ESBD_383359_1732633475659_Exhibit F Insurance Requirements for CMRs.pdf

Magoffin Home State Historic Site HSD-2024-038 Structural Repairs to the Visitor Center RFP# 808-25-250510

EXHIBIT F

INSURANCE REQUIREMENTS FOR CMRs

NOTE: YOU ARE STRONGLY ENCOURAGED TO IMMEDIATELY DELIVER THIS DOCUMENT

TO YOUR INSURANCE BROKER OR AGENT.

ANY INSURANCE QUESTIONS SHOULD BE DIRECTED IN WRITING TO CHRISTI DUVE,

PURCHASER, VIA EMAIL: Christi.duve@thc.texas.gov

SECTION I

REQUIREMENTS

1.1 Insurance Requirements. All Contractors, including CMRs ((as defined in the Uniform General Conditions for

Construction Contracts in Texas, 2010 edition (UGC), Section 1.13)) who enter into a construction contract (Contract) with the State of Texas, by and through the Texas Historical Commission (THC), must comply with the insurance requirements that are set out in Section 5.2 of the UGC, as it may be amended or modified by any Supplementary General Conditions, any Special Conditions, and/or the Contract.

1.2 Required Insurance Coverages. The required insurance coverages for this particular project are as follows:

1.2.1 Workers’ Compensation and Employers’ Liability Insurance. By execution of a Contract, CMR thereby certifies, pursuant to Texas Labor Code, Section 406.096(a), that CMR provides workers’ compensation and employers’ liability insurance for all employees employed on this public project with limits of not less than: (i) $1,000,000 each accident; (ii) $1,000,000 disease each employee; and (iii) $1,000,000 disease policy limit.

1.2.1.1 Pursuant to Texas Labor Code, Section 406.096(b), CMR shall require each Subcontractor to certify in writing to the CMR that said Subcontractor provides workers’ compensation and employers’ liability insurance for all of Subcontractor’s employees employed on this public project. CMR shall forward said certifications to THC within ten (10) days of the Effective Date of the Contract.

1.2.1.2 The policy must include an Other States Endorsement to include the State of Texas if CMR’s business is domiciled outside the State of Texas.

1.2.2 Commercial General Liability Insurance. Commercial general liability insurance coverage including premises; operations; blanket contractual liability coverage assumed under the Contract and all contracts relative to the Project, including independent contractor’s liability pursuant to unamended ISO (“Insurance Services Offices, Inc.”), or its equivalent; products and completed operations; and extended to include explosion, collapse, and underground hazards, with a combined single limit of $1,000,000 per occurrence, and a general aggregate limit of $2,000,000.

1.2.2.1 The general aggregate limit shall apply on a per Project basis.

1.2.3 Asbestos Abatement Liability Insurance. [If applicable] Asbestos abatement liability coverage including coverage for liability for bodily injury and property damage arising from the encapsulation, removal, handling, storage, transportation, and disposal of asbestos containing materials with a limit of $1,000,000 per accident; $1,000,000 disease per employee; and $1,000,000 disease policy limit, with a combined single limit of at least $2,000,000 per occurrence.

mailto:Christi.duve@thc.texas.gov

1.2.3.1 The policy must be a claims-made policy and the coverage period shall be determined by the following formula: continuous coverage for life of the Contract, plus one (1) year (to provide coverage for the warranty period), with an extended discovery period for a minimum of five (5) years which shall not commence until the expiration of the longest warranty period(s).

1.2.3.2 In the event this Contract provides for only asbestos abatement, neither all-risk builder’s risk nor an all-risk installation floater shall be required.

1.2.3.3 In the event CMR elects to engage a Subcontractor to perform any asbestos abatement, said

Subcontractor must timely obtain and maintain the same asbestos abatement liability coverage as set forth above. In addition thereto:

1.2.3.3.1 said asbestos abatement liability insurance must comply with all requirements set forth in (i) the General Requirements for All Insurance; and (ii) the No Cancellation or Lapse sections below; and

1.2.3.3.2 on or before the Effective Date of the first Guaranteed Maximum Price Amendment, said Subcontractor must deliver to THC, at no expense to THC, a duly executed Proof of Satisfaction of Insurance Requirements (as defined in Subsection

2.1 below) letter and timely deliver, or cause to be delivered, the insurance documentation described therein.

