IFB_5000_ALD1022_ATT_2_v1.docx

ATTACHMENT A2 – Insurance (Austin Energy)

1. GENERAL INSURANCE REQUIREMENTS:

A. The Contractor shall provide a Certificate of Insurance as verification of coverages and endorsements required in Section B., Specific Insurance Requirements, to the City prior to Contract execution and within 14 calendar days after written request from the City. Failure to provide the required Certificate of Insurance may subject the Offer to disqualification from consideration for award. The Contractor must also forward a Certificate of Insurance to the City whenever a previously identified policy period has expired, or an extension option or hold over period is exercised, as verification of continuing coverage.

B. All endorsements naming the City as additional insured, waivers, and notices of cancellation shall indicate, and the Certificate of Insurance shall be mailed to the following address:

City of Austin Austin Financial Services - Central Procurement 721 Barton Springs Road Austin, TX 78704

OR

PURInsuranceCompliance@austinTexas.gov C. The Contractor shall not commence work until the required insurance is obtained and until such insurance has been reviewed by the City. Approval of insurance by the City shall not relieve or decrease the liability of the Contractor hereunder and shall not be construed to be a limitation of liability on the part of the Contractor.

D. The City may request that the Contractor submit certificates of insurance to the City for all Subcontractors prior to the Subcontractors commencing work on the project.

E. The Contractor’s and all Subcontractors’ insurance coverage shall be written by companies authorized to do business in the State of Texas and have an A.M. Best rating of B+VII or better.

F. The “other” insurance clause shall not apply to the City where the City is an additional insured shown on any policy. It is intended that policies required in the Contract, covering both the City and the Contractor, shall be considered primary coverage as applicable.

G. If insurance policies are not written for amounts specified in Section B., Specific Insurance Requirements, the Contractor shall carry Umbrella or Excess Liability Insurance for any differences in amounts specified. If Excess Liability Insurance is provided, it shall follow the form of the primary coverage.

H. The City shall be entitled, upon request, at an agreed upon location, and without expense, to review certified copies of policies and endorsements thereto and may make any reasonable requests for deletion or revision or modification of particular policy terms, conditions, limitations, or exclusions except where policy provisions are established by law or regulations binding upon either of the parties hereto or the underwriter on any such policies.

I. The City reserves the right to review the insurance requirements set forth during the effective period of the Contract and to make reasonable adjustments to insurance coverage, limits, and exclusions when deemed necessary and prudent by the City based upon changes in exposure, statutory law, court decisions, the claims history of the industry or financial condition of the insurance company as well as the Contractor.

J. The Contractor shall not cause any insurance to be canceled nor permit any insurance to lapse during the term of the Contract or as required in the Contract.

K. The Contractor shall be responsible for premiums, deductibles and self-insured retentions, if any, stated in policies. Self-insured retentions greater than $499,999 shall be disclosed on the Certificate of Insurance.

L. If any required insurance is written on a claims-made basis, the Certificate of Insurance shall state that the coverage is claims-made and the retroactive date shall be prior to or coincident with the date of the Contract and the coverage continuous and shall be provided for 24 months following the completion of the Contract.

M. The insurance coverages specified in Section B., Specific Insurance Requirements, are required minimums and are not intended to limit the responsibility or liability of the Contractor.

2. SPECIFIC INSURANCE COVERAGE REQUIREMENTS:

The Contractor, consistent with its status as an independent Contractor shall carry and will cause its Subcontractors to carry, at a minimum insurance in the types and amounts indicated below for the duration of the Contract, including extension options and hold over periods, and during any warranty period.

2.1. Worker’s Compensation and Employers’ Liability Insurance:

Coverage shall be consistent with statutory benefits outlined in the Texas Worker’s Compensation Act (Section 401). The minimum policy limits for Employer’s Liability are $1,000,000 bodily injury each accident, $1,000,000 bodily injury by disease policy limit and $1,000,000 bodily injury by disease each employee. The Contractor’s policy shall apply to the State of Texas and include these endorsements in favor of the City of Austin:

A. Waiver of Subrogation, Form WC420304, or equivalent coverage;

B. 30 Days’ Notice of Cancellation, Form WC420601, or equivalent coverage.

2.2. Commercial General Liability Insurance:

Coverage with minimum bodily injury and property damage per occurrence limits of $1,000,000 for coverages A (Bodily Injury and Property Damage) and B (Personal and Advertising Injury).

