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Insurance Requirements

Insurance

If providing services on College property, Contracting Party shall secure at its own expense and maintain in full force and effect during the term of the Agreement the following insurance requirements:

  1. Commercial General Liability. To include Independent Contractor's liability, Elevators, Products and Completed Operations, Explosion, Collapse, Underground Hazards and Contractual Liability, covering, but not limited to, the liability assumed under the indemnification provisions of this contract, fully insuring for bodily injury and property damage with a combined bodily injury (including death) and property damage minimum limit of:
    • $1,000,000 per occurrence
    • $2,000,000 general aggregate
    • $2,000,000 products and completed operations aggregate
    • $ 100,000 Fire Damage
    • $ 10,000 Medical Payments
  2. Comprehensive Automobile Liability. Insurance covering owned, hired, and non-owned vehicles, with a combined bodily injury (including death) and property damage minimum limit of $1,000,000 per occurrence. No aggregate shall be permitted for this type of coverage. Such insurance is to include coverage for loading and unloading hazards.
  3. Excess (Umbrella) Liability. Insuring for an amount of not less $5,000,000 and that provides coverage at least as broad as and applies in excess and follows form of the primary liability coverages required hereinabove. The policy shall provide "drop down" coverage where underlying primary insurance coverage limits are insufficient or exhausted. The required Commercial General Liability, Commercial Automobile and Employers Liability limits may be accomplished through a combination of primary and excess/umbrella liability policies written on a follow-form basis.
  4. Workers' Compensation. Insurance with limits as required by the Texas Workers’ Compensation Act, with the policy endorsed to provide a waiver of subrogation as to the LSC, Employer's Liability insurance of not less then:
    • $1,000,000 each accident
    • $1,000,000 disease each employee
    • $1,000,000 disease policy limit
    A Waiver of Subrogation in favor of LSC with respect to injuries/illness is required. Non- subscribers may be required to provide proof of financial strength by providing a letter of credit from a financial institution or other such proof of financial assurance. Self-Insured entities will be required to provide a copy of their Certificate of Authority to Self-Insure as provided by the Texas Department of Insurance, Division of Workers' Compensation.
  5. Professional Liability. (Professional Services) Insurance to cover claims for negligent acts and/or errors and/or omissions that may arise from the work performed by licensed or certified professionals or anyone directly or indirectly employed by them. Professional Liability Insurance (Occurrence Form) or if the insurance is written on a claims-made form, shall continue for ten (10) years following the completion of the performance or the attempted performance of the provisions of this agreement. The insurance shall have a retroactive date of placement prior to or coinciding with the effective date of this agreement. If the coverage is canceled or non-renewed and not replaced with another claims-made policy form with a retroactive date prior to the effective date or coinciding with the effective date of this agreement the licensed or certified professional must purchase Extended Reporting (“Tail”) coverage for a minimum of ten (10) years following the completion of the performance or the attempted performance of the provisions of this agreement, providing coverage in the amount of: a) $5,000,000 per claim and aggregate liability limit for a major project or continuing service projects where the aggregate project limit is greater than $2,000,000,000; b) $2,000,000 per claim and aggregate liability limit for a major project or continuing service projects where the aggregate project limit is $2,000,000 or less is required.
  6. Asbestos Abatement Liability. *This requirement applies if the work or the project includes asbestos containing materials. Coverage for liability arising from the encapsulation, removal, handling, storage, transportation, and disposal of asbestos containing materials. Coverage shall be written on an occurrence form. If the insurance is written on a claims-made form, insurance shall continue for ten (10) years following the completion of the performance or the attempted performance of the provisions of this agreement. The insurance shall have a retroactive date of placement prior to or coinciding with the effective date of this agreement. If the coverage is canceled or non-renewed and not replaced with another claims-made policy form with a retroactive date prior to the effective date or coinciding with the effective date of this agreement the licensed or certified professional must purchase Extended Reporting (“Tail”) coverage for a minimum of ten (10) years following the completion of the performance or the attempted performance of the provisions of this agreement, providing coverage in the amount of: a) $5,000,000 per claim and aggregate liability limit for a major project or continuing service projects where the aggregate project limit is greater than $2,000,000,000; b) $2,000,000 per claim and aggregate liability limit for a major project or continuing service projects where the aggregate project limit is $2,000,000 or less is required.
  7. Pollution Liability. Coverage required whenever work under contract involves pollution risk to the environment. Coverage must include sudden and gradual coverage for third party liability, including defense costs and completed operations with the following limits per loss:
    • $2,000,000 per occurrence
    • $2,000,000 aggregate
    If coverage is written on a a claims-made basis the Contractor needs to warrant that any retroactive date applicable to coverage under the policy precedes the effective date of the contract and that continuous coverage will be maintained or an extended reporting or discovery period will be exercised for a period of five (5) years, beginning from the time that work under this contract is completed.
  8. Builders’ Risk. Contractor shall purchase and maintain builders risk insurance in the amount of the initial contract amount plus values of subsequent modifications, change orders, and loss of materials supplied or installed by others comprising the value of the entire project at the site on a replacement cost basis without optional deductibles. Such builders risk insurance shall be maintained, unless otherwise provided in the contract documents or otherwise agreed in writing by all persons and entities who are beneficiaries of such insurance, until final payment has been made or until no person or entity other than LSC has insurable interest in the property to be covered, whichever is earlier. The builders risk insurance shall include interests of LSC, the general contractor, subcontractors, and sub-tier contractors in the project.

