ESBD_563743_1790689788680_582-27-15466 Standard Insurance Amounts.pdf

INSURANCE SECTION

1. GENERAL. Contractor shall purchase and maintain sufficient insurance as appropriate for the Work being performed and furnished, and for protection from any and all claims that may arise out of or result from Contractor’s performance and furnishing of the Work and Contractor’s other obligations under the Contract Documents. Contractor’s insurance shall meet or exceed the requirements set forth in this section or elsewhere in the Contract Documents.

2. COVERAGES REQUIRED. Contractor shall obtain and maintain throughout the Contract term the minimum insurance coverages listed below:

2.1 Worker’s Compensation Insurance: Coverage to secure the payment of compensation to injured employees as defined in the Texas Worker’s Compensation Act.

2.2 Commercial General Liability Insurance: Coverage for claims of personal injury and bodily injury, including accidental death, and property damage which may arise from the performance of the contract. The types of coverage required are: Blanket, Broad Form Property Damage, Premises and Operations Hazards, Products and Completed Operations Hazards, Independent Contractor’s, and Contractual Liability (including covering all of the Contractor’s indemnity obligations under this Contract).in the minimum amounts of:

• $500,000 per occurrence for bodily injury; and

• $1,000,000 per occurrence for property damage; or

• $2,000,000 per occurrence if the policy is issued for bodily injury and property damage combined.

2.3 Requirements for Subcontractors: All requirements listed in items 2.1-2.2 will also apply to subcontractors.

3. INSURER REQUIREMENTS. The Contractor will obtain all required policies from insurers licensed, eligible, or registered under Texas law to issue insurance policies for the limits and coverage required and the insurers must have a rating of A- or better and a financial size capacity of IV or better according to the most recent A.M.

Best Ratings Guide.

4. NOTICES OF CHANGE. The Contractor’s insurance policies must require the insurer or the insurer’s authorized agent to notify TCEQ of any cancellation, or material change, other than for non-payment, at least 30 days in advance. The Contractor’s insurance policy must require the insurer or the insurer’s authorized agent to notify TCEQ of any cancellation or material change due to non-payment at least 10 days in advance. These notices of changes must reference the TCEQ contract number and be made in writing by email to the TCEQ Contract Manager at the address shown in the current NOTICES, PROJECT REPRESENTATIVES, AND RECORDS LOCATION form. This provision does not relieve Contractor of its own requirements to notify TCEQ of any changes during the period of the Contract Term.

5. INSURANCE CERTIFICATE. Contractor shall provide TCEQ with evidence of the insurance coverage required under this Contract. The evidence of the coverage shall be a certificate of insurance on a form approved by the Texas Department of Insurance. Contractor will submit the certificate to the TCEQ Contract Manager no later than ten days after award of the Contract, or as directed by the Special Terms and Conditions. Prior to the expiration of any insurance coverages during the term of the Contract, Contractor will submit a certificate evidencing renewed or new insurance policies. Certificates must bear the contract number of this Contract. If Contractor changes insurers, Contractor shall provide the TCEQ Contract Manager with a new certificate of insurance within ten days. The certificate of insurance shall set out any deductible or self-insured retention amounts for each coverage required.

TCEQ’s approval, disapproval, or failure to act regarding any insurance required to be supplied by the Contractor will not relieve the Contractor of full responsibility for liability for damages, injury, death, or loss as set forth herein or otherwise provided by law or regulations.

6. REQUIRED ADDITIONAL PROVISIONS. All policies of insurance shall include the following provisions:

5.1 TCEQ and its officers and employees are named additional insureds to the Commercial General Liability Insurance, Excess Liability Insurance (Umbrella), and Excess Liability Insurance (Other than Umbrella), including for completed operations, except for the Professional Liability Insurance;

5.2 Waiver of subrogation in favor of TCEQ, its officers and employees for bodily injury (including death), property damage, or any other loss arising from this Contract, except for the Professional Liability Insurance; and

5.3 The Contractor’s insurance is primary insurance with respect to the TCEQ and its officers and employees.

7. SELF-INSURANCE AND DEDUCTIBLES. Contractor must obtain TCEQ’s prior written approval to self-insure or to maintain the required insurance subject to deductibles and/or retentions that exceed Fifty Thousand Dollars ($50,000).

Policies required under this Article or elsewhere in the Contract Documents must not include provisions to the effect that payment of claims up to the limits of the policy are conditioned on the actual payment of a deductible or Self-Insured Retention (SIR) by Contractor.

As a condition of granting approval to retain deductibles or SIRs above Fifty Thousand Dollars ($50,000) TCEQ may require additional financial assurance in the form of an irrevocable letter of credit, the establishment of an escrow account, or other financial instrument acceptable to TCEQ.

INSURANCE SECTION