Contract, Certificate and Policy Terms Index

 

Insurance Certificate for Contractors and Service Providers: suggested content

 

Appropriate coverage as detailed in contract is to be specified in the current Certificate

Certificate should include language that states:                   (See example attached)

1. Coverage will not be materially altered, cancelled or allowed to expire without 30 days              written notice to you. (Desirable but some ins companies may not be able or willing)

2.  If any coverage is subject to or is in excess of any deductibles or self insured retention,    the deductibles and/or self insured retention must be stated on the certificate.

3. Deductibles and self insured retention are the sole responsibility of the Con./Ser Pro.

 

Additional wording requirements for the certificate:

Coverage shall include forms and endorsements for the following; 

1. Blanket additional insured-owners, lessees or contractors-with products/completed            operations endorsement

2. CG2010 (1985 edition if possible) Blanket additional insured -                                                      Owners, Lessees or Contractors, (or extension endorsement requiring same).  May also        use CG2037 if properly endorsed and coordinated in contract terms.

3. Auto policy shall name owner/property manager as an additional insured                                                 where required by contractaddl insd auto

4. Waiver or Transfer of Rights of Recovery against others to us (Waiver of Subro)                                     where required by contract. (GL & Auto) subro waiver.

5. Both the Gl and Auto policies shall contain endorsement wording make them "Primary                  and Noncontributory".

6. Umbrella policy shall be "follow form.

 

Contract Agreement terms:

All Con./Ser Pro shall be required to protect the Owner/Prop Mgr in the sub-contract.

Suggested terms will vary by jurisdiction. Full contract must be reviwed by your attorney.Contract terms

 

Contract should include the following terms:

• The insurance should be written by companies that have a minimum                                      A.M. Best Insurance rating of A- (VII)

• Owner and "other indemnities" shall be additional insured on the general                      liability, Auto, and umbrella policies.

• Other indemnities should be specifically defined in the contract to include:

  • Building owner name, investors, officers, employees, agents, management                    companies, lendors, architects, in addition to specifying any others you                        are obligated to indemnify or protect. 

• Such coverage shall include "completed operations", shall be primary and                              non-contributory and contain a waiver of subrogation

 

Insurance Policies:

 

GL policy terms: Construction work or repairs

* Shall include Products and completed operations coverage for a minimum time

 after completion of the work.Perhaps 12 - 24 months for new construction.

* Shall be written on an occurrence basis and include coverage for:

1.  Per project aggregate; Premises/operations; Employees as insureds;              Explosion, collapse and underground property damage included;

2. Broad form contractual liability; 

3. (3) Products and completed operations; Independent contractors;                         or  Broad form property damage and personal injury.

* Shall provide an endorsement listing owner and contractor/indemnities

 as Additional insured using: 

(1) CG2010 1185 or equivalent (arising from completed operations)

(1a)  CG207 if Completed Operations coverage not included above

(2) CG 20 01 Provide coverage as primary and non-contributory

(3) Should specify minimum Limits as follows:

1,000,000 - Each occurrence -- 2,000,000 aggregate per project

2,000.000 - Products/completed operations aggregate

1,000,000 - Personal and advertising injury

100,000  -   fire damage liability

10,000  -     Medical payments

 

Commercial Auto policy:

*Coverage for all owned, non-owned and hired vehicles (Symbols 1, 8, or 9 depending on the exposure)

* Shall be primary and non-contributory and contain a waiver of subrogation

*Shall provide an endorsement listing owner and other indemnities as Additional

insured using limits as follows:

1,000,000 - Combined single limit or 500,000 BI per person

500,000 property damage per accident

 

Workers Compensation:

*Mandatory for every  Con./Ser Pro who sets foot on the property -NO excluded employees or managers!

*Certificates required for all sub or sub-sub contractors before any work is performed.

* Waiver of subrogation for you, employees and indemnities where permitted by law

 (Generally not in Mo)

* If any employee leasing firms are involved, you will be named as alternate employer on

 those policies.

 

Umbrella and /or Excess requirements for  Con./Ser Pro

* Coverage shall be no more restrictive than your policy

* Per occurrence and aggregate limits of:  1,000,000 and 3,000,000 on high hazard work

 (steel erection, roofing , masonry, lead, asbestos etc.)

* Shall provide an endorsement listing owner and indemnities as Additional insured 

on primary and non-contributory basis.

* Coverage shall be equal to or greater than the requirements in the CGL coverage

 requirements above. 

 

Suggested example of Indemnity provisions to be included in Missouri contracts:

Contractor (Service Provider) shall defend, indemnity and hold harmless, Owner, Architect, Mortgage Holder and their officers, employees, agents and consultants (Indemnified parties) from and against any and all claims, demands, liabilities, actions or causes of action, costs and expenses (including attorney's fees and expenses incurred for the defense of Indemnified Parties. The parties acknowledge that the indemnification provided by Contractor (Service Provider) is limited to the amount of the commercial general liability insurance required by the subcontract and the policy limits are specifically required and obtained  to insure the indemnity obligations required under this subcontract to meet  the requirements of Section 434.100.2(2&8) RSMO. The parties further acknowledge that the cost of the commercial general liability coverage  to insure the indemnity obligations set forth in this subcontract are included in the contract price. 

 

This provision allows the GC to transfer indemnity to the subcontractor in Missouri. Consult your attorney to verify this provision applies to your situation.

 

(Also see sheet 4 for an alternate example of indemnity provisions)