CM@R Minimum Insurance Reuirements.pdf

SPECIFIC INSURANCE REQUIREMENTS

Construction Manager-Provided Insurance Program. The Construction Manager shall provide insurance and the Owner is not required to provide insurance. The Owner will communicate and cooperate with the Construction Manager and the Construction Manager’s insurance broker, as required.

The Construction Manager shall purchase and maintain at all times that it is performing services under this Contract For Construction, at its expense, from a company or companies authorized to do business in the state in which the Project is located, insurance policies containing the following selected types of coverages and minimum limits of liability protecting from claims which may arise out of or result from the performance or non-performance of services under this Contract For Construction by the Construction Manager or by anyone directly or indirectly employed by it, or by anyone for whose acts it may be liable:

Workers' Compensation, Disability Benefit, or similar employee benefit act coverage, and employer's liability coverage, as required by the state in which the Project is located. The cost of such insurance is included in the Construction Manager’s Management Fee as part of the Construction Manager’s profit and overhead.

Commercial General Liability which (a) includes premises/operations, product/completed operations, contractual liability, independent contractors, broad-form property damage, underground, explosion and collapse hazard, and personal / advertising injury; and (b) names the Owner and the Owner’s Related Parties as additional insureds, with per-occurrence limits of not less than five million ($5,000,000) Dollars. The cost of such insurance is included in the Construction Manager’s Management Fee as part of the Construction Manager’s profit and overhead.

Commercial Comprehensive Automobile Liability which includes contractual liability coverage and coverage for all owned, hired, and non-owned vehicles with limits of not less than two million ($2,000,000) Dollars per accident for bodily injury and property damage, or four million ($4,000,000) Dollars combined single limit. The cost of such insurance is included in the Construction Manager’s Management Fee.

Builder’s Risk Insurance which (a) includes without duplication, but is not limited to, fire (with extended coverage), theft, vandalism, malicious mischief, collapse, earthquake, flood, windstorm, falsework, testing and startup, temporary buildings and debris removal; and (b) names the Owner and the Owner’s Related Parties, with coverage for one hundred (100%) percent of the insurable value of the Construction Manager’s scope of the Work, and a per-claim deductible equal to or less than Ten thousand ($10,000) Dollars. The cost of such insurance is included in the Construction Manager’s General Conditions Cost.

Other Insurance – not applicable

GENERAL INSURANCE REQUIREMENTS

The Contractor shall have and maintain in full force and effect for the duration of this Agreement, insurance insuring against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the Work by the Contractor, its agents, representatives, employees or subcontractors. All policies shall be subject to approval by the County Attorney to form and content.

These requirements are subject to amendment or waiver if so approved in writing by the County Manager.

Minimum Limits of Insurance: Contractor shall maintain the following insurance policies with limits no less than:

Comprehensive General Liability policy of $1,000,000 (one million dollars) combined single limit per occurrence $2,000,000 (two million dollars) aggregate for bodily and personal injury, sickness, disease or death, injury to or destruction of property, including loss of use resulting therefrom.

Comprehensive Automobile Liability policy (covering owned, non-owned, and hired automobiles) of $1,000,000 (one million dollars) combined single limit per occurrence $2,000,000 (two million dollars) aggregate for bodily and personal injury, sickness, disease or death, injury to or destruction of property, including loss of use resulting therefrom.

General Liability policy of $5,000,000 (five million dollars) for claims arising out of Architect services and caused by the Contractor’s errors, omissions, or negligent acts.

Workers' Compensation policy with limits as required by the State of Georgia and Employers Liability limits of $1,000,000 (one million dollars) per accident.

Deductibles and Self-Insured Retentions: Any deductibles or self-insured retentions must be declared to and approved by the County in writing.

