Benchmarking Insurance Requirements for Suppliers

Viewing 15 posts - 1 through 15 (of 28 total)
  • Author
    Posts
  • #292521

    This SIG Member from the Buy-side is interested in benchmarking the insurance requirements for suppliers. 

    Will you please share the insurance clause that you use in your contract templates? 

    You can email them to: [email protected]

     

    #295301
    Anonymous
    Guest

    A new thing is with cloud software, I am seeing insurance clauses for cyber insurance. 

    #295302
    Anonymous
    Guest

    ATTACHMENT C

    INSURANCE

     

    This Schedule C (Insurance) sets forth Supplier’s insurance obligations under the Agreement.  Additional insurance requirements may be set forth in an sow.  

     

    1.Minimum Coverage Levels.  During the Term, Supplier will maintain, and will require each Subcontractor, if any, to maintain the minimum levels of insurance coverage as specifically outlined in this Attachment C (Insurance) during the Term. Supplier will be responsible and will therefore indemnify Customer, for any claim that would otherwise be covered by the insurance coverage outlined in Attachment C (Insurance) if Supplier fails to procure and/or maintain the minimum insurance levels. 

     

    2Insurance Requirements Are Not a Limitation on Liability.  The insurance requirements set forth in Attachment C (Insurance) as to types and limits of insurance coverage to be maintained by Supplier are not intended to, and will not in any manner, limit or quantify the liabilities and obligations assumed by Supplier pursuant to this Agreement nor is any limitation of liability intended to limit the insurance coverage. 

     

    3.Notice of Cancellation.  Supplier will provide that the insurance will not be cancelled, non renewed or materially changed without at least thirty (30) days prior written notice.  

     

    4.Insurer Qualifications.  All insurers must be licensed or approved to do business in the State of Florida or in the state(s) where the Services will be performed and must maintain an A.M. Best ting of at least “A-” or better and financial size category VIII or larger. 

     

    5.Certificates.  Prior to commencing Services and annually thereafter throughout the Term, Supplier will provide Customer with certificates of insurance as evidence that the required insurance is in force.  

     

    6.Limits.  During the Term, the Supplier will maintain at least the following insurance:

     

    (i)Commercial General Liability. Standard Insurance Services Office (ISO) Commercial General Liability (CGL) or equivalent form providing combined bodily injury and property damage limits of liability coverage of at least $1,000,000 per occurrence, $2,000,000 general aggregate and $2,000,000 products and completed operations aggregate.  The policy must name Customer and its Affiliates as additional insureds.  The policy will be primary, and any coverage maintained by Customer will be excess and not contributory.  A Waiver of Subrogation in favor of Customer and its Affiliates is required.

     

    (ii)Automotive Liability.  Coverage for all owned, hired and non-owned vehicles with a combined bodily injury and property damage limit of at least $1,000,000 per accident.  The policy must name Customer and its Affiliates as additional insureds.  A Waiver of Subrogation in favor of Customer and its Affiliates is required if any vehicle is used in the performance of work or services, or brought onto Customer’s property or premises.

     

    (iii)Workers’ Compensation and Employer’s Liability.  Coverage as required by Florida Workers’ Compensation statutes or the Workers’ Compensation statutes where the work is being performed, where employees reside and in accordance with the laws of each state.  The policy will include Employers Liability coverage with limits of liability not less than $500,000 Each Accident; $500,000 Disease – Policy Limit; $500,000 Disease – Each Employee. A Waiver of Subrogation in favor of Customer and its Affiliates is required. If Supplier is providing temporary staffing, an Alternate Employer Endorsement in favor of Customer and its Affiliates is required.

     

    (iv)Commercial Umbrella Liability.  Umbrella Liability coverage over a schedule of underlying liability coverages as described above (Commercial General Liability, Automobile Liability, and Employer’s Liability) for a combined bodily injury and property damage limit of at least $5,000,000 each occurrence and $5,000,000 general aggregate.

     

    (v)Employee Theft or Employee Dishonesty.  Limits of at least $1,000,000 per occurrence, including third party coverage for property belonging to Customer and its Affiliates.  Customer and its Affiliates must be named as loss payee.

     

    (vi)Errors & Omissions (or Professional) Liability.  If any medical or professional services are being performed, Errors & Omissions (or Professional) Liability coverage with limits of at least $10,000,000 per claim and $10,000,000 aggregate is required.  Coverage must apply to all operations and/or services performed under this contract. The policy must name Customer and its Affiliates as additional insureds if Supplier is providing services to others on our behalf.

     

    (vii)Network Security and Privacy Liability.  Coverage with limits of at least $10,000,000 per claim and $10,000,000 aggregate is required.  The policy must name Customer and its Affiliates as additional insureds if Supplier is providing services to others on our behalf.

     

    (viii)Tail Liability.  If any such liability policies are written on a “claims made” form, Supplier will agree to maintain such coverage in force for three (3) years following the termination of Agreement or purchase adequate “tail liability” insurance upon the termination of this Agreement.

