Exhibit F Insurance Requirements.docx

EXHIBIT “F”

Insurance Requirements

(1) Requirements: The Design-Builder 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 Design-Builder, its agents, representatives, employees or subcontractors. All policies shall be subject to approval by SCWSFA (“Authority” or “Owner”) as to form and content. These requirements are subject to amendment or waiver if so approved in writing by the General Manager of the Authority.

(2) Minimum Limits of Insurance: Design-Builder, for all operations, shall maintain the following insurance policies with coverage and limits no less than:

(a) Commercial General Liability:

(i) Limits of Liability $1,000,000 Bodily Injury/Property Damage Each Occurrence $2,000,000 Products/Completed Operations Aggregate $2,000,000 General Aggregate $50,000 Fire Damage $5,000 Medical Payments

(ii) Coverage and Terms shall include the following:

Occurrence Basis;

Premises Operations;

Contractual Liability;

Products/Completed Operations;

Broad Form Property Damage;

Independent Contractors Liability;

Personal injury liability; and Per project general aggregate endorsement.

(b) Commercial Automobile Liability: Commercial Automobile Liability Insurance to cover all vehicles owned by, hired by, or used on behalf of the Design-Builder / Subcontractor / Sub subcontractor with limits no less than $1,000,000 Combined Single Limit Per Accident. If Design-Builder or its Subcontractors haul hazardous waste, they must carry automobile liability insurance with $1,000,000 combined single limit each occurrence for bodily injury and property damage applicable to all hazardous waste hauling vehicles accompanied by Motor Carrier Endorsement MCS 90 and Pollution Liability – Broadened Covered for Covered Autos CA9948 or its equivalent.

(c) Professional Liability: Design-Builder shall obtain and maintain (or require its Subcontractors responsible for performing such design and/or design-assist services to obtain and maintain), at its sole cost and expense and at all times during the term of the Agreement, Professional Liability (errors and omissions) insurance for all professional services provided. This Professional Liability insurance shall include full prior acts coverage sufficient to cover the services under the Agreement, the limits of which shall be not less than Five Million Dollars ($5,000,000) Per Claim / Aggregate, for Design-Builder, and for Subcontractors One Million Dollars ($1,000,000) Per Claim / Aggregate, written on a claims-made basis with a deductible or self-insured retention amount not greater than One Hundred Thousand Dollars ($100,000), including, without limitation, coverage of contractual liability. These limits may be increased at the Design-Builder’s sole discretion or if required in project specifications or manual. Professional Liability insurance is to be maintained during the term of the Agreement and for so long as the insurance is reasonably available as provided herein, for a period of ten (10) years after completion of the services.

(d) Workers’ Compensation and Employers’ Liability: Workers’ compensation in accordance with statutory law. A waiver of subrogation endorsement is required. Employer's Liability insurance shall be provided in amounts not less than:

$1,000,000 bodily injury for each accident;

$1,000,000 policy limit for bodily injury by disease; and $1,000,000 each employee for bodily injury by disease.

(e) Builder’s Risk Insurance: Design-Builder shall provide a Builder’s Risk Insurance Policy to be made payable to the Authority and Design-Builder, as their interests may appear. The policy amount shall be equal to 100% of the Guaranteed Maximum 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 Authority; and iii) Performance of Work in connection with construction operations insured by the Authority, by its agents or lessees, or other contractors of the Authority or using agency.” The insurance coverage shall include extended coverage, and providing coverage for transit, with sub-limits sufficient to insure the full replacement value of the property or equipment removed from its site and while located away from its site until the date of final acceptance of the Work.

(f) Excess Liability/Commercial Umbrella Liability:

(i) Limits of Liability – Design-Builder and Subcontractors:

$20,000,000 Each Occurrence and General Aggregate

Coverage should apply and follow form over primary coverages shown above. Limits must apply per any one occurrence and general aggregate annually.

(ii) Coverages and Terms shall include the following:

Excess of General Liability Excess of Employer's Liability Excess of Products / Completed Operations

(g) Tools and Equipment Floater Insurance:

Whatever fire and extended coverage Design-Builder may deem necessary for protection against loss of owned, rented, or borrowed capital equipment and tools, including, but not limited to, any tools owned by mechanics, and any tools, equipment, scaffolding, staging, trailers, cranes, towers and forms owned, rented, or borrowed by it or its Subcontractors. Owner shall have no liability with respect to such equipment and tools. Failure of the Design-Builder or any Subcontractor to secure such insurance or to maintain adequate levels of coverage shall not obligate Owner or its agents and employees for any losses on owned, rented, or borrowed equipment.

If higher limits are maintained by Design-Builder than shown above, the Owner shall be entitled to coverage for any additional insurance proceeds in excess of the specified minimum limits maintained by the Design-Builder.

