J-2 INSURANCE REQUIREMENTS FOR FRA SUBCONTRACTED WORK AT SURF Risk category 3 (Rev 8.2024).pdf

Insurance Requirements – Work at SURF Revision 08/2024 Risk Category 3

INSURANCE REQUIREMENTS FOR FRA SUBCONTRACTED WORK AT SURF

1. Insurance: This clause applies to work performed at the Sanford Underground Research Facility

(SURF) worksite and incorporates the insurance requirements of Fermi Research Alliance, LLC (the contracting entity), as well as the Risk Transfer Protocols (attached) for Contractors and Project Sponsors of the South Dakota Science and Technology Authority (SDSTA) (site operator).

2. Minimum Insurance Coverage: Before undertaking any work under this Subcontract, the

Subcontractor shall, except as otherwise approved by FRA, take out and maintain at its own cost and expense, insurance coverages, in at least the amounts listed below, through insurers with an A.M. Best rating of A, VII or higher.

LINE OF COVERAGE LIMITS

GENERAL LIABILITY

Commercial General Liability

☒Occurrence ☒Project

EACH OCCURRENCE $1,000,000

GENERAL AGGREGATE

Products - Completed Operations Aggregate to be maintained for at least 10 years after final completion

Coverage will be at least as broad as ISO form CG 00 01

$2,000,000

$2,000,000

AUTOMOBILE LIABILITY

Any Auto

☒Occurrence

COMBINED SINGLE LIMIT AND IN THE

AGGREGATE

Covering owned, non-owned, and hired automobiles with coverage at least as broad as ISO Business Auto Form CA 00 01

$1,000,000

EXCESS LIABILITY

☒Occurrence

For All Liability Coverages Required following the form of underlying insurance

EACH OCCURRENCE / AGGREGATE

(Limits may be met through a combination of underlying and excess policies)

$4,000,000

WORKER’S COMPENSATION AND

EMPLOYER’S LIABILITY

WC STATUTORY

LIMITS

OTHER As required by South Dakota law

$1,000,000

$1,000,000

E.L. EACH ACCIDENT

E.L. DISEASE EA EMPLOYEE

E.L. DISEASE-POLICY LIMIT

CONTRACTOR’S POLLUTION

LIABILITY

Required for construction contracts of $50,000 or more and for equipment procurement or installation when the installation or testing of the equipment involves the use of asphyxiants (including otherwise benign gases or vapors which displace breathable air) or the use of hazardous or other materials excluded from coverage under a commercial general liability policy

EACH OCCURRENCE OR PER CLAIM

ANNUAL AGGREGATE

If policy is claims-made, the retroactive date or prior acts exclusion shall pre-date the date of the Subcontract and the date services are first provided.

Coverage shall be maintained for a minimum of 5 years after project completion or, if cancelled, maintain an extended reporting period for 5 years after last work is performed.

$10,000,000

$10,000,000

CONTRACTOR’S PROFESSIONAL

LIABILITY

☒ Claims Made and in Aggregate

*Required for construction subcontracts that have design/build, delegated design, construction management services requirements.

EACH OCCURRENCE OR PER CLAIM

AND ANNUAL AGGREGATE

The retroactive date or prior acts exclusion shall pre-date the date of the Subcontract and the date services are first provided.

Coverage shall be maintained for a minimum of 5 years after project completion or, if cancelled, maintain an extended reporting period for 5 years after last work is performed.

$1,000,000

PROFESSIONAL

LIABILITY/ERRORS & OMISSIONS

☒ Claims Made and in Aggregate

Required for subcontracts that have professional services requirements.

PER CLAIM AND ANNUAL AGGREGATE

For Subcontracts for less than $3.5M

For Subcontracts greater than $3.5M

The retroactive date or prior acts exclusion shall pre-date the date of the Subcontract and the date services are first provided.

Coverage shall be maintained for a minimum of 5 years after project completion or, if cancelled, maintain an extended reporting period for 5 years after project last work performed.

$5,000,000

3. Supplemental Coverages: The following coverages checked below are required:

☐ Aircraft Liability Insurance with limits not less than $1,000,000 per occurrence

☐ All Builder’s Risk, Special Form insurance or its equivalent, at replacement cost for materials, supplies, equipment, machinery and fixtures that are, or will become, part of FRA. DOE, or South

Dakota Science and Technology Authority-owned property. Such insurance shall:

1. Remain in effect until completion of the project and acceptance by FRA.

2. Include coverage for earthquake, flood, ordinance or law, temporary offsite storage, debris removal, pollutant cleanup and removal, preservation of property, excavation costs, landscaping, shrubs and plants, and full collapse coverage during construction.

3. Waive rights of subrogation against the Additional Insureds identified in paragraph 4.

☐ Broad Form cargo insurance to cover damage to or loss of cargo in the amount of

$__________ per occurrence, Subcontractor will be transporting property owned by the U.S.

Government, Department of Energy, and may be transporting property belonging to other entities contributing to Fermilab-hosted projects and experiments. The property owner shall be named as a loss payee, and the insurer shall waive rights of subrogation against FRA and the property owner. The required insurance shall cover the entire geographic scope in which the

Subcontractor will operate under this Agreement.