i. $2,000,000 in the aggregate; and

(1) $2,000,000 aggregate limit for Products-Completed Operations.The policy shall contain the following provisions, with no sublimit or exclusion:

a. Broad-form third party bodily injury, including death;

b. Broad-form property damage, including loss of use;

c. Premises and operations;

d. Contractual liability coverage for liability assumed under the Contract and all other Contracts related to the project;

e. Independent Contractors coverage (Contractor/Subcontracted work);

f. Products/Completed Operations Liability for the duration of the warranty period and applicable through all statutes of limitation and statutes of repose;

g. Defense expenses outside of the policy limits;

h. Liability for Work within 50 feet of a railroad or railroad right of way;

i. Sudden and accidental pollution liability; and

j. Rigger’s liability.

(2) The policy shall also include these endorsements in favor of the City of Austin:

a. Waiver of Subrogation, Endorsement CG 2404, or equivalent coverage;

b. 30 Days’ Notice of Cancellation, Endorsement CG 0205, or equivalent coverage;

c. The City of Austin listed as an additional insured, Endorsement CG 2010, or equivalent coverage.

2.3. Business Automobile Liability Insurance:

Coverage for all owned, non-owned and hired vehicles with a minimum combined single limit of $1,000,000 per occurrence for bodily injury and property damage. The policy shall include these endorsements in favor of the City of Austin:

A. Waiver of Subrogation, Endorsement CA0444, or equivalent coverage;

B. 30 Days’ Notice of Cancellation, Endorsement CA0244, or equivalent coverage;

C. The City of Austin listed as an additional insured, Endorsement CA2048, or equivalent coverage.

2.4. Business Automobile Liability Insurance: Contractor shall provide coverage provided on a follow-form basis, including drop-down coverage with policy limits no less than $1,000,000 per occurrence and in the aggregate. Coverage shall be on an occurrence form and apply in excess of the following underlying policies:

i. Employer’s Liability

ii. Commercial General Liability

iii. Automobile Liability

iv. Other, as applicable

2.5. Property Insurance: The Contractor shall provide All Risk (Special Form) Property coverage including, but not limited to, fire, wind, hail, theft, vandalism, malicious mischief, and equipment/mechanical breakdown for all real and personal property owned by the City and in the care, custody, and control of the Contractor. Property insurance limit will be equal to the value of the City property in Contractor’s care, custody and control, subject to a minimum insurance sufficient to protect the City’s property. If the City owned property is being transported or stored off-site, then the policy will include coverage for transit and storage. The City shall be added to the property policy as a Loss Payee as their interest may appear.

2.6. Environmental Impairment/Pollution Liability Insurance:

A. With a minimum limit of $1,000,000 per claim to pay on behalf of the insured all sums which the insured shall become legally obligated to pay as damages including bodily injury; property damage, cleanup costs; and defense, including costs and expenses incurred in the investigation, defense, or settlement of claims by reason of sudden and accidental or non-sudden and accidental pollution arising out of the transportation, storage, or permanent disposal of hazardous and non-hazardous wastes, including wastes subject to the Toxic Substances Control Act (TSCA).

B. With respect to sudden and accidental occurrences, all Contractors and/or Subcontractors who own or operate a treatment, storage and disposal facility must demonstrate financial responsibility for bodily injury and property damage to third parties and clean-up costs of at least $1,000,000 per occurrence.

C. With respect to non-sudden and accidental occurrences, all Contractors and/or Subcontractors who own or operate a surface impoundment, landfill or land treatment facility that is used to manage hazardous wastes, including wastes subject to the Toxic Substances Control Act (TSCA), must demonstrate financial responsibility for bodily injury and property damage to third parties and clean-up costs of at least $1,000,000 per occurrence. The amounts of coverage must be exclusive of legal defense costs.

D. Policy shall be endorsed to name City of Austin, its Affiliates, and their respective directors, officers, employees, and agents, as additional insureds.

3. ENDORSEMENTS:

The specific insurance coverage endorsements specified above, or their equivalents must be provided. If endorsements, which are the equivalent of the required coverage, are proposed to be substituted for the required coverage, copies of the equivalent endorsements must be provided for the City’s review and approval.

image1.png