     

    #295303
    Anonymous
    Guest

    Liability Insurance.  Vendor agrees to obtain from an insurance carrier with a minimum AM Best rating of A-, and maintain during the Term and for one (1) year thereafter: (i) comprehensive general liability insurance in an amount not less than $1,000,000 per occurrence and $2,000,000 in the aggregate; (ii) errors and omissions insurance in an amount not less than $1,000,000 per claim and $2,000,000 in the aggregate; (iii) automobile liability insurance in an amount not less than $1,000,000 per occurrence, (iv) umbrella liability insurance in an amount not less than $2,000,000; (v) employer’s liability insurance in an amount not less than $1,000,000 per occurrence subject to statutory minimums; and (vi) worker’s compensation insurance coverage sufficient to meet the statutory requirements of every state in which Vendor personnel are performing Services on behalf of _______.  If Vendors are providing software or SaaS products, or associated services, or who are providing Deliverables to be included in __________ products, Vendors shall also carry cybersecurity insurance in an amount not less than $1,000,000 per claim and $2,000,000 in the aggregate.  In the case of the comprehensive general liability policy described in (i), such insurance shall name ServiceNow___________ as an additional insured and will protect Vendor and ________ and each _____________ Affiliate from claims for personal injury (including bodily injury and death), intellectual property and other property damage.  All insurance shall be primary and not contributory and shall provide that coverage may not be reduced or canceled without prior written notice to _____________.  Upon request, Vendor shall provide _______________ with certificates of insurance evidencing the coverage described above.

    #295304
    Anonymous
    Guest

    I’ve pasted an example of an insurance clause below my signature block.  Our firm has helped dozens of corporations and governmental agencies optimize their procurement template contract documents; and this is a generic sample of that type of clause.

     

    Several things should be noted:

     

    •The SIG member needs to review any sample language (from us or others) with their own legal counsel before using for their business purposes. 

     

    •The below sample is from a General Services template agreement.  The insurance policy types and amounts for other categories of agreements would obviously differ for other types of contracts – for example, Professional Services, Volume Purchase Agreement, Software License Agreement, Software License & Maintenance Agreement, Software as a Service (SaaS) Agreement, Temporary Labor Agreement, Transportation Services Agreement, Distributor Purchase Agreement, etc. 

     

    •The dollar coverage amounts (per occurrence and aggregate) will vary by size and scope of customer or engagement.  The CGL coverage you require from a construction firm doing a major project will obviously be different than the CGL coverage you require from a outsourced data management firm, etc.  

     

    •Our firm frequently helps clients to choose appropriate insurance language (types and limits) and optimize their contract templates, if the SIG member would like assistance with this.  I’d be happy to chat with them about their project.

     

    •No matter what language is in contracts, careful administration is absolutely critical.  80% of the average company’s suppliers are not in full compliance with their customer’s contractual requirements for insurance coverage.  Endorsement language is wrong.  Additional insured requirements incorrect.  Insurance policies change with renewals.  Policies expire on different dates than the supplier contract.  

     

    •Very few companies administer supplier insurance well.  Of interest, there is a free solution the SIG member can use to actively manage every one of their supplier’s insurance compliance (along with having real-time visibility to each supplier’s financial stability, verification against 1,500 governmental watch lists, tracking for legal judgments and lien filings, taxpayer verification, negative news media exposure tracking, supplier diversity categorization, etc).  The provider is the first to perform insurance management digitally through APIs to the insurance carriers [thus eliminating the need to have suppliers upload Certificates of Insurance manually.  I’d be happy to share the name of this resource with the SIG member.  

     

    Hope this is helpful…

     

    Regards,

     

    Mark Trowbridge, CPSM, C.P.M., MCIPS

    Principal

    +1.209.419.1699

    [email protected]

     

    Strategic Procurement Solutions, LLC

    Supply Management Sourcing, Staffing & Training

    http://www.StrategicProcurementSolutions.com

     

     

    Sample insurance clause from General Services Agreement:

     

     

    SC-5   INSURANCE:  

    During the term of this Agreement, Supplier shall procure and maintain, at Supplier’s sole cost and expense, the following insurance coverage:

    A.Commercial General Liability Insurance, including but not limited to, premises, products, completed operations (if Services are being provided) and contractual liability, with limits of not less than $2,000,000 per occurrence and $5,000,000 annual aggregate, for bodily injury and property damage.  Said insurance shall be provided on an “occurrence” form.

    B.Automobile Liability Insurance (if performing any activities on Customer’s premises), with limits of not less than $500,000 per occurrence, combined single limit, for bodily injury and property damage, covering owned, non-owned, and hired vehicles.

    C.Workers Compensation and Employers Liability Insurance if Supplier is an employer of one or more employees, providing workers compensation and employer’s liability coverage with minimum limits of:

    (a)Workers Compensation – Statutory as required by law

    (b)Employers Liability-

    Bodily injury by accident:              $1,000,000 each accident

    Bodily injury by disease:                $1,000,000 each employee

    Bodily injury by disease:                $1,000,000 policy limit

     

    D. (Optional) Builders Risk Insurance covering property involved in construction, whether onsite at a Customer location or offsite elsewhere, with limits not less than $1,000,000 per occurrence. (If deleted, leave following bracketed statement:) [Intentionally Left Blank]

     

    E.Each of Supplier’s insurance policies: 

     

    (a)Shall be issued by companies that are admitted insurers in the jurisdiction in which any Services are being provided hereunder;

    (b)Shall be primary and noncontributory with any of Customer’s insurance;

    (c)Shall name “Customer, Inc., its affiliated companies, and their respective owners, officers, and employees” as additional insureds (except workers compensation and employer’s liability); and

    (d)Shall waive rights of subrogation against Customer, its affiliated companies, and their respective owners, officers, and employees; and

    (e)Shall provide Customer with 30 days prior written notice of cancellation, non-renewal or material change in the form or limits of coverage.

    F.Supplier shall require that any subcontractors performing Services hereunder, if any, shall carry insurance to the same extent and with the same minimum limits as required herein for Supplier.  Any endorsements such as listing of Customer as an “additional insured” shall be provided by such subcontractors to the same degree as required of Supplier hereunder.  Such insurance may be provided by Supplier or by the subcontractor itself.

