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Attachment “D”
Insurance Provisions
Sample Project
Version 1.0
OCIP with WC
Prior to commencement of Work and within five (5) days of execution of the Agreement with the Contractor,
Subcontractor shall enroll and maintain enrollment in the Owner Controlled Insurance Program (OCIP). In
addition, Subcontractor shall provide Contractor and Owner with evidence of insurance coverage described below
which shall be maintained throughout the life of this agreement and the additional time periods specified below:
A.
A certificate of insurance issued by the Owner Controlled Insurance Program (OCIP) Administrator
evidencing that Subcontractor has been enrolled in the OCIP for this project if Subcontractor is eligible. If
Subcontractor is not eligible, a certificate of insurance evidencing the same coverage in the same limits as
required by the OCIP which names the Owner, the Architect, the OCIP Administrator and their respective
officers, agents and employees, and the Contractor and its affiliates and their directors, officers, and
employees as additional insureds.
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The Contract Price of this Agreement was determined after a mutually agreeable credit for the OCIP was
factored into the Contract Price in lieu of the Subcontractor providing its own insurance for the types of risks
covered by the OCIP. Subcontractor shall exclude the cost of the OCIP from all change order proposals
submitted by this Subcontractor or by any of its eligible sub-subcontractors. Subcontractor shall be
responsible to pay any deductibles for claims associated with their firm as prescribed by the OCIP.
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Subcontractor agrees that the Contract Price will be lowered after its enrollment into the OCIP in lieu of
providing its own insurance for the types of risks covered by the OCIP. Subcontractor shall promptly provide
the Program Administrator with sufficient documentation necessary to determine the appropriate credit
(“OCIP Credit”) due Contractor for the cost of insurance provided by the OCIP. Should Subcontractor fail to
provide such documentation, the amount of the OCIP Credit shall be established at three percent of the
Contract Price. Contractor shall issue a deductive Subcontract Change Order for the amount of the OCIP
Credit. Subcontractor shall exclude the cost of the OCIP from all change order proposals submitted by this
Subcontractor or by any of its eligible sub-subcontractors. Subcontractor shall be responsible to pay any
deductibles for claims associated with their firm as prescribed by the OCIP.
B.
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In addition to enrolling in the Program described above, Subcontractor and its sub-subcontractors
shall also provide the following:
Within five (5) days from the date of this Agreement and prior to commencing work on this project,
Subcontractor shall provide Contractor with evidence of the insurance coverage described below which
shall be maintained throughout the entire duration of the Project. Evidence shall be furnished by way of a
standard Accord form 25-S Certificate of Insurance including copies of all endorsements and exclusions.
Additionally, separate endorsements for waiver of subrogation and additional insured shall be furnished as
described below. The Certificate of Insurance shall provide for a minimum of 30-day advance written notice
to Contractor prior to the revision or cancellation of any policy. Subcontractor shall require any lower tiered
subcontract agreements to provide insurance coverage in like forms, amounts and additional insurance
requirements to those noted herein. Subcontractor acknowledges that its failure to provide Contractor with
fully conforming insurance certifications, endorsements, and exclusions shall serve as grounds for
Contractor to withhold payment pending the receipt of satisfactory evidence of conformance to these
requirements.
1. Workers’ Compensation Insurance for project related operations occurring away from the project
site, reflecting statutory limits (Part A) and $1,000,000 each accident; $1,000,000 disease-policy limit;
$1,000,000 disease-each employee as respects Employer’s Liability (Part B).
a.
Waiver of Subrogation. The Insurance Company agrees to waive all rights of subrogation against
the Owner, the Architect and the Contractor and its affiliates and their directors, officers, and
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Attachment “D”
Insurance Provisions
Sample Project
Version 1.0
OCIP with WC
employees for losses paid under the terms of this policy which arise from work performed by
Subcontractor for the Owner and/or Contractor.
2. Commercial General Liability insurance (including contractual liability) for work performed away from
the project site, with policy Limits of Liability of not less than $1,000,000 Each Occurrence; $2,000,000
General Aggregate; and $2,000,000 Products/Completed Operations. The insurance or policies shall
contain the following provisions:
a.