(3) Deductibles and Self-Insured Retentions: Any deductibles or self-insured retentions must be declared to and approved by the Authority in writing so that the Authority may ensure the financial solvency of the Design-Builder; self-insured retentions should be included on the certificate of insurance.

(4) Other Insurance Provisions: Each policy shall contain, or be endorsed to contain, the following provisions respectively:

(a) General Liability, Automobile Liability and Umbrella Liability Coverage.

(i) Additional Insured Requirement. The SCWSFA and any elected and appointed officials, officers, boards, commissioners, employees, representatives, consultants, servants, agents and volunteers (individually “Insured Party” and collectively “Insured Parties”) shall be named as additional insureds as respects: liability arising out of activities performed by or on behalf of the Design-Builder; products and completed operations of the Design-Builder; premises owned, leased, or used by the Design-Builder; automobiles owned, leased, hired, or borrowed by the Design-Builder. The coverage shall contain no special limitations on the scope of protection afforded to the Insured Parties. Nothing contained in this section shall be construed to require the Design-Builder to provide liability insurance coverage to any Insured Party for claims asserted against such Insured Party for its sole negligence.

(ii) Primary Insurance Requirement. The Design-Builder’s insurance coverage shall be primary noncontributing insurance as respects to any other insurance or self-insurance available to the Insured Parties. Any insurance or self-insurance maintained by the Insured Parties shall be in excess of the Design-Builder’s insurance and shall not contribute with it.

(iii) Reporting Requirement. Any failure to comply with reporting provisions of the policies shall not affect coverage provided to the Insured Parties.

(iv) Separate Coverage. Coverage shall state that the Design-Builder’s insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to limits of insurance provided.

(v) Defense Costs/Cross Liability. 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.

(vi) Subrogation. The insurer shall agree to waive all rights of subrogation against the Insured Parties for losses arising from Work performed by the Design-Builder for SCWSFA.

(b) Workers’ Compensation Coverage: The insurer providing Workers’ Compensation Coverage will agree to waive all rights of subrogation against the Insured Parties for losses arising from Work performed by the Design-Builder for the Authority.

(c) All Coverages:

(i) Notice Requirement. Each insurance policy required by this Agreement shall be endorsed to state that coverage shall not be reduced, suspended, voided, or canceled except after thirty (30) calendar days prior written notice (or 10 calendar days if due to non-payment) has been given to SCWSFA. In addition, Design-Builder shall provide written notice to Authority at least thirty (30) days prior to any reduction, suspension, voiding, or cancellation of coverage. The Authority reserves the right to accept alternate notice terms and provisions, provided they meet the minimum requirements under Georgia law.

(ii) Starting and Ending Dates. Policies shall have concurrent starting and ending dates.

(iii) Incorporation of Indemnification Obligations. Policies shall include a Project-specific endorsement incorporating the indemnification obligations assumed by the Design-Builder under the terms of the Agreement, including but not limited to Article 7.4 of the General Conditions.

(5) Acceptability of Insurers: The insurance to be maintained by Design-Builder must be issued by a company licensed or approved by the Insurance Commissioner to transact business in the State of Georgia. Such insurance shall be placed with insurer(s) with an A.M. Best Policyholder’s rating of no less than “A-” and with a financial rate of Class VII or greater. The Design-Builder shall be responsible for any delay resulting from the failure of its insurer to provide proof of coverage in the proscribed form.

(6) Verification of Coverage: Design-Builder shall furnish to the Authority for Authority approval certificates of insurance and endorsements to the policies evidencing all coverage required by the Agreement prior to the start of work. Without limiting the general scope of this requirement, Design-Builder is specifically required to provide an endorsement naming the Authority as an additional insured when required. The certificates of insurance and endorsements for each insurance policy are to be on a form utilized by Design-Builder’s insurer in its normal course of business and are to be signed by a person authorized by that insurer to bind coverage on its behalf, unless alternate sufficient evidence of their validity and incorporation into the policy is provided. The Authority reserves the right to require complete, certified copies of all required insurance policies at any time. The Design-Builder shall provide proof that any expiring coverage has been renewed or replaced prior to the expiration of the coverage.

(7) Subcontractors: Design-Builder shall either (1) ensure that its insurance policies (as described herein) cover all subcontractors and the Work performed by such subcontractors or (2) ensure that any subcontractor secures separate policies covering that subcontractor and its Work. All coverage for subcontractors shall be subject to all of the requirements stated in this Agreement, including, but not limited to, naming the Insured Parties as additional insureds.

(8) Claims-Made Policies: Design-Builder shall extend any claims-made insurance policy for at least six (6) years after termination or final payment under the Agreement, whichever is later, and have an effective date which is on or prior to the Effective Date.

(9) Progress Payments: The making of progress payments to the Design-Builder shall not be construed as relieving the Design-Builder or its subcontractor or insurance carriers from providing the coverage required in the Agreement.