     

    G.None of the foregoing requirements as to the type and limits of insurance to be maintained by Supplier and its subcontractors are intended to and shall not in any manner limit or qualify the liabilities and obligations assumed by Supplier under this Agreement.

     

    H.Supplier and its subcontractors shall cause their insurance carriers, brokers or agents to issue to Customer or its contracted administrator certificates of insurance evidencing all insurance coverage levels required by this Section.  Notwithstanding any other provision of this Agreement, failure by Supplier or its subcontractors to provide the insurance coverages provided for herein, or the certificates of insurance, shall be grounds for immediate termination of this Agreement at the sole determination of Customer.

     

     

    #295305
    Anonymous
    Guest

    Insurance

    During the term of this agreement , the supplier shall maintain insurance coverage (with on eo rmor insurance companz that has a rating of A minus or better and a financial size category of VIII or larger and that are licensed or approved to do business in the jurisdiction in which te Services are provided as will protect client to an adequate level against all losses or damages that it may suffer or which may be claimed by a third party arising or resulting from the Suppliers performance or failure to perform under the Agreement, and as the Supplier is required to carry by law. The sullpier shall provide client evidence of such an insurance. Supplier shall submit to client a copy of the insurance policy

     

    #295306
    Anonymous
    Guest

    Insurance. Supplier shall maintain, at its own expense, the types of insurance coverage specified below, on standard policy forms and with insurance companies with at least an A.M. Best Rating of A-VII authorized to do business in the jurisdictions where the Supplier’s services are to be performed. Within ten (10) days of the Effective Date and thereafter upon Customer’s written request, Supplier shall provide a certificate of insurance evidencing the following coverages: 

    (1) Workers’ Compensation insurance prescribed by applicable local law and Employers Liability insurance, with limits not less than $1,000,000 per accident/per employee; 

    (2) Commercial General Liability insurance including Contractual Liability Coverage, with coverage for products liability, completed operations, property damage and bodily injury, including death, with an aggregate limit of no less than $2,000,000. This policy shall name Customer as an additional insured with respect to the provision of services provided under this Agreement; and 

    (3) Technology Professional Liability Errors & Omissions policy (which includes Cyber Risk coverage and Computer Security and Privacy Liability coverage) with a limit of no less than $10,000,000 per occurrence and in the aggregate.

     

    #295307
    Anonymous
    Guest

    1.Insurance.  Prior to commencing activity under this Agreement, Vendor shall, at its own expense, obtain and thereafter maintain and carry in full force and effect for a period of not less than two (2) years following the Term of this Agreement, insurance coverage as set forth in EXHIBIT D, INSURANCE, which is attached hereto, made a part hereof, and is incorporated herein by this reference (“Exhibit D”), in the types and amounts listed below and naming [company] as an additional insured (except Workers Compensation/ Employers Liability) and include a Waiver of subrogation in favor of [company] on Vendor’s policy:  (i) statutory Workers Compensation insurance (including Employers Liability with limits of not less than $500,000 each occurrence), (ii) Commercial General Liability insurance (including completed operations, products, independent contractors and contractual liability insurance in an occurrence form) with limits of not less than $1,000,000 each occurrence and $2,000,000 general aggregate, and (iii) Automobile Liability insurance (including owned, non-owned and hired vehicles) with limits of not less than $1,000,000 combined single limit each occurrence for bodily injury and property damage), providing adequate protection for [company], including reasonable attorney fees, resulting from or in connection with any of the circumstances described in Section 12 of this Agreement. Such insurance policies shall not be canceled or materially changed in form without at least thirty (30) days written notice to [company].  Upon execution of this Agreement, and upon any policy revision or renewal, Vendor shall provide [company] with a Certificate of Insurance evidencing that the insurance requirements have been satisfied and specifying that [company] will receive a minimum 30-day advance written notice of any cancellation of or reduction in coverage.  Any adjustment must be confirmed in writing by [company] Risk Management Director.   Vendor shall provide [company] with a copy of a Certificate of Insurance evidencing such insurance within ten (10) days following execution of this Agreement.

    #295308
    Anonymous
    Guest

    1.1        Insurance

    Vendor will maintain insurance policies with reputable insurance companies subject to reasonable limits, as follows

    Comprehensive General Liability, including Products, Completed Operations, Premises

    Property insurance, including coverage for the perils of burglary, fire and flood in such amount equal to the replacement cost value of property relating to <Company> services (including but not limited, any Inventory)

    Employer’s Liability, and Worker’s Comp of at least $1M or the amount required by law, whichever is greater 

     

    Each of the above-mentioned liability policies shall have a minimum $5,000,000 limit from underwriters rated by A.M. Best’s Insurance Rating of A- or better. Vendor will provide certificates of insurance showing evidence of the above-required insurance policies. For the avoidance of doubt, the insurance obligations stated above shall be considered material terms of future agreement.

     

    Prior to finalizing any Agreement, <Company> will review each Vendor’s insurance coverage to ensure that Vendor meets the necessary insurance requirements outlined in the <Company> Master Services Agreement.

     

    #295309
    Anonymous
    Guest

    Insurance clauses are tailored to the type of service or product being procured by the City of Long Beach.  Every bid document and RFP will have the City Risk Management Bureau review the insurance section to revise the “standard language” to fit.  That way the potential bidders know what will be required of them.

     

    Purchase orders also have “standard insurance language” on them, but would be superseded by the contract requirements.  Hope that is helpful for you!  

