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CONCHO VALLEY COUNCIL OF GOVERNMENTS

INSURANCE REQUIREMENTS ADDENDUM

This Insurance Requirements Addendum establishes the minimum insurance requirements applicable to contracts and purchases made by the Concho Valley Council of Governments (“CVCOG”). These requirements are intended to provide reasonable protection for CVCOG, its programs, employees, property, and operations while recognizing that insurance requirements may vary based on the nature and risk of the services being procured.

The insurance requirements stated in this Addendum are minimum requirements. CVCOG may establish additional or higher insurance requirements in the solicitation, Scope of Work, contract, or other procurement documents when warranted by the nature of the work, anticipated risks, funding requirements, or applicable law. If requirements in the solicitation or resulting contract are more specific or more stringent than those contained in this Addendum, the more specific or stringent requirements shall apply.

1. General Insurance Requirements.

The Contractor shall, at its own expense, maintain insurance coverage appropriate to the services being provided and sufficient to meet the requirements of this Addendum throughout the term of the contract.

Insurance shall be issued by an insurance company authorized to conduct business in the State of Texas and having a financial strength rating of A- or better by A.M. Best, unless otherwise approved in writing by CVCOG. Coverage shall be maintained without interruption during the entire contract term and any additional period during which the Contractor remains responsible for its work.

The Contractor shall be responsible for all deductibles, self-insured retentions, and other amounts not covered by insurance. The Contractor's insurance shall not be construed as limiting the Contractor's liability or obligations under the contract. Minimum insurance requirements do not establish a limit on the Contractor's liability to CVCOG.

2. Minimum Required Coverage.

Unless otherwise stated in the solicitation or contract, the Contractor shall maintain the following minimum insurance coverage, as applicable to the services being performed:

A. Commercial General Liability

Commercial General Liability insurance with limits of not less than:

• $1,000,000 each occurrence;

• $2,000,000 general aggregate; and

• $2,000,000 products and completed operations aggregate, when applicable.

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Coverage shall include, as applicable to the Contractor's operations, bodily injury, property damage, personal and advertising injury, premises and operations, contractual liability, and products and completed operations.

B. Automobile Liability For contracts involving the use of motor vehicles in connection with the services, Automobile Liability insurance with a combined single limit of not less than $1,000,000 per accident for bodily injury and property damage. Coverage shall apply to owned, hired, and non-owned vehicles, as applicable to the Contractor's operations.

C. Workers’ Compensation and Employer’s Liability Workers' Compensation insurance shall be maintained as required by applicable law.

When the Contractor is subject to statutory Workers' Compensation requirements, Employer's Liability coverage shall be maintained with limits of not less than:

• $500,000 each accident;

• $500,000 disease – each employee; and

• $500,000 disease – policy limit.

The Contractor shall comply with applicable Texas requirements concerning Workers' Compensation coverage and shall be responsible for ensuring that its employees and subcontractors are appropriately covered.

D. Professional Liability / Errors and Omissions For contracts involving professional, consulting, design, engineering, architectural, accounting, legal, technology, or other services where errors or omissions could result in financial loss or other professional liability, Professional Liability or Errors and Omissions insurance shall be maintained with limits of not less than $1,000,000 per claim and $1,000,000 aggregate, unless otherwise specified in the solicitation.

E. Cyber Liability For contracts involving the Contractor's access to CVCOG information systems, confidential information, personally identifiable information, protected information, or the storage, processing, or transmission of sensitive information on behalf of CVCOG, Cyber Liability insurance may be required.

When required, the minimum limit shall generally be $1,000,000 per claim and $1,000,000 aggregate, unless a different amount is specified in the solicitation or contract.

Coverage should address, as applicable to the Contractor's services, data breaches, privacy liability, network security liability, notification and response expenses, and cyber-related business interruption.

3. Additional Insured.

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When required by the solicitation or contract, CVCOG shall be named as an additional insured on the Contractor's Commercial General Liability and Automobile Liability policies, as applicable.

The additional insured status shall apply to liability arising out of the Contractor's operations performed under the contract and shall be provided on an ongoing and completed operations basis when commercially available and applicable to the services.

Additional insured status shall not be required for Workers' Compensation or Professional Liability policies.

4. Primary and Non-Contributory Coverage.

When CVCOG is required to be named as an additional insured, the Contractor's applicable liability insurance shall be primary and non-contributory with respect to liability arising from the Contractor's operations under the contract, to the extent commercially available and permitted by the applicable policy.

5. Waiver of Subrogation.

When required by the solicitation or contract, the Contractor shall provide a waiver of subrogation in favor of CVCOG for Workers' Compensation and other applicable insurance policies, to the extent commercially available.

6. Subcontractors.

The Contractor shall require its subcontractors to maintain insurance appropriate to the subcontracted work and sufficient to protect the Contractor and CVCOG from risks associated with the subcontractor's operations.

Upon request, the Contractor shall provide evidence of insurance coverage for its subcontractors.

CVCOG may require specific subcontractors to meet the same insurance requirements applicable to the Contractor when the nature of the subcontracted work warrants such requirements.

7. Evidence of Insurance.

Prior to commencement of services, the Contractor shall provide a current Certificate of Insurance (“COI”) evidencing the required coverage. CVCOG may also request applicable endorsements or other documentation reasonably necessary to verify required coverage.

Certificates of Insurance shall identify the Contractor, applicable policy numbers and effective dates, insurance companies, coverage limits, and the types of coverage maintained.

If CVCOG is required to be named as an additional insured, the Contractor shall provide evidence of such status through the applicable endorsement or other documentation acceptable to CVCOG.

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The Contractor shall not commence work requiring insurance coverage until the required evidence of insurance has been provided and accepted by CVCOG.

8. Continuation of Coverage.

The Contractor shall maintain the required insurance throughout the contract term. If a required policy is canceled, non-renewed, materially changed, or otherwise ceases to provide the required coverage, the Contractor shall promptly notify CVCOG and obtain replacement coverage without interruption.

Upon request, the Contractor shall provide updated Certificates of Insurance demonstrating continued coverage.

9. Failure to Maintain Insurance.

Failure to maintain required insurance shall constitute a material breach of the contract and may result in suspension of work, withholding of payments, termination of the contract, or other remedies available to CVCOG under the contract or applicable law.

10. Solicitation-Specific Requirements.

CVCOG reserves the right to establish insurance requirements specific to a particular procurement based on the nature, scope, location, duration, and risk of the anticipated services.

Solicitations may require higher limits, additional types of coverage, specific endorsements, or other insurance requirements when appropriate. Any such requirements will be identified in the solicitation or contract.

Prospective respondents should carefully review the solicitation for any insurance requirements that exceed the minimum requirements contained in this Addendum.

11. No Limitation of Liability.

The insurance requirements contained in this Addendum are intended to establish minimum coverage requirements and shall not be interpreted as establishing a limitation on the Contractor's liability, responsibility, or obligations under the contract.

Nothing in this Addendum shall be construed to require CVCOG to maintain insurance on behalf of the Contractor or to waive any rights or remedies available to CVCOG under the contract or applicable law.