Subcontractor Insurance Requirements
Before performing work or conducting any activities at the site of the Project, Subcontractor shall, at its expense, procure and maintain insurance on all of its operations, in admitted companies having at least an A. M. Best rating of no les than A-VIII (except for State Fund for Workers' Compensation coverage), or Contractor may consider accepting coverage from a non-California admitted carrier with an A. M. Best rating of A or better, financial capacity of XII or better and in forms acceptable to the Contractor as follows:
- Workers' Compensation and Employer's Liability Insurance as required by any applicable law or regulation. Employers Liability Insurance shall be provided in the amounts not less than:
- $1,000,000 each accident for bodily injury by accident;
$1,000,000 each employee for bodily injury by disease;
$1,000,000 policy limit for bodily injury by disease;
- Waiver of Subrogation endorsement in favor of the Contractor and the Project Owner as required by contract.
- If there is an exposure of injury to Subcontractor's employees under the U.S. Longshoremen's and Harbor Workers' Compensation Act, the Jones Act or under laws, regulations or statutes applicable to maritime employees, coverage shall be included for such injuries or claims.
- $1,000,000 each accident for bodily injury by accident;
- General Liability Insurance, either Comprehensive General Liability or Commercial General Liability on coverage forms at least as broad as 1997 Insurance Services Office (ISO) occurrence form CG 0001, including coverage for:
- Premises and Operations.
- Products and Completed Operations.
- Broad Form Property Damage (Including Completed Operations).
- Explosion, Collapse, And Underground Hazards (including subsidence).
- Contractual Liability insuring obligations assumed in this agreement.
- Personal Injury and Advertising Liability.
- Severability of Interest Clause.
- General Aggregate Limits of Insurance shall apply separately to the project.
- "Claims Made" and "Modified Occurrence" policy forms are not acceptable.
- "Risk Retention Groups" are not acceptable.
- Any self-insured retention or deductible greater than $25,000 must be declared to contractor at time of bid and approved by contractor in writing.
- Subcontractor shall maintain primary and excess products liability and completed operations coverage through the expiration of the patent deficiency in construction statute of repose set forth in Section 337.1 of the California Code of Civil Procedure.
- Minimum Limits of Liability shall not be less than:
- $1,000,000 each occurrence Bodily Injury and Property Damage combined;
- $1,000,000 for Personal Injury Liability;
- $2,000,000 Products & Completed Operations aggregate;
- $2,000,000 general aggregate;
- If either defense costs are included in the General Aggregate limits or if the General Aggregate limit does not apply separately to this project, then the required General Aggregate limit shall be $3,000,000. This additional limit can be provided by an umbrella policy.
- Automobile Liability on a coverage form at least as broad as ISO form CA 0001, including:
- Coverage on all owned, non-owned or hired automobiles
- Limits of liability shall not be less than $1,000,000 Combined Single Limit for bodily injury and property damage
- Contractor and owner shall be named as additional insured
- Increased Liability Limited:
- If higher limits of insurance are required by either the Owner or the Contractor, the Subcontractor will comply with such requirements by providing evidence of an umbrella or excess liability policy.
- Additional Insured and Primary Insured Requirements:
- Under the commercial general liability policy, the subcontractor shall add the Contractor, its officers, directors and employees and the Owner (as required in this Agreement) as additional insured. The policy shall stipulate that the insurance afforded the Contractor and the Owner as additional insured shall apply as primary insurance. Any other insurance carried by the Contractor or the Owner will be excess only and will not contribute with this insurance.
- The additional insured coverage shall be provided by an endorsement providing coverage at least as broad as:
- Additional Insured (Form B) endorsement form CG 2010 (1985 version) as published by the ISO (or equivalent);
- A combination of Additional Insured endorsement form CG 2010 (any edition date) as published by the ISO (or equivalent) and Additional Insured endorsement form CG 2037 1001 (2001 version) as published by the ISO (or equivalent);
- Additional insured endorsements shall be provided for three years following project completion.
- Evidence of Coverage and Certificate of Insurance:
Certificates of Insurance shall be furnished by Subcontractor to Contractor before any work is commenced by the Subcontractor. The Certificates Of Insurance shall provide that there will be no cancellation or reduction of coverage without thirty (30) days prior written notice to Contractor, except for (10) days in the event of non-payment of premium. In the event Subcontractor does not comply with the requirements of this section, Contractor, at its option, may provide insurance coverage to protect its interests and charge the subcontractor for the cost of that insurance or Contractor may terminate this Agreement. The required insurance shall be subject to approval of Contractor, but any acceptance of insurance certificates by Contractor shall in no way limit or relieve Subcontractor of the duties and responsibilities assumed by Subcontractor in this agreement. Allowance of any additional exclusions or coverage limiting endorsements is at the discretion of Contractor, and Subcontractor's bid shall be subject to adjustment to compensate for the existence of such exclusions. Payment may be withheld, at the option of the Contractor, until such certificates have been furnished, or if upon receipt of a cancellation notice on a policy, until withdrawal of the notice or the reinstatement of the canceled policy. Copies of policies shall be furnished upon request.
- Insurance Requirement for Sub-Subcontractors, Truckers, Vendors and Suppliers:
Subcontractor shall ensure that it's Subcontractors, Truckers, Vendors and Suppliers of any tier shall maintain insurance in like form and amounts, including the Additional Insured requirements set forth above, and will provide contractor evidence of sub-Subcontractors, truckers, vendors and suppliers insurance prior to their starting work.