     

    #295310
    Anonymous
    Guest

    INSURANCE REQUIREMENTS. SELLER will: (i) maintain insurance coverage set forth below with insurance companies having an A.M. Best rating of A- or better or an equivalent rating, (ii) send a certificate(s) of insurance to BUYER at each anniversary of the EFFECTIVE DATE, and (iii) cause its subcontractors to maintain reasonable insurance coverage. All insurance policies are primary without right of contribution from any of BUYER’s insurance. SELLER is entitled to achieve the CGL, automobile liability, and employers liability insurance policy limits as set forth below through any combination of primary and follow form excess, or umbrella, liability policies. CGL will include BUYER as additional insured to be stated explicitly on the certificate of insurance. To the extent legally permissible, SELLER will waive its rights of recovery and will cause its insurers to waive any rights of subrogation for claims against BUYER for all the types of insurance set forth above. 

     

    Insurance coverage:

    (i) Commercial General Liability (“CGL”) on an “occurrence form” with minimum limits of $5,000,000 per occurrence combined single limit for bodily injury, property damage and personal injury arising out of SELLER’s premises, operations, products, and completed operations

    (ii) If work is performed in the United States of America, workers compensation insurance and a minimum of U.S. $1,000,000 employer’s liability insurance; and

    (iii) If work is performed in the United States of America or Canada and SELLER uses owned, hired or non-owned vehicles, automobile liability with minimum limits of liability of $2,000,000 per accident combined single limit bodily injury and property damage. 

     

    #295311
    Anonymous
    Guest

    1.Insurance

    Independent Contractor or Vendor shall, at its own expense, maintain insurance as outlined below with minimum limits as referenced. Buying Company shall be named as an additional insured on policies providing coverage for a, b, e and f below;

     

    a)Commercial General Liability: Minimum limits of $1,000,000 per occurrence/$2,000,000 aggregate written on an occurrence basis.

    b)Umbrella Liability: $3,000,000 minimum limits in excess of underlying limits. The umbrella shall be no more restrictive than underlying coverage.

    c)Worker’s Compensation and Employer’s Liability: Statutory State limits.

     

    Additionally, if applicable:

     

    d)Professional Liability: Minimum limits of $1,000,000. Coverage shall be maintained for at least four (4) years subsequent to the termination date of this Agreement; during such four-year period there shall be no change to the retroactive date of coverage.

    e)Cyber Liability: Minimum limits of $10,000,000 per occurrence/$10,000,000 aggregate which shall include Internet media, network security, and privacy liability.

    f)Liquor Liability: Minimum limits of $1,000,000 per occurrence/$2,000,000 aggregate written on an occurrence basis.

     

    These coverages and limits are to be considered minimum requirements under this contract and in no way limit the liability of Independent Contractor or Vendor.

     

    Each policy shall provide for notification to Buying Company thirty (30) days prior to termination, material change or restrictive amendments. The insurance companies issuing the policies shall have no recourse against Buying Company for payment of any premiums or for any assessments under any form or policy. Buying Company reserves the right to request copies of insurance policies.

     

    The insurance policies referred to above shall be primary insurance ahead of any insurance carried by Buying Company with respect to the Agreement. Independent Contractor or Vendor shall furnish written consent of the insurer to the primacy of these policies if requested by Buying Company.

     

    Independent Contractor or Vendor shall provide a certificate of insurance to Buying Company evidencing this coverage prior to performance of the Agreement and annually thereafter, at policy renewal dates throughout the period services/goods are provided by Independent Contractor or Vendor. The certificate shall include a Waiver of Subrogation in favor of Buying Company and should also note any self-insured retention/deductible amounts for each policy.

     

    #295312
    Anonymous
    Guest

    MASTER Comprehensive Services Agreement Insurance clause.

    Limitation of Liability; Insurance.  

     

    (a)  IN NO EVENT SHALL PROVIDER BE LIABLE FOR ANY INCIDENTAL, CONSEQUENTIAL, SPECIAL, EXEMPLARY OR INDIRECT DAMAGES, OR LOST BUSINESS PROFITS OR LOSS OF DATA (EXCEPT TO THE EXTENT ARISING FROM THE NEGLIGENCE OR WILLFUL MISCONDUCT OF PROVIDER, ITS EMPLOYEES OR AGENTS) ARISING OUT OF THIS AGREEMENT OR ANY SERVICES, DELIVERABLES OR WORK PRODUCT EVEN IF PROVIDER HAS BEEN ADVISED OF THE POSSIBILITIES OF SUCH DAMAGES.  IN NO EVENT WILL [____________________________________________________] BE LIABLE TO PROVIDER FOR ANY INCIDENTAL, CONSEQUENTIAL, SPECIAL, EXEMPLARY OR INDIRECT DAMAGES OR LOST BUSINESS PROFITS, EVEN IF [____________________________________________________] HAS BEEN ADVISED OF THE POSSIBILITIES OF SUCH DAMAGES.

     

    (b) A PARTY’S TOTAL AGGREGATE LIABILITY UNDER THIS AGREEMENT, INCLUDING IN CONNECTION WITH ANY SERVICES, DELIVERABLES OR WORK PRODUCT PROVIDED BY PROVIDER, SHALL BE LIMITED TO THE FEES THERETOFORE PAID BY [____________________________________________________] TO PROVIDER UNDER THIS AGREEMENT.  

     

    (c) THE FOREGOING LIMITATIONS DO NOT APPLY TO THIRD PARTY CLAIMS ARISING OR RESULTING FROM PROVIDER’S BREACHES OF SECTION 6 (CONFIDENTIALITY) OR THIRD PARTY INDEMNITY OBLIGATIONS.

     

    (d)  At all times during the term of this Agreement, Provider shall obtain and maintain in effect, at its sole expense, the following insurance coverage: 

     

    (i) Workers’ compensation insurance, including coverage under the applicable law of the state(s) where the Services will be provided. Coverage shall be provided for all employees of Provider. Provider shall also cause its [____________________________________________________] -approved subcontractors to carry workers’ compensation coverage for its employees. Provider shall defend, indemnify and hold [____________________________________________________] harmless for workers’ compensation claims brought against [____________________________________________________] by employees, subcontractors, independent contractors or agents of Provider, including any Personnel. 

