RFP 88-26 - Attachment B - MBTA Minimum Insurance Requirements.pdf

Attachment B - MBTA Minimum Insurance Requirements

The Contractor shall not commence work under the Contract until it has obtained all insurance required under this Section and such insurance has been approved by MBTA. The MBTA shall be supplied with signed certificates of such insurance ten (10) business days prior to the commencement of any work under the Contract evidencing that such insurance policies, including required limits and sub limits are in place and provide coverage as required. Any deductible shall be the responsibility of the Contractor or

Subcontractor.

a. Worker's Compensation Insurance including Worker's Compensation Insurance and

Employers Liability Insurance as required by and in accordance with the laws of the

Commonwealth of Massachusetts.

b. General Liability Insurance including Contractual Liability Insurance with a limit of not less than $1 million per occurrence and $2 million aggregate.

c. Automobile Liability Insurance for bodily injury and property damage with a combined single limit of not less than $1 million for the use of all vehicles; owned, leased, hired, and non-owned for all work performed under this contract. Coverage requirement includes comprehensive coverage, fire, theft, glass, and physical damage/collision coverage on all

MBTA owned/leased vehicles. Insurance must sufficiently cover the true full cost to replace any vehicle no longer fit for service.

d. Property Insurance for any MBTA owned/leased equipment or property associated with the

Contract. Insurance coverage (including vehicle storage) shall be for replacement cost including theft. The MBTA shall be named loss payee as their interest may appear.

e. Umbrella Liability Insurance with limits not less than $25 million per occurrence and annual aggregate, covering all work and services performed under the Contract. Such insurance shall be written on an occurrence basis.

f. Employment Practice Liability should be written on a claims made basis with a limit of no less than $1 million. Coverages to be included are Third Party Violations including but not limited to any actual or alleged harassment or unlawful discrimination of violation of civil rights of an individual committed against any individual other than an individual insured or applicant for employment with the Contractor, including, but not limited to students, patients, members, customers, vendors and suppliers.

g. Abuse and Molestation Liability Insurance written on an occurrence basis with a limit of not less than $1 million per occurrence and $2 million aggregate.

The insurance herein before specified shall be with insurance companies licensed and/or authorized by the

Massachusetts Division of Insurance to do business in the Commonwealth of Massachusetts and having a

Best's rating of A- or better.

The insurance shall be taken out before work is commenced and kept in effect until all work required to be performed under the terms of the Contract is satisfactorily completed. The MBTA shall be given a minimum of thirty (30) days’ notice in the event of cancellation and ten (10) days’ notice for non-payment of any of the insurance required under this paragraph. Notice shall be delivered in accordance with the policy provisions.

The MBTA shall be listed as an "additional insured" on all Policies. The Workers' Compensation and

Employers' Liability Insurance Policies shall include a waiver of any and all subrogation rights against the

MBTA. All such insurance required above shall be primary and non-contributory to any insurance or self-insurance maintained by the MBTA.

At the request of the MBTA, the Contractor shall have its insurance company mail a complete copy of the policy within thirty (30) days of such request. A Certificate of Insurance is considered sufficient proof along with Additional Insured and Notice of Cancellation endorsements.

The MBTA reserves the right, but shall have no obligation, to provide all or a portion of the insurance required by the Contract on the Contractor’s behalf through an Owner Controlled Insurance Program

(OCIP). This election shall only be made by the MBTA in writing and, unless so made, the Contractor shall remain responsible for procuring and providing all required insurance. The Contractor will be responsible for complying with the requirements, rules and procedures of the OCIP.

If the MBTA elects to provide an OCIP for all or a portion of the insurance required by the Contract, the

MBTA and the Contractor will negotiate and agree upon a reduction to the compensation owed to the

Contractor as a result of the MBTA providing such insurance on the Contractor’s behalf. In a form satisfactory to the MBTA, the Contractor will provide information to the MBTA regarding the

Contractor’s costs for providing the applicable insurance, including, but not limited to, an estimate of labor cost (listed by Standard Workers’ Compensation Insurance classification) in connection with the work required under the Contract, copies of rate pages and declaration pages from general liability, excess liability and workers’ compensation insurance policies, loss pick rate or loss aggregate rate (if applicable), and other insurance-related information that the MBTA may need to effect and confirm that the MBTA has received complete information for the Contractor’s insurance cost.

The MBTA will have the right to audit the Contractor’s insurance information and documents to determine if it accurately reflects the actual cost of insurance incurred.

If the OCIP is cancelled, the Contractor shall procure the applicable insurance as required by the Contract, subject to adjustment to the compensation owed to the Contractor for the costs of procuring such insurance without additional markup by the Contractor.