J-2 INSURANCE REQUIREMENTS FOR FRA SUBCONTRACTED WORK AT SURF September 2022.pdf

Insurance Requirements Revision 09/2022 Risk Category 4

INSURANCE REQUIREMENTS FOR FRA SUBCONTRACTED WORK AT SURF

Risk Category 4

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 Sponsors of the South Dakota Science and Technology Authority (SDSTA) (the 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. Subcontractor may satisfy these requirements through a self-insurance program, subject to approval by FRA (which shall not be unreasonably withheld).

LINE OF COVERAGE LIMITS

GENERAL LIABILITY

Commercial General Liability ☒Occurrence

EACH OCCURRENCE $5,000,000

General Aggregate $5,000,000

AUTOMOBILE LIABILITY

Any Auto ☒Occurrence

COMBINED SINGLE LIMIT AND IN THE

AGGREGATE

Covering owned, non-owned, and hired automobiles

$1,000,000

EXCESS LIABILITY

☒Occurrence

For General, Automobile & Employers Liability

EACH OCCURRENCE / AGGREGATE

$1,000,000

PROFESSIONAL LIABILITY/ERRORS

& OMISSIONS

☒ Claims Made and in Aggregate

*Applicable to professional services subcontracts only

Not applicable

WORKER’S COMPENSATION AND

EMPLOYER’S LIABILITY

WCSTATUTORY

LIMITS

OTHER As required by South Dakota law $500,000 $500,000 $500,000

E.L. EACH ACCIDENT

E.L. DISEASE EA EMPLOYEE

E.L. DISEASE-POLICY LIMIT

POLLUTION LIABILITY

EACH OCCURRENCE $1,000,000

Annual Aggregate or greater, depending on the extent of the risk given the nature and scope of work

Not applicable

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:

Attachment J-2

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.

☐ Cargo insurance covering the value of the goods or equipment to be delivered until the goods or equipment is accepted by FRA.

☐ Installation floater/Property Insurance or Performance Bond 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.

☐ Pollution Liability insurance for bodily injury, property damage, cleanup, and defense cost with limits of coverage described above. The policy shall be endorsed to include the South Dakota Science and Technology Authority, its officers, employees, and representatives as insureds.

4. Additional Insureds: Subcontractor’s Commercial General Liability policies shall provide by appropriate language that Fermi Research Alliance, LLC, the University of Chicago, Universities Research Association, Inc., the United States Government, Barrick Gold Corporation (and its affiliates and representatives), Homestake Mining Company of California (and its affiliates and representatives), and the South Dakota Science and Technology Authority, along with each of its officers, agents, employees and representatives are included as additional insureds as required by written contract, provided that coverage available to additional insureds shall be limited to the minimum policy limits required to be maintained by Subcontractor under the terms of this Subcontract, Attachment J-2. All additional insureds coverage must include current and completed operations.

5. 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 herein.

The certificates shall state that waiver of subrogation is granted in favor of the Certificate Holder 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.

6. Notice of Cancellation or Material Change in Coverage/Condition: The subcontractor must provide thirty (30) days’ notice to FRA of any cancellation or material change in the policies. FRA reserves the right to obtain replacement coverage if contractor does not and FRA may deduct the cost of the replacement insurance from the subcontract total.

7. Special Provisions Applicable to All Coverages: Self-insured retentions and/or deductibles greater than $50,000.00 must be declared and approved by FRA.

8. Special Provisions Applicable to the Commercial General Liability Insurance: The commercial general liability policy shall provide contractual liability coverage at least as broad as Insurance Service Office (“ISO”) form CG 00 01 12 07, or its equivalent. 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 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. Before permitting any sub-subcontractor to perform any work, each sub-subcontractor shall furnish satisfactory evidence that it has taken out and maintains insurance in the same amounts as determined and acceptable to FRA and the Subcontractor.

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.