     

    (ii) Employers’ Liability Insurance (typically Coverage B of a workers’ compensation policy) with limits of $1,000,000 each accident for bodily injury by accident, $1,000,000 policy limit for bodily injury by disease and $1,000,000 each employee for bodily injury by disease. Provider shall also cause its subcontractors to carry Employers’ Liability Insurance for subcontractors’ employees. Provider shall defend, indemnify and hold [____________________________________________________] harmless for employers’ liability claims brought against [____________________________________________________] by Personnel, employees, subcontractors, independent contractors or agents of the Provider. 

     

    (iii)  General Liability Insurance on a per occurrence basis, which shall be endorsed to include [____________________________________________________] as additional insured. Limits shall be $2,000,000 per occurrence for bodily injury or property damage, and $4,000,000 annual policy aggregate. Coverage shall include those perils generally associated with a “Commercial General Liability Policy,” and specifically include contractual liability coverage for liability assumed by Provider under this Agreement. Provider shall also cause its subcontractors to carry similar general liability insurance or Provider’s insurance shall extend to its subcontractors, independent contractors and agents. A copy of the Certificate of Insurance shall be provided to [____________________________________________________] and is attached to this agreement as Exhibit A.

     

    (iv) Automobile Liability Insurance on a per occurrence basis, which shall be endorsed to include [____________________________________________________] as an additional insured. Limits shall be $1,000,000 per occurrence combined single limit or $1,000,000 per occurrence for bodily injury and $500,000 per occurrence for property damage. Coverage shall include liability assumed by Provider under this Agreement.  A copy of the Certificate of Insurance shall be provided to [____________________________________________________] and is attached to this agreement as Exhibit A.

     

    (v) Professional Liability (Errors and Omissions) Insurance with a limit of $5,000,000 per claim and annual aggregate, providing coverage for errors and/or omissions by Provider while undertaking to perform Services under this Agreement, including Network Security and Privacy coverage.

     

    (vi)   Pollution Liability insurance with a limit of $10,000,000 per claim and annual aggregate, providing coverage for errors and/or omissions by Provider while undertaking to perform Services related to Waste Handling, Landfill, e-scrap processing and/or universal waste handling inclusive of transport of the same.

     

    (e)  Provider hereby waives, for itself and its Affiliates, right of recovery, and agrees that no third party shall have any right of recovery by way of subrogation, assignment or otherwise, against [____________________________________________________], its Affiliates and respective agents, directors, officers, servants and employees with regard to losses or claims to the extent such losses or claims are insured against or required to be insured against under this Agreement.  Such waiver shall apply regardless of whether the loss or claim is caused in whole or in part by acts or omissions of [____________________________________________________], and regardless whether Provider actually maintains a third party insurance policy against, or elects to self-insure, all or any portion of the risks insured against or required to be insured against under this Agreement.

     

    With regard to each of the provisions in this Section 9, Provider’s insurance shall: 

     

    (i) Be underwritten by a licensed insurer with an “A” rating or better or as otherwise approved by [____________________________________________________]; 

     

    (ii) Be primary to any insurance purchased or maintained by [____________________________________________________];

     

    (iii) Include [____________________________________________________] as an additional insured for items 9(d)(ii), (iii), (iv) and (v); and

     

    (iv)Be evidenced by a certificate of insurance (containing an original signature by one duly authorized to certify coverage) providing that such insurance cannot be canceled, non-renewed or materially altered without 30 days’ advance written notice by certified mail to [____________________________________________________] at the following address: 

     

    [____________________________________________________] 

     

    At [__________________________________________________]

     

    The foregoing policy limits do not in any way limit Provider’s liability under this Agreement.

     

    Master Purchasing Agreement. Insurance Clause

    1.Insurance 

    Without prejudice to the Supplier’s obligations and liabilities pursuant to this agreement, the Supplier shall effect and maintain in force for the duration of this agreement and for a period of six years thereafter, with reputable and substantial insurers, such policies of insurance as are sufficient for a business of the Supplier’s type and to cover all potential liability of the Supplier under this agreement, including professional indemnity insurance, product liability insurance and public liability insurance, and shall, on [_______________]’s request, produce both the insurance certificate giving details of cover and the receipt for the current year’s premium in respect of each insurance.

     

    Alternative limits for disadvantaged business enterprises may be adjusted based on provider revenue and scope of work or less.  Limits for each clause, as applicable, may be reduced to as low as $1,000,000 if such limits are approved by the Company’s Risk Management team.

     

    #295313
    Anonymous
    Guest

    19.Liability Insurance.  Prior to starting any Services, Supplier and Supplier’s subcontractors of any tier shall secure and continuously carry insurance meeting the requirements set forth in Exhibit B of the Agreement and provide COMPANY NAME with evidence of such insurance.  Supplier agrees to promptly provide evidence of insurance required under this Section 19 (Liability Insurance) at any time during the term of the Agreement upon request by COMPANY NAME or a third party engaged by COMPANY NAME to manage and administer the insurance requirements under this Section 19 (Liability Insurance), and to pay any fees charged by such third party for participation in its supplier qualification program.  

    EXHIBIT B

     

    CONTRACTOR INSURANCE REQUIREMENTS

     

     

    1.Acceptable Insurers.  All insurance required herein must be obtained from insurers duly authorized to do business in Oregon and which maintain a minimum financial strength rating of “A- VIII” by the A. M. Best Key Rating Guide.

