0 > $5,000,000 $5,000

$5,000,001 > $25,000,000 $10,000

$25,000,001 > $50,000,000 $15,000

$50,000,001 > $75,000,000 $30,000

$75,000,001 > $50,000

For example, for a covered claim on a $10m construction contract, resulting in a $10,000 per occurrence deductible/SIR cap, the Owner would determine and allocate to the Enrolled Contractor the collective contribution of the Enrolled Contractor and its Subcontractors. Assuming that determination is 80%, the Enrolled Contractor would pay $8,000 of the deductible/SIR to the Owner within 10 days of invoicing by the Owner, and the Enrolled Contractor would reserve the right to reimbursement from its Subcontractors for their share of such deductible/SIR contribution.

Contractors Pollution Liability

Per Occurrence Limit $ 50,000,000 Aggregate Limit for all Pollution Conditions $ 50,000,000

Insures is as follows:

• Ironshore Specialty Insurance Company

The Contractors Pollution Policy covers Bodily Injury and Property Damage arising from a Pollution Conditions. Pollution Condition means the discharge, dispersal, release, escape, migration, or seepage of any solid, liquid, gaseous or thermal irritant, contaminant or pollutant, including soil, sedimentation, silt, smoke, soot, vapors, fumes, acids, alkalis, chemicals, hazardous substances, hazardous materials, including lead and asbestos, or waste materials, on, in, into, or upon land structures thereupon, the atmosphere, surface water or groundwater. This policy covers the ongoing and completed operation equal to 10 years to cover the statutory period of repose.

In the event of any loss or claim that is covered under the DSIP Pollution Liability, the Sponsor shall allocate, to the Enrolled Contractor who, with its Subcontractors, contributed to such loss or claim, a share of the DSIP deductible or SIR based on Project Costs as outlined below:

PROJECT COST

MINIMUM

PROJECT COST

MAXIMUM

PER OCCURRENCE

DEDUCTIBLE/SIR CAP

$0 > $5,000,000 $5,000

$5,000,001 > $25,000,000 $10,000

$25,000,001 > $50,000,000 $15,000

$50,000,001 > $75,000,000 $30,000

$75,000,001 > $50,000

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For example, for a covered claim on a $10m construction contract, resulting in a $10,000 per occurrence deductible/SIR cap, the Owner would determine and allocate to the Enrolled Contractor the collective contribution of the Enrolled Contractor and its Subcontractors. Assuming that determination is 80%, the Enrolled Contractor would pay $8,000 of the deductible/SIR to the Owner within 10 days of invoicing by the Owner, and the Enrolled Contractor would reserve the right to reimbursement from its Subcontractors for their share of such deductible/SIR contribution.

1.3. Participant agrees to furnish appropriate information, as detailed by the DSIP Administrator, of all sub-tier subcontractors that will perform work on the project on behalf of the Contractor. Contractor shall incorporate the terms of this Addendum into all construction sub-tier subcontracts and assure each sub-tier subcontractor's compliance with the requirements of the DSIP, this Addendum, and/or in the Contract Documents for the term of each subcontract. All eligible sub-tier subcontractors will be enrolled in the DSIP.

1.4. Subcontractor agrees to follow and complete all enrollment procedures and insurance cost reporting procedures. Subcontractor shall exclude from bids the full cost of Subcontractor’s own CGL insurance. The DSIP Administrator shall review all insurance bid deduct information and identify Subcontractor’s minimum reduction in insurance costs (“Insurance Credit”) due to eligibility for the DSIP Coverages. Subsequent change order proposals shall be submitted exclusive of all CGL insurance costs, and Contractor shall identify an additional Insurance Credit following the same procedure identified above.

Sponsor reserves the right to audit Subcontractor’s actual CGL exposures and a final adjusted Insurance Credit may be calculated by Contractor.

1.5. Subcontractor acknowledges receipt of DSIP Contractor Guidebook/Manual, contained herein, and agrees to perform provisions set forth.

1.6. The Sponsor and Contractor waive all rights against each other and the Enrolled Subcontractors and employees each of the other for damages to the extent covered and actually paid by the DSIP Policies obtained pursuant to this Insurance Exhibit. The Contractor shall require from all Enrolled Subcontractors under its control, by appropriate written agreements, similar waivers each in favor of all other parties enumerated in this subparagraph. The DSIP Policies shall provide such waivers of subrogation by endorsement or otherwise. A waiver of subrogation shall be effective as to a person or entity even though that person or entity would otherwise have a duty of indemnification, contractual or otherwise, did not pay the insurance premium directly or indirectly, and whether or not the person or entity had an insurable interest.

1.7. Notice. All notices, requests, demands, and other communications required or permitted to be given under this Addendum shall be in writing and shall be conclusively deemed to have been duly given when hand delivered to the other party.

1.8. Failure to Maintain. If the Sponsor does not intend to purchase or maintain the DSIP policies required in this Exhibit and with all the coverages in the amount described above, the Sponsor shall so inform the Contractor in writing. The Contractor may then affect insurance that will protect the interests of the Sponsor, Contractor, and the Enrolled Subcontractor’s, and shall be entitled to an adjustment to the Contract Sum for the full cost thereof. If the Contractor is damaged by the failure or neglect of the Sponsor to purchase or maintain insurance as described above, without so notifying the Contractor in writing, then the Sponsor shall bear all reasonable costs properly attributable thereto.

1.9. Failure to Pay Self-Insured Retention or Deductible: DSIP Insurance is subject to a Self-Insured Retention or Deductible (“SIR”). If Sponsor fails to pay or bear the SIR for claims in the event of an occurrence, offense, claim or suit in excess of the SIR, that results in any reduction of or denial of coverage and such reduction of or denial of

1229360\v3 5 coverage results in a loss or reduction of insurance coverage (“Insurance Shortfall”), Sponsor shall bear all risk of loss for the claim to the extent of the Insurance Shortfall.

1.10. Exhaustion of Limits. If, at any time during performance of the Work or the Completed Operations Period, the limits available under the DSIP Policies provided by the Sponsor pursuant to this Exhibit are exhausted or the insurance carriers providing such DSIP policies are insolvent or otherwise unable to perform their obligation, the Sponsor shall provide for replacement policy with all of the coverages in the amount described herein.

1.11. Negotiated Agreement. The terms of this Addendum have been negotiated by the parties hereto and the language used in this Addendum shall be deemed to be the language chosen by the parties hereto to express their mutual intent. This Addendum shall be construed without regard to any presumption or rule requiring construction against the party causing such instrument or any portion thereof to be drafted, or in favor of the party receiving a particular benefit under the agreement. No rule of strict construction will be applied against any person. Any finding of invalidity of any portion or provision of this Addendum will not impair the legal validity of the rest of the provisions of this Addendum.

1.12. Entire Agreement; Signatures. The terms set forth in this Addendum are intended by the parties as a final expression of their agreement with respect to terms included herein. This writing is intended as a complete and exclusive statement of the terms of the agreement between the parties. This Addendum may be modified only by an agreement in writing supported by new consideration.

2. Contractor and Subcontractor Insurance Requirements outside of the DSIP program:

Contractors and subcontractors agree to have all required coverage that contractors must have by law. In addition, the following coverages will be in place and required of any Subcontractor not enrolled in the DSIP program for both on-site and off-site operations.

2.1 CONTRACTOR’S AND ENROLLED SUBCONTRACTOR’S INSURANCE

2.1.a Required Coverage.