    The builders risk coverage shall be written on a Special Covered Cause of Loss form and shall include theft; vandalism; malicious mischief; collapse; false-work; temporary buildings; transit; debris removal, including demolition; increased cost of construction; architect’s fees and expenses; soft costs; flood, including water damage;, earthquake; and, if applicable, all below and above ground structures; piping; foundations, including underground water and sewer mains; piling, including the ground on which the structure rests; and excavation, backfilling, filling, and grading. Equipment breakdown coverage (boiler and machinery) shall be included as required by the contract documents or by law, which shall specifically cover insured equipment during installation and testing, including cold and hot testing.

    Insured property shall include portions of the work located away from the site but intended for use at the site and shall also cover portions of the work in transit. The policy shall cover the cost of removing debris, including demolition as may be made legally necessary by the operation of any law, ordinance, or regulation.

    The policy shall specifically permit partial or beneficial occupancy at or prior to substantial completion or final acceptance of the entire Work. Partial occupancy or use of the work shall not commence until the insurance company or companies providing insurance have consented to such partial occupancy or use. LSC and Contractor shall take reasonable steps to obtain consent of the insurance company or companies, and agree to take no action, other than upon mutual written consent, with respect to occupancy or use of the work that could lead to cancellation, lapse or reduction of insurance.

    The builders risk policy shall remain in force until acceptance of the project by the LSC.

    The deductible shall not exceed $5,000 (may be higher for Flood and Earthquake) and shall be the responsibility of the Contractor.

    Contractors engaged in modifications of existing structures are required to secure a Beneficial Occupancy Endorsement which enables the LSC to occupy the facility during construction.

    If LSC is damaged by failure of Contractor to maintain insurance as required in this section, then Contractor shall bear all reasonable costs properly attributable to that failure. Coverage shall be written for 100% of the completed value (replacement cost basis) of the work being performed. Waiver of Subrogation is to apply against all parties named as insureds, but only to the extent the loss is covered.

    If the Contractor does not intend to purchase such Builder’s Risk insurance required by the Contract and with all of the coverages in the amount described above, the Contractor shall so inform the LSC as stated in writing prior to commencement of the work. The LSC may then effect insurance that will protect the interests of the LSC, the General Contractor, Subcontractors and sub-tier contractors in the project. The cost shall be charged to the Contractor. Coverage shall be written for 100% of the completed value of the work being performed, with a deductible not to exceed $5,000 per occurrence for most projects. Higher deductibles may be used depending on size of contract. (Contact Risk Management for determination or approval of higher deductibles.)