     

    2.Required Insurance and Minimum Limits.  During the term of this Agreement, Contractor must maintain, at its sole expense, the following insurance coverage: 

     

    A.Workers’ Compensation and Employer’s Liability Insurance

     

    i.Scope.  Workers’ Compensation and Employer’s Liability to cover claims under applicable State or Federal workers’ compensation laws.  Coverage must include Employer’s Liability to cover claims for injury, disease or death of employees which, for any reason, may not fall within the provisions of the applicable workers’ compensation law.

     

    ii.Minimum Required Limit.

    Workers’ Compensation:Statutory

    Employer’s Liability:  $2,000,000 each accident, bodily injury by accident

    $2,000,000 each employee, bodily injury by disease

    $2,000,000 policy limit, bodily injury by disease

     

    iii.Navigable Waters.  If any Work or Services under this Agreement involves work in, over or alongside any navigable waters, then Contractor’s workers’ compensation coverage must cover liability under U.S. Longshoremen and Harbor Workers’ Compensation Act, The Jones Act, Maritime Employers Liability and any other coverage required under Federal or State laws pertaining to workers in, over or alongside navigable waters.

     

    iv.Waiver of Subrogation.  To the fullest extent permitted by law, Contractor shall cause its insurer to waive all rights to recover any payments made from COMPANY NAME, its affiliates, and their respective officers, directors, agents and employees.

     

    B.Commercial General Liability Insurance

     

    i.Scope.  Commercial General Liability Insurance written on an occurrence form and must cover liability arising from premises, operations, independent contractors, products-completed operations, personal and advertising injury, and liability assumed under an insured contract (including the tort liability of another assumed in a business contract). If any Work or Services under this Agreement involves or requires blasting, explosive conditions, or underground operations, the coverage must not contain any exclusion relative to blasting, explosion, collapse of buildings, or damage to underground structures.  If any Work or Services under this Agreement involves Contractor exercising care, custody or control of COMPANY NAME property, then Contractor must endorse its Commercial General Liability coverage to remove any exclusionary language relative to property damage in Contractor’s care, custody or control, or maintain Property, Inland Marine or other bailee insurance to cover damage to COMPANY NAME’s property in the care, custody or control of Contractor.

     

    ii.Minimum Required Limit.$2,000,000 Each Occurrence

     

    iii.Waiver of Subrogation.  To the fullest extent permitted by law, Contractor shall cause its insurer to waive all rights to recover any payments made from COMPANY NAME, its affiliates, and their respective officers, directors, agents and employees. 

     

    iv.Additional Insured.  To the fullest extent permitted by law, the insurance must include COMPANY NAME, its affiliates, and their respective officers, directors, agents and employees as additional insureds.  This insurance must apply as primary insurance without any contribution from any other insurance afforded to or self-insurance maintained by such additional insured.  There must not be any endorsement or modification of this insurance to make it excess over any other insurance available to such additional insured.

     

    v.Completed Operations.  Contractor must purchase completed operations coverage for a period of two (2) years after termination or expiration of this Agreement.

     

    C.Automobile Liability Insurance 

     

    i.Scope.  Automobile Liability insurance to cover liability arising out of any auto (including owned, hired, and non-owned autos) used in connection with the Work or Services under this Agreement.

     

    ii.Minimum Required Limit.$2,000,000 Each Accident

     

    iii.Pollution.  If Contractor is transporting chemicals, hazardous materials, or similar pollutants, then the Automobile Liability Insurance must include pollution liability coverage at least as broad as the coverage provided under the ISO endorsement CA 99 48  “Pollution Liability—Broadened Coverage For Covered Autos”.

     

    iv.Waiver of Subrogation.  To the fullest extent permitted by law, Contractor shall cause its insurer to waive all rights to recover any payments made from COMPANY NAME, its affiliates, and their respective officers, directors, agents and employees. 

     

    vi.Additional Insured.  To the fullest extent permitted by law, the insurance must include COMPANY NAME, its affiliates, and their respective officers, directors, agents and employees as additional insureds.  This insurance must apply as primary insurance without any contribution from any other insurance afforded to or self-insurance maintained by such additional insured.  There must not be any endorsement or modification of the insurance to make it excess over any other insurance available to such additional insured.

     

    D.Professional Liability Insurance (Errors and Omission Insurance)

     

    i.Scope.  If any of the Work or Services under this Agreement involves the rendering of professional services then Contractor must obtain and maintain Professional Liability (Errors and Omissions) insurance to cover claims arising from Contractor’s acts, errors or omissions.  Contractor will require Professional Liability (Errors and Omissions) insurance in the same amounts from any and all third parties Contractor utilizes in performing its design responsibilities under this Agreement. 

     

    ii.Minimum Required Limit.  $1,000,000 Per Claim

     

    iii.Extended Reporting Period.  The insurance must contain an extended reporting period of five (5) years. 

     

     

    E.Pollution Legal Liability

     

    i.Scope.  If any of the Work under this Agreement involves cleanup, removal, storage, or otherwise handling of hazardous or toxic chemicals, materials, substances, or any other pollutants,  Contractor shall provide at its expense  Pollution Legal Liability Insurance appropriate to cover such activities against the risk of bodily injury and property damage.  Such policy must be endorsed to specifically provide coverage for Work performed under this Agreement and must extend to all Subcontractors engaged in cleanup, removal, storage, or otherwise handling of hazardous or toxic chemicals, materials, substances, or any other pollutants.

     

    ii.Minimum Required Limit.$5,000,000 Per Claim

     

    iii.Additional Insured.  To the fullest extent permitted by law, the insurance must include COMPANY NAME, its affiliates, and their respective officers, directors, agents and employees as additional insureds.  This insurance must apply as primary insurance without any contribution from any other insurance afforded to or self-insurance maintained by such additional insured.  There must not be any endorsement or modification of the insurance to make it excess over any other insurance available to such additional insured.

