BB_-_Insurance_Requirements.pdf

ATTACHMENT BB

INSURANCE REQUIREMENTS

Respondents (referred to in this Exhibit as “Contractor”) must provide evidence of ability to obtain the required insurance, such as a commitment letter from an underwriter confirming that Contractor is insurable for the required coverages in the required limits.

1. INDEMNIFICATION CLAUSE: Contractor (“Indemnitor”) must indemnify, defend, save and hold harmless the City and its officers, officials, agents, and employees (“Indemnitee”) from and against any and all claims, actions, liabilities, damages, losses, or expenses (including court costs; attorney fees; and costs of claim processing, investigation and litigation) (“Claims”) caused, or alleged to be caused, in whole or in part, by the wrongful, negligent or willful acts, errors, or omissions of Contractor or any of its owners, officers, directors, agents, employees or subcontractors in connection with the Lease and this RCS. This indemnity includes any Claim arising out of or recovered under the Workers’ Compensation Law or arising out of the failure of Contractor to conform to any federal, state or local law, statute, ordinance, rule, regulation or court decree. Contractor must indemnify Indemnitee from and against any and all Claims, except those arising solely from Indemnitee’s own negligent or willful acts or omissions. Contractor will be responsible for primary loss investigation, defense and judgment costs where this indemnification applies. In consideration of the award of the Lease, Contractor waives all rights of subrogation against Indemnitee for losses arising from the work performed by Contractor for the City. The obligations of Contractor under this provision survive the termination or expiration of the Lease.

2. INSURANCE REQUIREMENTS: Contractor and subcontractors must procure and maintain insurance against claims that may arise from or relate to performance of the work hereunder by Contractor and its agents, representatives, employees and subcontractors. Contractor and subcontractors must maintain that insurance until all their obligations have been discharged, including any warranty periods under the Lease.

These insurance requirements are minimum requirements for the Lease and in no way limit the indemnity covenants contained in this RCS. The City in no way warrants that the minimum limits stated in this section are sufficient to protect the Contractor from liabilities that might arise out of the performance of the work under the Lease by the Contractor, its agents, representatives, employees or subcontractors and Contractor is free to purchase additional insurance as may be determined necessary.

A. SCOPE AND LIMITS OF INSURANCE: Contractor must provide coverage with limits of liability not less than those stated below. An excess liability policy or umbrella liability policy may be used to meet the liability limits provided (1) the coverage is written on a “following form” basis, and (2) all terms under each line of coverage below are met.

1. Commercial General Liability – Occurrence Form Policy must cover liability arising from premises, operations, independent contractors, products-completed operations, personal and advertising injury and liability assumed under an insured contract.

• General Aggregate $2,000,000

• Products – Completed Operations Aggregate $1,000,000

• Personal and Advertising Injury $1,000,000

• Each Occurrence $1,000,000

• Fire Damage (Damage to Rented Premises) $ 100,000

• Liquor Liability (if applicable) $1,000,000

a. The policy must name the City of Phoenix as an additional insured with respect to liability for bodily injury, property damage and personal and advertising injury with respect to premises, ongoing operations, products and completed operations and liability assumed under an insured contract arising out of the use and/or occupancy of the property subject to this Lease.

b. Policy must not contain any restrictions of coverage for operations on or near airport premises.

c. There shall be no endorsement or modification which limits the scope of coverage or the policy limits available to the City of Phoenix as an additional insured.

d. City of Phoenix is an additional to the full limits of liability purchased by the Contractor.

e. The Contractor’s insurance coverage must be primary and non-contributory with respect to any insurance or self-insurance carried by the City.

2. Automobile Liability

Bodily Injury and Property Damage for any owned, hired, and non-owned vehicles used in the performance of the Lease.

• Combined Single Limit (CSL) – airside driving (including contracted deliveries of goods and services) $5,000,000

a. The policy shall not contain any restrictions of coverage for operations on or near the Airport.

b. The policy must be endorsed to include the City of Phoenix as an additional insured with respect to liability arising out of the activities performed by or on behalf of the Contractor, relating to the Lease.

c. City of Phoenix is an additional insured to the full limits of liability purchased by the Contractor.

d. The Contractor’s insurance coverage must be primary and non-contributory with respect to any insurance of self-insurance carried by the City.

3. Worker's Compensation and Employers' Liability

Workers' Compensation Statutory Employers' Liability

Each Accident $1,000,000 Disease – Each Employee $1,000,000 Disease – Policy Limit $1,000,000

a. Policy must contain a waiver of subrogation against the City of Phoenix.

“Transfer of rights of recovery against others to us” may be used in place of “waiver of subrogation”.

b. This requirement shall not apply when a contractor or subcontractor is exempt under A.R.S. 23-902 (E), AND when such contractor or subcontractor executes the appropriate sole proprietor waiver form.