A naming of the Owner, the Architect and the Contractor and its affiliates and their directors,
officers, and employees as additional insureds by use of Standard Insurance Service Office
Form CG20100704 and CG20370704 or their equivalent which provide additional insured
coverage for both ongoing operations and completed operations. Any additional insured
endorsement that excludes injury or damage caused by the additional insured’s passive
negligence is unacceptable.
b.
A separate provision that the insurance afforded to Owner, Contractor, and other additional
insureds (as outlined in 2.a above) is primary insurance and that any other insurance maintained
by the additional insureds is excess and not contributing insurance with the insurance provided by
the Subcontractor.
c.
A waiver of subrogation stating that Subcontractor’s insurer agrees to waive all rights of
subrogation against Owner and Contractor, and their affiliates, directors, officers, and employees
for losses paid under the terms of this policy which arise from work performed by Subcontractor
for Owner and/or Contractor.
d.
Coverage for the following, which must be on an OCCURRENCE basis:
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i.
ii.
iii.
iv.
v.
vi.
vii.
Premises and Operations Liability.
Contractual Liability insuring the Obligations assumed by the Subcontractor in this
Subcontract.
Completed Operations and Products Liability.
Broad Form Property Damage Liability.
Liability which Subcontractor may incur as a result of the Operations, Acts, or
Omissions of its Subcontractors.
XCU Coverage for Explosion, Collapse, and Underground Hazards.
Subsidence Coverage
e.
Completed Operations Insurance shall remain in effect for a minimum of ten (10) years after
substantial completion of the Project.
f.
Subcontractor shall provide proof of insurance by an insurance company with a minimum rated of
“A-VIII”, as rated by the current edition of Best’s Key Rating Guide, published by A.M. Best Co.
g.
Severability of Interest. The insurance afforded by this policy applies separately to each insured
who is seeking coverage or against whom a claim is made or a suit is brought, except with
respect to the Company’s limit of liability.
h.
Deductibles shall not exceed an amount of $ 50,000 and shall be clearly declared on
Subcontractor’s Insurance Certificate.
3. Automobile Liability limits of not less than $1,000,000 per accident combined single limit Bodily Injury
and Property Damage, including owned, hired and non-owned automobiles.
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Attachment “D”
Insurance Provisions
Sample Project
Version 1.0
OCIP with WC
4. Umbrella Liability limits of not less than $2,000,000 Each Occurrence and $2,000,000 General
Aggregate.
5. Subcontractor’s Equipment – Subcontractor is responsible for its construction trailers, machinery, tools,
equipment and other similar property. The policy will contain a waiver of subrogation endorsement in
favor of Contractor.
6. Professional Liability – To the extent any portion of Subcontractor’s scope of services or work involves
Design/Build responsibility or otherwise requires the services of a licensed professional, Subcontractor
shall utilize properly licensed professionals to furnish proper designs, calculations, drawings, services,
etc. Further, Subcontractor shall furnish Contractor with evidence of a professional liability insurance
policy which insures the entity providing the professional service with a minimum limit of $1,000,000
applicable to this project from an insurance company and with policy conditions acceptable to
Contractor. Deductibles shall not exceed an amount of $25,000 and shall clearly be declared on
Subcontractor’s Certificate of Insurance.
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7. Aircraft Liability and Crane Liability – Should Subcontractor’s scope of services or work involve the use
of aircraft or cranes, Subcontractor shall provide Contractor with proof of Liability insurance from the
entity providing the aircraft or crane services which shall name the Owner, the Architect and the
Contractor and its affiliates and their directors, officers, and employees as additional insureds.
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8. Pollution Liability – Trades whose work involves the removal and/or treatment of hazardous materials
shall provide and maintain Contractor’s Pollution Liability insurance with coverage’s specifically
scheduled to conform to the type(s) of work to be performed under the agreement. Limits for such work
shall be approved by Contractor and shall be based on the nature of the work and shall cover all
reasonable levels of risks involved.
C.
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Builders Risk Insurance
Builders Risk insurance for this project may be provided by others. Subcontractor shall be responsible to
pay deductible amounts as stated in the project’s Builders Risk policy for any claim arising from or directly
caused by Subcontractor’s work or acts or omissions of any other entity or party for whom Subcontractor
may be responsible for.
End of Attachment D
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