     

    iv.Waiver of Subrogation.  To the fullest extent permitted by law, Contractor shall cause its insurer to waive all rights to recover any payments made from COMPANY NAME, its affiliates, and their respective officers, directors, agents and employees.

     

    F.Unmanned Aircraft Systems Liability

     

    i.Scope: PRIOR TO USING AN UNMANNED AIRCRAFT SYSTEM OF ANY KIND IN PERFORMING THE WORK UNDER THIS AGREEMENT, CONTRACTOR SHALL NOTIFY COMPANY NAME AND OBTAIN ITS PRIOR WRITTEN CONSENT. If an Unmanned Aircraft System is to be used in performing the Work under this Agreement, Unmanned Aircraft Systems Liability insurance coverage appropriate to cover such activities against the risk of bodily injury, trespass, invasion of privacy and property damage.

     

    ii.Minimum Required Limit:$5,000,000 Each Occurrence

     

    iii.Additional Insured.  To the fullest extent permitted by law, the insurance must include COMPANY NAME, its affiliates, and their respective officers, directors, agents and employees as additional insureds.  This insurance must apply as primary insurance without any contribution from any other insurance afforded to or self-insurance maintained by such additional insured.  There must not be any endorsement or modification of the insurance to make it excess over any other insurance available to such additional insured.

     

     

    G.Aircraft Liability

     

    i.Scope:  PRIOR TO USING AN AIRCRAFT OF ANY KIND IN PERFORMING THE WORK UNDER THIS AGREEMENT, CONTRACTOR SHALL NOTIFY COMPANY NAME AND OBTAIN ITS PRIOR WRITTEN CONSENT. If an aircraft is to be used in performing the Work under this Agreement, Aircraft Liability insurance covering fixed wing and rotorcraft aircraft whether owned, hired or non-owned.

     

    ii.Minimum Required Limit:$10,000,000 Each Occurrence

     

    iii.Additional Insured.  To the fullest extent permitted by law, the insurance must include COMPANY NAME, its affiliates, and their respective officers, directors, agents and employees as additional insureds.  This insurance must apply as primary insurance without any contribution from any other insurance afforded to or self-insurance maintained by such additional insured.  There must not be any endorsement or modification of the insurance to make it excess over any other insurance available to such additional insured.

     

    H.Network Security & Privacy Liability

     

    i.Scope:  If any of the Work or Services under this Agreement involves the rendering of IT services including, but not limited to software, software or hardware or systems development or consulting services; internet/application services (e.g., web hosting); providing content; connected to COMPANY NAME network(s); or if Contractor in any way collects, obtains, maintains or in any way uses COMPANY NAME customer information, then Contractor shall maintain Network Security & Privacy Liability, including Technology Errors & Omissions.

     

    ii.Minimum Required Limit:$5,000,000 Each Claim

     

    I.Cargo/Transit

     

    i.Scope:  If any of the Work or Services under this Agreement involves the transportation of COMPANY NAME property, by any form of conveyance, Contractor shall maintain Cargo and/or Transit coverage for the duration of such transportation.

     

    ii.Minimum Required Limit:Full replacement value of the shipment

     

    3.Excess or Umbrella Insurance.  The required minimum limits may be met through any combination of primary and excess insurance policies.

     

     

    4.Certificates of Insurance.  Prior to commencement of any Work or Services under this Agreement, Contractor must furnish COMPANY NAME with a Certificate of Insurance evidencing compliance with these requirements.  Without penalty or default, COMPANY NAME has the right, but not the obligation, to prohibit commencement of any Work or Services until such Certificate of Insurance or other evidence satisfactory to COMPANY NAME is received and approved by COMPANY NAME.  The Certificate of Insurance must list as the certificate holder:

     

     

     

    COMPANY NAME

    STREET ADDRESS

    CITY, STATE ZIP

     

    5.No Waiver.  COMPANY NAME’s failure to demand the Certificate of Insurance or to identify a deficiency from the Certificate of Insurance or other evidence provided will not be deemed a waiver of COMPANY NAME’s rights or Contractor’s obligations.  Furthermore, these insurance requirements must not be construed in any manner as waiving, restricting or limiting COMPANY NAME’s rights or Contractor’s obligations under this Agreement.

     

    6.Notice of Cancellation.  No insurance policy may be canceled or materially modified unless Contractor or insurer(s) provide at least thirty (30) days prior written notice to COMPANY NAME.  

     

    7.Failure to Maintain Required Insurance.  If at any time during the term of this Agreement Contractors fails to maintain any required insurance, COMPANY NAME may, at its sole discretion, either suspend the Work or Services or terminate this Agreement.

     

    8.Contractor Responsible for Deductibles or Retentions.  With respect to any insurance required herein, Contractor must bear all costs of all deductibles or Self-Insured Retentions.

     

    9.No Representation of Coverage Adequacy.  COMPANY NAME does not represent that coverage and limits required herein will be adequate to protect Contractor.  Contractor remains responsible for any liability not paid by insurance.

     

    10.Contractor’s Property.  Contractor is responsible for any loss or damage to its property, however caused, and any insurance covering such property will be at Contractors expense and Contractor shall cause its insurer to waive all rights to recover any payments made from COMPANY NAME, its affiliates, and their respective officers, directors, agents and employees. 

     

    11.No Violation of Insurance Policies.  Contractor must not knowingly violate or knowingly permit any violation of any warranties, representations, declarations or conditions contained in the policies of insurance.