    Other coverage may be required if provided in the Contract documents. Losses in excess of the deductible insured under the builders risk shall be adjusted in conjunction with the LSC. Any insurance payments/proceeds shall be made payable to the LSC. The contractor shall pay subcontractors their just shares of insurance proceeds received by the contractor, and by appropriate agreements, written where legally required for validity, shall require subcontractors to make payments to their sub-tier contractors in similar manner.

    Installation floaters are required from contractors performing a specialized job on an existing building or installing equipment or materials that are not included in a construction project contract.

    Contractor agrees that all work on the project pursuant to this Contract shall be at Contractor’s exclusive risk until final and complete acceptance thereof by LSC, and in case of any loss or damage thereto, in whole or in part, prior to such acceptance, however caused, such loss and/or damage shall be borne by Contractor.
    1. This insurance shall be specific as to coverage and not contributing insurance with any permanent insurance maintained on the property.
    2. This insurance shall not contain an occupancy clause suspending or reducing coverage should the LSC occupy, or begin beneficial occupancy before the LSC has accepted substantial completion. The Contractor will be notified of the date on which the Builder’s Risk insurance policy may be terminated through Substantial Completion Notices, Acceptance Notices and/or other means as deemed appropriate by the LSC.
    3. Loss, if any, shall be adjusted with and made payable to the LSC as Trustee for the insureds as their interests may appear; the right of subrogation under the Builder’s Risk policy shall be waived as to the LSC. The LSC shall be named as Loss Payee. For renovation projects or projects that involve portions of work contained within an existing structure, refer to Special Conditions for possible additional Builder’s Risk insurance requirements.
    4. The required insurance shall include coverage for LSC property in the care, custody and control of Contractor prior to construction and during construction.

Policies must include the following clauses and shall be specified in the Certificate of Insurance with a copy attached to the Certificate of Insurance:

  1. Endorsement to provide a minimum of thirty (30) days advance notice of cancellation, non- renewal, or material change of policies. Reference to the Cancellation endorsement to the policy shall be specified in the Certificate of Insurance and a copy attached to the Certificate of Insurance.
  2. This insurance shall apply as primary insurance/non-contributory with respect to any other insurance or self-insurance programs available to the LSC. Reference to the as primary/noncontributory endorsement to the policy shall be specified in the Certificate of Insurance and a copy attached to the Certificate of Insurance.
  3. LSC shall be named as an Additional Insured on a Primary and Non-Contributory basis for ongoing and completed operations on all policies except workers compensation and to the full extent allowable by law. Reference to the Additional Insured endorsement to the policy shall be specified in the Certificate of Insurance and a copy attached to the Certificate of Insurance.
  4. The workers’ compensation and employers’ liability policy will provide a waiver of subrogation in favor of the LSC.
  5. All policies must include a Waiver of Subrogation Clause.
  6. Coverage shall be written on an occurrence basis by companies authorized and admitted to do business in the State of Texas and rated A- VII or better by A.M. Best Company or otherwise acceptable to Owner.
  7. Without limiting any of the other obligations or liabilities of the Contractor, the Contractor shall require each subcontractor performing work under the Contract, at the subcontractor's own expense, to maintain during the term of the Contract, the same stipulated minimum insurance including the required provisions and additional policy conditions as shown below. As an alternative, the Contractor may include its subcontractors as additional insureds on its own coverage as prescribed under these requirements. The Contractor's certificate of insurance shall note in such event that the subcontractors are included as additional insureds and that Contractor agrees to provide Workers’ Compensation for the subcontractors and their employees. Coverage shall be written on an occurrence basis by companies authorized and admitted to do business in the State of Texas and rated A- VII or better by A.M. Best Company or otherwise acceptable to the LSC

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