Insurance Requirements 2023 (3).docx

INSURANCE REQUIREMENTS: Prior to starting work under the Contract (or as otherwise designated by the Purchasing Activity), the Contractor must provide certificates of insurance required herein and will maintain the insurance for the entire term of the Contract. There are no provisions for exceptions to this requirement. Failure to provide the certificates of insurance within the requisite time period may be cause for termination of the Contract.

The Contractor shall carry liability and property damage insurance that will protect it and the state of Idaho from claims for damages for bodily injury, including accidental death, as well as for claims for property damages, which may arise from operations under the Contract whether such operations be by themselves or by anyone directly or indirectly employed by either of them.

The Contractor shall not commence work under the Contract until it obtains all insurance required under this provision and furnishes a certificate or other form showing proof of current coverage to the state of Idaho. All insurance policies and certificates must be signed copies. After work commences, the Contractor must keep in force all required insurance until the Contract is terminated or expired.

1.1 Commercial General and Umbrella Liability Insurance. The Contractor shall maintain Commercial General Liability (CGL) and, if necessary, Commercial Umbrella insurance with a limit of not less than $1,000,000 each occurrence. If such CGL insurance contains a general aggregate limit, it shall apply separately to the Contract.

1.1.1 CGL insurance shall be written on ISO occurrence form CG 00 01 (or a substitute form providing equivalent coverage) and shall cover liability arising from premises, operations, independent contractors, products-completed operations, personal and advertising injury, and liability assumed under an insured contract (including the tort liability of another assumed in a business contract).

1.2 Commercial Automobile and Commercial Umbrella Liability Insurance. The Contractor shall maintain Commercial Automobile Liability and, if necessary, Commercial Umbrella Liability insurance with a limit of not less than $1,000,000 each accident. Such insurance shall cover liability arising out of any auto (including owned, hired, and non-owned autos).

1.2.1 The Vendor may request a waiver from providing Commercial Automobile and Commercial Umbrella Liability Insurance in its quote if the Vendor will not use any owned, hired or non-owned vehicles to conduct business under the Contract, if it is awarded the Contract, and the state of Idaho will consider the request. If the Vendor submits a request to waive the provision of Commercial Automobile and Commercial Umbrella Liability Insurance after the due date and time for receipt of bids or proposals, the state of Idaho may not consider the request.

1.3 Workers Compensation: Because the Contractor is engaged in its own independent contracting business and is not an employee of the state of Idaho, the state of Idaho will not obtain worker’s compensation insurance for the Contractor or its employees. The Contractor shall obtain worker’s compensation coverage as required by law for itself and employees, and must furnish a copy of its certificate of worker’s compensation insurance to the state of Idaho upon request. Failure to provide proof of insurance may be cause for termination of the Contract.

1.4 State of Idaho as Additional Insured: The liability insurance coverage required for performance of the Contract shall include the state of Idaho, the Idaho Department of Juvenile Corrections (IDJC) and their divisions, officers and employees as additional insured, but only with respect to the Contractor's activities to be performed under the Contract.

1.4.1 The Contractor must provide proof of the state of Idaho, IDJC and their divisions, officers and employees being additional insured by providing endorsements to the liability insurance policies showing the state of Idaho, IDJC and their divisions, officers and employees as additional insured. The endorsements must also show the policy numbers and the policy effective dates.

1.4.2 If a liability insurance policy provides for automatically endorsing additional insured when required by contract, then, in that case, the Contractor must provide proof of the state of Idaho, IDJC and their divisions, officers and employees being additional insured by providing copies of the policy pages that clearly identify the blanket endorsement.

1.5 Notice of Cancellation or Change: The Contractor shall ensure that should any of the above described policies be cancelled before the expiration date thereof, or if there is a material change, potential exhaustion of aggregate limits or intent not to renew insurance coverage(s), that written notice will be delivered to IDJC in accordance with the policy provisions.

1.6 The Contractor shall request that all policies of insurance are endorsed to read that any failure to comply with the reporting provisions of this insurance, except for the potential exhaustion of aggregate limits, shall not affect the coverage(s) provided to the state of Idaho, IDJC and their divisions, officers and employees.

1.7 Acceptable Insurers and Deductibles: Insurance coverage required under the Contract shall be obtained from insurers rated A-VII or better in the latest Bests Rating Guide and in good standing and authorized to transact business in Idaho. The Contractor shall be financially responsible for all deductibles, self-insured retention's and/or self-insurance included hereunder. The coverage provided by such policy will be primary to any coverage of the state of Idaho on or related to the Contract and shall provide that the insurance afforded applies separately to each insured against whom a claim is made, except with respect to the limitation of liability

1.8 Waiver of Subrogation: All policies shall contain waivers of subrogation. The Contractor waives all rights against the state of Idaho, IDJC and their divisions, officers and employees for recovery of damages to the extent these damages are covered by the required policies. Policies may contain deductibles but such deductibles will not be deducted from any damages due to the state of Idaho.