     

    12.No Claims.  As of the execution date of this Agreement, Contractor is not aware of any claims or potential claims which have been made, filed or threatened against any of the insurance required herein.

     

    13.Other Insurance.  If there is any material change to the nature or scope of the Work or Services under this Agreement, COMPANY NAME may require Contractor to obtain and maintain additional insurance.

     

    14.Subcontractors.  If subcontractors or third parties are used in the performance of any Work or Services, then Contractor must cause each of its subcontractors or third parties to comply with the same insurance requirements imposed on Contractor herein.  If requested by COMPANY NAME, Contractor must furnish certificates of insurance evidencing compliance with these requirements for each subcontractor or third party.

     

    15.Primary Insurance. The insurance required of Contractor under this Exhibit shall be primary and may not seek contribution from any insurance or self-insurance maintained by COMPANY NAME.

     

    16.Contractor’s Builder’s All Risk Insurance  If required for any of the Work or Services under this Agreement.

     

    16.1Scope. The Contractor shall procure and maintain in effect or cause to be maintained, to protect the interests of the Owner, the Contractor, and subcontractors of any tier, Builder’s Risk Insurance coverage provided by insurers properly authorized to provide insurance in the jurisdiction(s) where the Work will be performed and rated at least A-VII by the AM Best Insurance Report or rated at similar levels by other internationally recognized insurance rating experts. The Builder’s Risk policy shall at a minimum meet the following requirements:

     

    16.2“All-Risk” Coverage. The policy shall cover all equipment, materials and supplies, including temporary structures and false works (but excluding Contractor’s and subcontractors’ equipment) in connection with the Work at the site and shall be in an amount equivalent to one hundred percent (100%) of the full replacement cost insuring against all risk of direct physical loss. Such coverage shall cover loss or damages caused by or resulting from, including but not limited to, earth movement, flood, terrorism, equipment and mechanical breakdown, transit, and all operational and performance testing until the Substantial Completion Date.  The Policy may have sublimits, exclusions and terms and conditions reasonably acceptable to Owner.  Such coverage will include “soft cost cover” in an amount to be elected by Owner including, without limitation, attorneys’ fees, engineering and other consulting costs, and permit fees, and providing 

     

     

    (i)coverage for removal of debris and insuring the buildings, structures, boiler and machinery, equipment, facilities, fixtures and other properties constituting a part of the Facility;

    (ii)inland transit coverage, with sublimits sufficient to insure the full replacement value of the Equipment; 

    (iii)off-site storage (including any additional laydown areas) coverage with sublimits sufficient to insure the full replacement value of any property or equipment not stored on the Project Site, and 

    (iv)coverage for damage of property of every description used or to be used in, as part of, or incidental to, the completion of the Work (excluding Contractor’s or subcontractors’ equipment).  The policy is to insure gas, electrical, transmission lines and equipment to the extent Owner has an insurable interest as covered by the Work Scope.  The policy will be endorsed to provide either an agreed amount clause or waiver of coinsurance, and shall include a waiver of subrogation in favor of Owner and all additional insureds/loss payees and include a non-vitiation clause.  ;

    (v)the minimum design/defects coverage shall be LEG 2

     

    16.3Deductibles. Consistent with Article 1.7 Risk of Loss under the Agreement, Contractor shall be responsible for and assume the cost of such deductibles in the event of loss or damage insured under this policy.

     

    16.4Time of Coverage. The policy shall be in effect from the planned start of any on-site activity through the Substantial Completion of the project and the end of the Contractor’s obligations and be non-cancelable (except for non-payment of premium).

     

    16.5Insured Parties. The policy shall include as named insured for their onsite activities,  Owner, Contractor, subcontractors of any tier, and any additional parties to the Contract and, any Affiliate of any Party to the Contract that is performing work in connection with the Contract,; and the policy shall also include a waiver of subrogation in favor of all named insured parties.

     

    16.6Evidence of Coverage. Contractor shall provide the Owner a full copy of the Builders Risk policy at least thirty (30) days prior to the scheduled start of any work on the Project Site.  Owner shall be permitted to examine the insurance proposals or summaries with respect to Insurance for Works which shall include sums insured, loss limits, deductible, details of cover, exclusions or conditions, and a list of security (each insurance company’ participation in the insurance policy required for this Project only).

     

     

     

     

    #295314
    Anonymous
    Guest

    Type of Coverage

    Amount

    Automobile liability covering all vehicles owned, non-owned, hired and leased

    Not less than $1,000,000.00 per claim (combined single limit for bodily injury and property damage)

    Commercial general liability insuring against bodily injury, property damage, premises liability, contractors’ completed operations, and contractual liability (including covering Supplier’s indemnification obligations contained herein)

    A combined single limit of not less than $1,000,000.00 per claim

    Professional liability and errors and omissions insurance

    Not less than $5,000,000.00 per claim

    Umbrella coverage (including commercial general liability coverage)

    Not less than $ 5,000,000 over the automobile liability and commercial general liability coverages set forth above

    Workers Compensation and Employer’s Liability coverage.

    Statutory limits. Employer’s Liability coverage in an amount not less than $1,000,000.00 per occurrence

    Technology Errors and Omissions Liability (including coverage for Electronic Media Activities, Network Operations Security Liability, Privacy Liability and Miscellaneous Professional Liability)

    Not less than USD $,5,000,000 per claim and USD $5,000,000 in the aggregate

    Crime Coverage (Employee Dishonesty and Computer Fraud), including an endorsement and/or coverage amendment for 3rd Party Coverage (Client Coverage)

    Not less than USD $5,000,000 per each and every event

Viewing 15 posts - 1 through 15 (of 28 total)
  • You must be logged in to reply to this topic.