1.2.4 Business Automobile Liability Insurance. Business automobile liability coverage for all owned, non-owned, and hired vehicles with a minimum combined single limit of $1,000,000 per accident for bodily injury and property damage. Alternate acceptable limits are $1,000,000 bodily injury per person, $1,000,000 bodily injury per occurrence, and at least $1,000,000 property damage liability per accident.

1.2.4.1 No aggregate shall be permitted.

1.2.4.2 Such insurance must include coverage for loading and unloading hazards.

1.2.5 All-Risk Builder’s Risk Insurance. All-Risk Builder’s Risk Insurance, or all-risk installation floater for those instances in which the Project involves solely the installation of material and/or equipment.

1.2.5.1 Coverage shall be all-risk, including, but not limited to, fire, extended coverage, vandalism and malicious mischief, theft and, if applicable, flood, earth movement and named storm.

1.2.5.1.1 For those properties located within a Tier 1 or Tier 2 windstorm area, named storm coverage must be provided with the same policy limits as required below.

1.2.5.1.2 For those properties located in flood prone areas, flood insurance coverage must be provided with the same policy limits as required below.

1.2.5.2 Builder’s risk and installation floater limits shall be equal to one hundred percent (100%) of the

Contract Sum.

1.2.5.3 For renovation projects or projects that involve portions of Work contained within an existing structure, the policy must also include coverage in the additional sum of $1,000,000.00 for Existing Property and THC-furnished equipment, if any, specified by THC.

1.2.5.3.1 For purposes herein, “Existing Property” means existing buildings or structures as well as, all personal property contained therein. “Existing Property” does not include personal property owned or operated by CMR or any Subcontractors.

1.2.5.4 For THC furnished equipment or materials that will be in care, custody or control of CMR, CMR shall be responsible for any and all damages and losses thereto.

1.2.5.5 The policy must be written jointly in the names of THC and CMR. Subcontractors must be named as additional insureds.

1.2.5.6 The policy shall have endorsements as follows:

1.2.5.6.1 this insurance shall be specific as to coverage and not contributing insurance with any insurance or self-insurance carried by THC, if any;

1.2.5.6.2 this insurance shall not contain an occupancy clause suspending or reducing coverage should Owner partially occupy the Site and before the parties have determined Substantial Completion; and

1.2.5.6.3 loss, if any, shall be adjusted with and made payable to THC as trustee for the insureds as their interests may appear. THC shall be named as loss payee.

1.2.5.6.4 Valuation of any loss for the renovation and any existing property (exclusive of building and existing structures) shall be at replacement cost.

1.2.5.7 Policy shall remain in effect until Substantial Completion is achieved as to all phases of the

Project.

1.2.6 Umbrella Liability Insurance. Umbrella liability insurance for a period not to expire or terminate prior to the expiration of all warranty periods, insuring CMR for an amount of not less than $1,000,000, which provides coverage at least as broad as, and applies in excess and follows form of, the primary liability coverages required hereinabove. The policy shall provide “drop down” coverage where underlying primary insurance coverage limits are exhausted or otherwise unavailable or inadequate to cover a loss.

1.3 General Requirements for All Insurance. The following provisions shall apply to all insurance requirements:

1.3.1 Deductibles and Self-Insured Retentions. CMR shall be responsible for all deductibles and self-insured retentions, if any, stated in the policies. All deductibles and self-insured retentions shall be disclosed on the certificates of insurance.

1.3.2 Occurrence Policies. Unless specifically provided otherwise herein, all policies must be written on an occurrence basis.

1.3.3 Additional Policy Requirements. In the event the primary insurance policy does not so provide, CMR shall obtain and maintain endorsements for each deficient policy, or provide such other document(s) as may be approved in advance by THC, that satisfy all of the following requirements:

1.3.3.1 naming “Texas Historical Commission, P.O. Box 12276, Austin, Texas 78711, its officials, directors, employees, representatives, and volunteers” as additional insureds, provided however, this requirement does not apply to professional liability insurance or workers’ compensation insurance;

1.3.3.2 the policy, or such other document(s) as may be acceptable to THC, must obligate the insurer, or a third-party acceptable to THC, to notify the Texas Historical Commission, Attn: Christi Duve, P.O. Box 12276, Austin, Texas 78711, of any (i) non-renewal; (ii) cancellation; or (iii) material changes, in writing, as soon as is reasonably

1.3.3.3 possible prior to any such non-renewal, cancellation or change.