☐ Installation floater covering the value of the equipment to be installed. Such insurance shall include:

1. FRA as additional insured.

2. Coverage for testing, water damage, mechanical breakdown and electrical injury.

3. Waive rights of subrogation against the Additional Insureds identified in paragraph 4.

4. Commercial General Liability Insurance; Exclusion/Terms Not Allowed:

a. Exclusion for claims by one insured against another insured if the exclusion is based on the fact that the other claimant is an insured and there would otherwise be coverage for the claim;

b. Exclusion for claims for property damage included within the Products-Completed Operations

Hazard where the completed work or the work out of which the damage arises are performed by a subcontractor;

c. Exclusion for claims against any Additional Insured for bodily injury, including claims made by employees of the Subcontractor or sub-subcontractor(s);

d. Exclusion for claims for indemnity arising out of injury to employee(s) of the Subcontractor or sub-subcontractor(s);

e. Exclusion for claims related to earth subsidence or movement (where the work involves such hazards);

f. Exclusion for claims related to explosion, collapse or underground hazards (where the work involves such hazards); or

g. Provision that erodes limits of insurer by insurer’s payment of defense costs;

h. Provision allowing insurer to obtain reimbursement of defense costs.

5. Additional Insureds: Subcontractor’s liability policies (excluding Worker’s

Compensation/Employer’s Liability and Professional Liability but including Pollution Liability, if required) shall provide by appropriate language that the following are included as additional insureds as required by written contract, that the insurance afforded by such policies to the Additional Insureds is primary insurance, and that all rights of the insurer for contribution from other insurers are waived:

• Fermi Research Alliance, LLC, and its officers, agents, employees

• the University of Chicago, and its officers, agents, employees

• Universities Research Association, Inc., and its officers, agents, employees

• the United States Government, and its officers, agents, employees

• the South Dakota Science and Technology Authority, and its officers, agents, employees

• Barrick Gold Corporation and its affiliates, and each of their officers, directors, employees, and agents, and any visitor, contractor or consultant that they invite unto, allow or authorize to use

SURF

• Homestake Mining Company of California, and its affiliates, and each of their officers, directors, employees, and agents, and any visitor, contractor or consultant that they invite unto, allow or authorize to use SURF.

For construction Subcontracts with a price greater than $3.5 million, additional insured coverage will be at least as broad as the coverage provided by ISO forms CG 2010 10 01 and GC 2037 10 01.

All of Subcontractor’s policies, including Worker’s Compensation, shall include a waiver of subrogation in favor of the Additional Insureds. All additional insureds coverage must include current and completed operations.

Subcontractor shall hold the Additional Insureds harmless against liability for damage to Subcontractor’s property. Subcontractor’s property policies, including but not limited to equipment, cargo and in-transit coverages, whether or not such policies are required by the Subcontract, shall include a waiver of subrogation in favor of the Additional Insureds.

6. Evidence of Insurance: The Subcontractor agrees to deliver to FRA within ten (10) days of the signing and delivery of this Subcontract, certificates evidencing compliance with the insurance requirements herein. Subcontractor shall provide a certificate identifying an Additional Insured as a certificate holder upon request from FRA. The certificates shall state that waiver of subrogation is granted in favor of the additional insureds as required by written contract and that the insurance afforded by such policies is primary insurance, and that all rights of the insurer for contribution are waived. The Subcontractor must provide complete, certified copies of all required insurance policies if requested by FRA or SDSTA. Receipt or review by FRA or FRA’s representatives of any evidence of insurance coverage, failure to request such evidence of insurance coverage or failure to object to any evidence of insurance coverage that does not comply with these requirements, shall not be deemed a waiver of such requirements and shall not relieve Subcontractor of any obligation to comply with these insurance requirements.

7. Notice of Cancellation or Material Change in Coverage/Condition: Coverage will not be suspended, voided, cancelled, or reduced in limits except after thirty (30) days’ prior written notice, except that ten

(10) days’ prior written notice shall be required in the event of cancellation for nonpayment of premium.

FRA reserves the right to obtain replacement coverage if contractor does not and FRA may deduct the cost of the replacement insurance from the amounts payable to the Subcontractor.

8. Special Provisions Applicable to All Coverages: Self-insurance and self-insured retentions and/or deductibles must be declared and approved by FRA. Insurance policies must include a provision that the insurer will not raise any coverage defense based on the statutory immunity of the State of South Dakota, the South Dakota Science and Technology Authority, or the Homestake Indemnified Parties.

9. Sub-Subcontractor Insurance Requirements: Insurance requirements, including Additional Insured requirements, shall apply to all sub-subcontractors, consultants and others doing work in connection of this subcontract. The insurance requirements applicable will be determined on a per sub-subcontractor basis, taking into account the appropriate category of risk, the particular work to be done by the sub-subcontractor or others doing work under the subcontract, and the interrelationship of that work together with other work being conducted by the Subcontractor. In no event may the limits required of a sub-subcontractor doing work on the Surface Property only be less than $1,000,000.00 per occurrence and

$2,000,000.00 aggregate, nor may the limits required of a sub-subcontractor doing any work in the

Underground Property be less than $5,000,000.00 per occurrence and $5,000,000.00 aggregate. The

Subcontractor shall certify to SDSTA that it has required its sub-subcontractors to maintain appropriate limits of liability. Before permitting any sub-subcontractor to perform any work, each sub-subcontractor shall furnish satisfactory evidence that it maintains insurance appropriate for the particular work to be done by the sub-subcontractor and shall require the sub-subcontractor(s) to provide certificates of insurance to FRA and SDSTA. Upon request, Subcontractor and sub-subcontractor(s) shall provide a certificate of insurance identifying an Additional Insured as a certificate holder.

10. Indemnification: The Subcontractor shall indemnify FRA for any expense incurred or loss suffered by

FRA for the failure of the Subcontractor to comply with the insurance requirements for this Subcontract.