SAMPLE CONTRACTOR MINIMUM LIABILITY INSURANCE REQUIREMENTS For General Liability and Contractors Pollution Liability Only Maintaining the insurance coverages below are a material part of our decision to engage the services of Contractors. The Contractor shall, at its sole expense, purchase and maintain insurance as outlined below. A. Minimum Scope of Insurance for Contractor Coverage shall be at least as broad as: 1. General Liability provided under the Insurance Services Office Form #CG 00 01 12 04 or the most recently approved State version of this form, covering Commercial General Liability, including coverage for the insureds Premises, Operations, Products Liability, Completed Operations and Contractual Liability. This policy or coverage part of a package policy should be written on an Occurrence basis Coverage need not be provided for loss: a. Caused by mold, fungus, or bacteria except for goods or products intended for ingestion; b. Caused by a terrorist act; c. Arising out of the rendering of or failing to render any professional services, except professional services will not include construction means, methods, techniques, sequences and procedures employed by the contractor in connection with operations in the capacity as a construction contractor; d. Arising out of asbestos, or lead; The policy shall allow a Waiver of Subrogation in favor of the following parties, a. Owner/ Network/Franchisor Products and Completed Operations coverage shall be maintained through the purchase of renewal policies to protect the insured and additional insured for at least 2 years after the property owner accepts the project or this contract is terminated. C:\Docstoc\Working\pdf\eb5c828e-2064-4411-99ec-779dc19f915b.doc Page 1 of 4 2. Contractors Pollution Liability or a equivalent coverage extension in the General Liability policy. This policy shall provide coverage for: a. Bodily injury, sickness, disease, sustained by any person, including death; b. Property damage including physical injury to or destruction of tangible property including the resulting loss of use thereof; clean up costs, and the loss of use of tangible property that has not been physically injured or destroyed. The property damage liability coverage shall include property damage to the project or work of the named insured arising out the covered operations; c. Defense costs including costs, charges and expenses incurred in the investigation, adjustment or defense of claims; d. Contractual liability coverage, e.g. coverage for liability assumed by the named insured under a written contract or agreement. e. Damage caused by pollutants including but not limited to mold, fungus, bacteria asbestos and lead. f. The full scope of the named insureds operations as described within the scope of work for this contract. g. This coverage can be provided on either claims made of occurrence based policy form. The policy may not contain separate restrictions for: a. Asbestos, lead or the repair of EFIS surfaces for the operations of the contractor. However exclusions for the installation of new EFIS are acceptable. b. Insured versus insured actions. However exclusions for claims made between insureds within the same economic family are acceptable. c. For completed operations in any coverage part of the policy for either the insured or the additional insured certificate holder. d. Damage to property that cannot be used or is less useful because of the operations of the insured. (Most Impaired Property exclusions are not acceptable.) e. Work performed by subcontractors. If coverage is provided on a claims-made basis, coverage will at least be retroactive to the earlier of the date of this Contract or the commencement of contractor services in relation to the Work and the policy will offer an extended discovery clause of at least three years. If written either on an occurrence or claims made basis, this coverage will be maintained through the renewal of this insurance to cover a loss arising out of the C:\Docstoc\Working\pdf\eb5c828e-2064-4411-99ec-779dc19f915b.doc Page 2 of 4 completed operations of the insured for a period of at least 2 years after the work is accepted as complete by the property owner or this contract is terminated. The policy shall allow a Waiver of Subrogation in favor of the following parties, a. Owner /Network/Franchisor B. Minimum Limits of Insurance for Contractor Contractor shall maintain limits no less than: 1. Commercial General Liability for bodily injury, personal injury, advertising injury and property damage. a. Annual General Aggregate Limit (other than Products-Completed Operations) $1,000,000 b. Products-Completed Operations Aggregate $2,000,000 c. Personal and Advertising Injury Limit $1,000,000 d. Each Occurrence Limit $1,000,000 2. Contractors Pollution Liability: $1,000,000 per loss; $1,000,000 annual aggregate. 3. Use of CGL/CPL package policies, if a package policy is utilized the following limits will apply: $2,000,000 per loss; $2,000,000 in aggregate. 4. The insurance requirements as set forth herein are the minimum limits and the minimum coverage’s to be maintained. . C. Acceptability of Insurers Unless otherwise agreed to in writing by Owner, insurance is to be placed with insurers, who have a Best’s Insurance Reports rating of no less than “A-” and a financial size of no less than Class “VIII”, D. Additional Insureds The following parties shall be named as additional insureds or designated insureds on the Commercial General Liability, Contractors Pollution Liability for liability arising out of the project work: 1. Owner / Network/ Franchisor 2. (List other appropriate legal entities) The Commercial General Liability coverage for these additional insureds shall be on a primary and non-contributory basis. The Commercial General Liability policy shall provide that any C:\Docstoc\Working\pdf\eb5c828e-2064-4411-99ec-779dc19f915b.doc Page 3 of 4 insurance maintained by the additional insureds is excess and non-contributing with any insurance required hereunder. The Additional Insured endorsement on the CGL and CPL policies shall be provided under – Insurance Services Office Form #CG 20 37 07 04. Owners, Lessees or Contractors – Completed Operations Endorsement, F. Evidence of Insurance 1. At least ten (10) days prior to commencing the Work, and within one (1) business day after any renewal or replacement of coverage or any request from the Owner/Network/Franchisor, the Contractor shall submit to the Owner/Network/Franchisor a certificate of insurance evidencing the limits and coverage’s as required herein. 2. The licensed insurance agent preparing the certificate of insurance shall make this acknowledgement within the certificate of insurance or in a separate cover letter to be provided with the certificate; As the licensed insurance agent providing this certificate of insurance I acknowledge that the insurance requirements as detailed in this insurance specification are a material part of the decision to engage the services of (insert the name of the contractor) and that I have reviewed the insurance requirements in the (insert contract name). G. Additional Insurance Requirements 1. Any and all deductibles or other forms of retention are the responsibility of the Contractor. All deductibles or other forms of retention are subject to the approval of Owner. Contractor will disclose to the Owner in writing the amounts of any deductibles or self-insured retentions on the insurance required under this contract. 2. The maximum allowable deductible or self-insured retention is $10,000 unless special arrangements are made with the owner/network/franchisor. C:\Docstoc\Working\pdf\eb5c828e-2064-4411-99ec-779dc19f915b.doc Page 4 of 4
"Contractors Liability Insurance"