- Waiver of Subrogation:
Contractor and Subcontractor waiver all rights against each other and against all other Subcontractors and Owner(s) for loss or damage to the extent reimbursed by Builder's Risk or any other property or equipment insurance applicable to the work, except such rights as they may have to the proceeds of such insurance. If the insurance policies require an endorsement or consent of the insurance company to provide for continued coverage where there is a waiver of subrogation, the owners of such policies will cause them to be so endorsed. Valli Construction requires a waiver for General Liability & Workers Compensation. These are separate endorsements.
- Builders Risk Insurance:
Upon written request of the Subcontractor, Contractor shall provide Subcontractor with a copy of the Builders Risk policy of insurance or any other property or equipment policy in force for the project and procured by the Contractor. Subcontractor shall satisfy itself as to the existence and extent of such insurance prior to commencement of Subcontractor's work.
If Builders Risk insurance purchased by Owner or Contractor provides coverage for Subcontractor for loss or damage to Subcontractor's work, Subcontractor shall be responsible for the insurance policy deductible amount up to $5,000.
If Owner or Contractor has not purchased Builders Risk or equivalent insurance including the full insurable value of Subcontractor's work, then Subcontractor may procure such insurance at it's own expense as will protect the interests of Subcontractor and it's subcontractors in the work. Such insurance shall also apply to any of Owner's or Contractor's property in the care, custody or control of the Subcontractor
- Property Insurance:
Subcontractors of every tier shall procure and maintain at its own expense property and equipment insurance for Subcontractor's tools, equipment, temporary structures, work in progress (if not covered in 10 above), and work in transit or in temporary storage.
- Professional Liability Exposure:
A $1,000,000 Professional Liability Insurance Policy shall be carried by Subcontractor its design professional if work under this subcontract includes professional or design-build services. Evidence of coverage in the form of a Certificate of Insurance shall be provided prior to the start of the project. Coverage must allow for the reporting of claims for a minimum of 10 years following completion of the project. However, if owner or contractor elects to purchase a project design policy, Subcontractor's policy will be endorsed to provide coverage once the design policy has been exhausted.
- Aircraft/Helicopter Insurance:
If the Subcontractor or their Subcontractors use any owned, leased, chartered or hired aircraft of any type in the performance of this contract, they shall maintain aircraft liability insurance in an amount of not less than $10,000,000 per occurrence including Passenger Liability. Evidence of coverage in the form of a certificate of insurance shall be provided prior to the start of the project.
- Hazardous Materials and Pollution Liability:
- If Subcontractors or their Subcontractors or Suppliers of any tier are either required to perform remediation of hazardous materials as those terms are defined in federal, state or local law, or if their operations create an exposure to hazardous materials, they must, in addition to the above requirements, carry a "Contractor's Pollution Liability" policy with limits not less than $1,000,000 per occurrence and not less than $2,000,000 aggregate for Bodily Injury, Personal Injury and Property Damage, naming Contractor as additional Insured. This policy shall have no exclusion for Microbial Matter (Mold).
- If Subcontractor or their Subcontractors haul hazardous material (including, without limitation, waste), the policy must extend pollution coverage to the transportation of hazardous materials or pollutants by waste hauling vehicles. If Subcontractor is subject to the Motor Carrier Act of 1980, the Motor Carrier Act endorsement MCS-90 must be obtained and attached to the policy.
- Riggers Liability:
Should Subcontractor's work involve the moving, lifting, lowering, rigging or hoisting of property or equipment, Subcontractor shall carry Rigger's Liability Insurance to insure against physical loss or damage to the property or equipment.
- Work Near Railroads:
If Subcontractor (including any lower tier Subcontractor or supplier) performs any work or conducts any operations within fifty feet of any railroad (including any light rail, fixed rail or other rail system), Subcontractor shall obtain an endorsement of its Commercial General Liability policy to delete any exclusion, including the "Contractual Liability" exclusion, for work performed within fifty feet of a railroad. A copy of such endorsement shall be provided to Contractor prior to any work or operations by Subcontractor within fifty feet of any railroad.
- Other Requirements:
- Any acceptance of insurance certificates by Contractor shall in no way limit or relieve Subcontractor of its duties and responsibilities under this Agreement including the duty to indemnify and hold harmless Contractor under other provisions hereof. Insurance coverage in the minimum amounts set forth herein shall not be construed to relieve Subcontractor for liability in excess of such coverage nor shall it preclude Contractor from taking such other actions as is available to it under any other provision of this Agreement or law. If higher limits or other forms of insurance are required in the Prime Contract, Subcontractor will comply with such requirements.
- Subcontractor shall be responsible for any deductible amount or any loss arising out of coverage denials by its insurance carrier(s).
- Should any insurance policy lapse or be canceled during the contract period, Subcontractor shall, prior to the effective expiration or cancellation date, furnish Contractor with evidence of renewal or replacement of the policy. Failure to continuously satisfy insurance requirements as herein provided is a material breach of contract. In the event Subcontractor fails to maintain any insurance coverage required, Contractor may, but is not required to, maintain such coverage and charge the expense to Subcontractor or terminate this contract.
- Subcontractor's obligations for loss or damage arising out of Subcontractor's work are in no way limited to the types or amounts of insurance set forth above. To the extent Subcontractor maintains insurance greater than these minimum requirements; Subcontractor agrees that such insurance shall be applicable to any of Subcontractor's liability obligations hereunder. In specifying minimum insurance requirements herein, neither Contractor nor Owner assert or recommend this insurance as adequate to Subcontractor's requirements. Subcontractor is solely responsible to inform itself of types or amounts of insurance it may need beyond these requirements to protect itself from loss, damage, or liability.
- Valli Construction requires job specific insurance certificates & all endorsements as required. Please see attached samples. Please note that All California Operations is NOT an acceptable substitute for job-specific insurance. All California Operations can only be used as proof of insurance until a job-specific insurance certificate is issued.