1.3.3.3.1 “Material Change” means any of the following changes to the policy during the term of the policy

1.3.3.3.1.1 a change in the policy period;

1.3.3.3.1.2 a material revision to, or removal of, a coverage section;

1.3.3.3.1.3 a reduction of the amount of limits of insurance, provided such reduction is not the result of payment of damages, medical expenses, or claim expenses; or

1.3.3.3.1.4 an increase of the amount of any self-insured retention(s);

1.3.3.4 as to those policies wherein THC is an additional insured, said insurance coverages must be primary and non-contributing with respect to insurance or self-insurance carried by THC, if any;

and

1.3.3.5 the policy must provide for a waiver of subrogation rights to THC for the workers’ compensation, employers’ liability, commercial general liability, and business automobile liability policies.

1.3.4 No Commencement of Work. CMR shall not, nor allow any Subcontractor(s) to, commence the performance of Professional Services under this Contract until the proof of satisfaction of the insurance requirements has been received and approved by THC. However, any approval of the proof of satisfaction of the insurance requirements by THC shall not relieve or decrease the liability of CMR hereunder.

1.3.5 Qualifications of Insurer. Insurance shall be written by a company licensed to do business in the State of Texas at the time the policy is issued and renewed, and shall be written by a company with an A.M. Best rating of A- or better.

1.3.6 No Cancellation or Lapse. CMR shall not cause or permit any required insurance to cancel or lapse prior to the expiration of all warranty periods, provided however, policy duration for builder’s risk insurance (or, as appropriate, installation floater) coverage is not governed by this provision.

1.3.6.1 CMR must update all expired policies prior to submission of any Application for Payment.

1.3.7 Notice of Erosion. CMR shall provide THC with thirty (30) days written notice of erosion of any aggregate limits below the minimum amounts required by the Contract.

1.3.8 Right to Review. THC reserves the right to review the insurance requirements and to require deletion, revision, and/or modification of particular policy terms, conditions, limitations, or exclusions (except where policy provisions are established by law or regulations that are binding upon THC, CMR, or the underwriter) on any such policies when deemed necessary and prudent by THC based upon changes in statutory law, court decisions, or the claims history of the industry and/or of CMR, provided however, such modifications must be commercially available to CMR. THC shall make an equitable adjustment to the Contract Sum for any additional cost resulting therefrom.

1.3.9 Losses Paid by CMR. Actual losses not covered by the required insurance shall be paid by CMR.

1.3.10 Failure to Obtain, Maintain or Renew. Failure to timely obtain, maintain and/or renew the insurance policies as required may, at the sole discretion of THC, subject CMR to, among all other available remedies, at law and in equity, the following:

1.3.10.1 disqualification from eligibility to participate in any other or future projects with THC;

1.3.10.2 suspension of Work for cause;

1.3.10.3 in the event CMR fails to timely renew or pay any of the renewal premiums for any expiring policies, THC shall have the right (but not the obligation) to: (i) make such payments; and/or (ii) acquire replacement coverage, and thereafter set off the amount(s) or costs thereof against the next payment(s) coming due to CMR under the Contract or under any other agreement between THC and CMR; and/or

1.3.10.4 THC may withhold any payments due to CMR from this Project or any other THC project until satisfaction is achieved.

1.3.11 THC a Third-Party Beneficiary. THC shall be a third-party beneficiary of any agreement(s) between CMR and any and all Persons who procure, or cause to be procured, the above-described insurance coverages, and all renewals thereof, for the Project.

1.3.12 Required Insurance Coverages No Effect On Indemnifications. The insurance and insurance limits required herein shall not be deemed as a limitation on CMR’s liability under the indemnifications granted to THC.

1.3.13 No Warranty That Insurance Limits Will Be Adequate to Fully Protect CMR. The insurance requirements set out herein shall not be interpreted as any representation or warranty that the insurance coverage and limits will necessarily be adequate to fully protect CMR.

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