Other Insurance Provisions: The policy is to contain, or be endorsed to contain, the following provisions:

General Liability and Automobile Liability Coverage.

o The County and County Parties are to be covered as insureds as respects: liability arising out of activities performed by or on behalf of the Contractor; products and completed operations of the Contractor; premises owned, leased, or used by the Contractor; automobiles owned, leased, hired, or borrowed by the Contractor. The coverage shall contain no special limitations on the scope of protection afforded to the County or County Parties.

o The Contractor’s insurance coverage shall be primary noncontributing insurance as respects to any other insurance or self-insurance available to the County or County Parties. Any insurance or self-insurance maintained by the County or County Parties shall be in excess of the Contractor’s insurance and shall not contribute with it.

o Any failure to comply with reporting Provisions of the policies shall not affect coverage provided to the County and County Parties.

o Coverage shall state that the Contractor’s insurance shall apply separately to each insured against whom claim is made or suit is brought.

o Coverage shall be provided on a “pay on behalf” basis, with defense costs payable in addition to policy limits. There shall be no cross-liability exclusion.

o The insurer shall agree to waive all rights of subrogation against the County and

County Parties for losses arising from work performed by the Contractor for the County.

Workers' Compensation Coverage: The insurer providing Workers’ Compensation Coverage will agree to waive all rights of subrogation against the County and County Parties for losses arising from work performed by the Contractor for the County.

Builder’s Risk Insurance. Contractor shall provide a Builder’s Risk Insurance Policy to be made payable to the County and Contractor, as their interests may appear. The policy amount shall be equal to 100% of the Contract price, written on a Builder’s Risk “All Risk,” or its equivalent.

The policy shall provide, or be endorsed to provide, as follows: “The following may occur without diminishing, changing, altering or otherwise affecting the coverage and protection afforded the insured under this policy: i) Equipment may be delivered to the insured premises and installed in place ready for use; and ii) Partial or complete occupancy by Owner; and iii) Performance of Work in connection with construction operations insured by the Owner, by agents or lessees, or other Contractors of the Owner or Using Agency.”

All Coverages:

o Each insurance policy required by this clause shall be endorsed to state that coverage shall not be suspended, voided, canceled, reduced in coverage or in limits except after thirty (30) days prior written notice by certified mail, return receipt requested, has been given to the County.

o Policies shall have concurrent starting and ending dates.

Acceptability of Insurers: Insurance is to be placed with insurers licensed to do business in Georgia and with an A.M. Bests' rating of no less than A: VII.

Verification of Coverage: Contractor shall furnish the County with certificates of insurance and endorsements to the policies evidencing coverage required by this Section prior to the start of work. The certificate of insurance and endorsements shall be on a form utilized by Contractor’s insurer in its normal course of business and shall be received and approved by the County prior to execution of this Agreement by the County. The County reserves the right to require complete, certified copies of all required insurance policies, at any time. The Contractor shall provide proof that any expiring coverage has been renewed or replaced at least two (2) weeks prior to the expiration of the coverage.

Subcontractors: Contractor shall include all subcontractors as insureds under its policies or shall furnish separate certificates and endorsements for each subcontractor. All coverage for subcontractors shall be subject to all of the requirements stated in this Agreement, including but not limited to naming the County and County Parties as additional insureds.

Claims-Made Policies: Contractor shall extend any claims-made insurance policy for at least six (6) years after termination or final payment under the Agreement, whichever is later.

County as Additional Insured and Loss Payee: The County and County Parties shall be named as additional insureds and loss payees on all policies required by this Agreement, except the County need not be named as an additional insured and loss payee on any Professional Liability policy or Workers' Compensation policy.

Effect of Insurance. Compliance with insurance requirements shall not relieve the Builder of any responsibility to indemnify the Owner for any liability to the Owner as specified in any other Provision of this Contract for Construction, and the Owner shall be entitled to pursue any remedy in law or equity if the Builder fails to comply with the contractual Provisions of this Contract for Construction. Indemnity obligations specified elsewhere in this Contract for Construction shall not be negated or reduced by virtue of any insurance carrier's (i) denial of insurance coverage for the occurrence or event which is the subject matter of the claim; or (ii) refusal to defend any named insured.

Waiver of Subrogation. The Builder hereby releases and discharges the Owner and the Owner’s Related Parties of and from all liability to the Builder, and to anyone claiming by, through or under the Builder, by subrogation or otherwise, on account of any loss or damage to tools, machinery, equipment or other property, however caused.