4. Property Insurance

Coverage for Contractor’s leasehold improvements Replacement Value Coverage for Contractor’s contents/equipment Replacement Value

a. If Contractor is the sole occupant, Contractor must purchase property insurance for the building. Coverage must be written on a Special Causes of Loss property insurance form with replacement cost value, including coverage for flood and earth movement.

b. The City of Phoenix must be named as a loss payee if Contractor is a sole occupant and/or if Contractor is making tenant improvement(s).

c. Contractor tenant improvements must be insured. Coverage must be written or a Special Causes of Loss property insurance form with replacement cost value.

d. Policy must contain a waiver of subrogation against the City of Phoenix.

5. Fidelity Bond or Crime Insurance – Employee Theft

The bond or crime policy shall provide coverage for loss of monies belonging to the City under the terms of the Lease as a result of theft by Contractor’s employees.

Bond or Policy Limit: $10,000

a. The bond or policy shall include coverage for all directors, officers, agents and employees of the Contractor.

b. The bond or policy must include coverage for third party fidelity, i.e. property of the Contractor that is held by the Contractor in any capacity, or property for which the Contractor is legally liable.

c. The bond or policy shall not contain a condition requiring an arrest and conviction.

B. ADDITIONAL INSURANCE REQUIREMENTS: The policies shall include, or be endorsed to include, the following provisions:

1. On insurance policies where the City of Phoenix is named as an additional insured, the City of Phoenix must 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 Lease.

2. The Contractor insurance coverage will be primary insurance and non-contributory with respect to all other available sources.

C. NOTICE OF CANCELLATION: For each insurance policy required by the insurance provisions of this Lease, the Contractor must provide to the City, within five (5) business days of receipt, a notice if a policy is suspended, voided or cancelled for any reason. Such notice shall be mailed, emailed, hand-delivered or sent by facsimile transmission to:

City of Phoenix Aviation Department - Business and Properties Division 2485 E. Buckeye Road Phoenix, AZ 85034 Fax Number: 602-273-4083 Email: aviation.business@phoenix.gov

D. ACCEPTABILITY OF INSURERS: Insurance is to be placed with insurers duly licensed or authorized to do business in the state of Arizona and with an “A.M. Best” rating of not less than B+ VI or a Standard and Poor’s Rating (if rated) if not less than BBB. The City 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 the City with certificates of insurance (ACORD form or equivalent approved by the City) as required by the Lease.

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 City before work commences. Each insurance policy required by this Lease must be in effect at or prior to commencement of this Lease and remain in effect for the duration of the Lease. Failure to maintain the insurance policies as required by this Lease or to provide evidence of renewal is a material breach of contract.

Contractors shall furnish the City with original certificates and amendatory endorsements or copies of the applicable policy language affecting coverage required by this clause. All certificate and endorsements are to be received and approved by The City before work commences. However, failure to obtain the required documents prior to the work beginning shall not waive the Contractor’s obligation to provide them.

The City reserves the right to review complete certified copies of all required insurance policies, including endorsements required by these specifications.

Where the City is named as an additional named insured, coverage must be as broad as CG 20 10 11 85 or a combination of CG 20 10 or CG 20 26 or CG 20 23 22, 10 01 Editions or equivalent.

mailto:aviation.business@phoenix.gov

The City Department, Lease number and location or description are to be noted on the certificate of insurance. The City reserves the right to require complete, certified copies of all insurance policies and endorsements required by this Lease at any time. DO

NOT SEND CERTIFICATES OF INSURANCE TO THE CITY'S RISK MANAGEMENT

DIVISION.

The initial certificates required by this Lease shall be sent directly to:

Aviation Department - Business and Properties Division 2485 E. Buckeye Road Phoenix, AZ 85034 Fax Number: 602-273-4083 Email: aviation.business@phoenix.gov

All subsequent and renewal certificates of insurance and endorsements shall be sent directly to:

Aviation Department c/o Exigis Insurance Compliance Services PO Box 4668 – ECM #35050 New York, NY 10163-4668 Email: inbox@cop.complianz.com

F. SUBCONTRACTORS: Contractor’s certificate(s) shall include all contractors and subcontractors as additional insureds under its policies or Contractor shall be responsible for ensuring and verifying that all contractors and subcontractors have valid and collectable insurance. At any time throughout the life of the Lease, the City of Phoenix reserves the right to require proof from the Contractor that its subcontractors have insurance coverage. All subcontractors providing services included under this Lease are subject to the insurance coverages identified above and must include the City of Phenix as an additional insured. In certain circumstances, the Contractor may, on behalf of its subcontractors waive a specific type of coverage or limit of liability where appropriate to the type of work being performed under the subcontract. Contractor assumes liability for all subcontractors with respect to this Lease.

G. SUBLESSEES AND PARTNERS: If Contractor is approved by the City to sublease any part of the Leases Premises, sublease must adhere to the insurance specifications stated in the Lease.

H. APPROVAL: Any modification or variation from the insurance coverages and conditions in this Lease must be documented by an executed contract amendment.

mailto:aviation.business@phoenix.gov mailto:certificates-cityofphoenix@riskworks.com