Liability & Insurance

Template 1

Use Template 1 for:

Construction and Public Works Projects using Document 00821.

    • For Construction and Public Works Projects not using Document 00821, use Template 2.
    • For Job Order Contracts using Document 00821, use Template 25.

    Examples: Public Works, Infrastructure, Construction or renovation of buildings/structures.

    Contact Risk Management if…

    The project involves any of the following - Builders Risk may require modification:

    1. Dams, piers, roads, or bridges;
    2. Wastewater treatment facilities;
    3. Standing timber or growing crops;
    4. Extensive installation of landscaping (lawns, trees, shrubs or plants);
    5. Work near a body of water, river, stream or canal;
    6. Work adjacent to the ocean; or
    7. Work located on property that is not owned by either the County, the Sonoma County Water Agency or the Sonoma County Agricultural and Open Space district.
    8. projects with an estimated cost over 2 million.

    Mandatory Contractual Language

    Insurance requirements should be saved and attached to the contract as an exhibit. To ensure the requirements are included as part of your contract, please include the following language within the insurance section of the agreement:

    _______ is required to maintain the insurance specified in Exhibit _____, which is attached hereto and incorporated herein by this reference.

    Consistent Language

    Edit the template to keep the language consistent with your agreement.

    For example: if the template refers to: “Consultant”, but the agreement uses “Contractor”, change all references in the template to “Contractor”. If your agency is not the County (SCAPOSD, Water Agency, Fairgrounds, etc.) substitute the correct terminology for all references to “County”. If the agreement is called “contract”, “license”, “lease”, etc., edit the template to match.

    Download Template

    Contract with pen

    Download Template 1
    (Word: 34 kB)

    Template Assistant

    Contractor - Required Insurance

    The insurance requirements for the contractor and its subcontractors are similar, except for the limits. The limits for subcontractors are shown in the section below labeled "Subcontractors – Required Insurance".

    At or before the date specified in Document 00200 (Instructions to Bidders), Contractor shall furnish to County satisfactory proof that Contractor has obtained the following insurance as specified below.

    County reserves the right to review any and all of the required insurance policies and/or endorsements, but has no obligation to do so. Failure to demand evidence of full compliance with the insurance requirements set forth in this Contract or failure to identify any insurance deficiency shall not relieve Contractor from, nor be construed or deemed a waiver of, its obligation to maintain the required insurance at all times during the performance of this Contract.

    The named insured must match the name of the entity with whom we are contracting. Some policies have several named insureds, but all insureds may not show on the certificate. If there’s no match on the certificate, request a copy of the endorsement showing the full named insured, including the one with whom we are contracting.

    Be sure the name on the agreement is the full legal name of the entity with whom we are contracting and not just a "dba" (doing business as), which is only a fictitious name.

    1. Workers Compensation Insurance & Employers Liability Insurance
      1. Workers Compensation insurance with statutory limits as required by the Labor Code of the State of California.
      2. Employers Liability with minimum limits of $1,000,000 per Accident; $1,000,000 Disease per employee; $1,000,000 Disease per policy.
      3. The policy shall be endorsed to include a written waiver of the insurer’s right to subrogate against County.
        If a Contractor’s employee is injured on the job, the workers compensation insurer will cover the claim. However, if the County is in any way responsible for causing that injury, the insurer will try to recover all or part of its payment from us. This is called subrogation. The insurer cannot recover from us if it has waived its right to subrogate.
      4. Required Evidence of Insurance:
        1. Subrogation waiver endorsement, and
        2. Certificate of Insurance

      If injury occurs to any employee of Contractor, Subcontractor or sub-subcontractor for which the employee, or the employee’s dependents in the event of employee’s death, is entitled to compensation from County under provisions of the Workers Compensation Insurance and Safety Act, as amended, or for which compensation is claimed from County, County may retain out of sums due Contractor under Contract Documents, amount sufficient to cover such compensation, as fixed by the Act, as amended, until such compensation is paid, or until it is determined that no compensation is due. If County is compelled to pay compensation, County may, in its discretion, either deduct and retain from the Contract Sum the amount so paid, or require Contractor to reimburse County.

    2. General Liability Insurance
      1. Commercial General Liability Insurance on a standard occurrence form, no less broad than ISO form CG 00 01.

        ISO (Insurance Services Office) publishes a standard CGL. Some insurers use that specific form; others use their own form with a different numbering system. Any CGL is acceptable as long as the coverage is as broad as the ISO form.

        An occurrence policy responds if the injury or damage takes place during the policy period. It doesn’t matter when the claim is filed.

        A claims-made policy responds if the claim (demand for money) is made during the policy period.

      2. Minimum Limits: The required limits may be provided by a combination of General Liability Insurance and Commercial Excess or Commercial Umbrella Liability Insurance. If Contractor maintains higher limits than the specified minimum limits, County requires and shall be entitled to coverage for the higher limits maintained by Contractor.

        Occurrence limit: the most the insurer will pay for any one accident.

        General Aggregate: the most the company will pay for all claims resulting from damage or injuries that occur before the work is completed, regardless of the number of accidents, injuries, claims or claimants. A policy with no general aggregate is acceptable because there’s no annual cap on the amount the policy will pay.

        Products/Completed Operations Aggregate: the most the insurer will pay for all claims resulting from damage or injuries that occur after the work is completed, regardless of the number of accidents, injuries, claims or claimants.

        A policy with no general aggregate is acceptable because there’s no annual cap on the amount the policy will pay.

        When the General Aggregate applies separately to each project, your project does not share the limit with other projects the contractor does during the policy year. A separate Products / Completed Operations Aggregate is not required for each project because that coverage is not available.

        A Commercial Umbrella or Excess Liability policy provides additional limits which are usually shown on the Certificate of Insurance. The additional limits are added to the General Liability Limits. The combined total of the General Liability Limits and the Umbrella Limits must equal or exceed our minimum requirements.

        1. Projects under $1,000,000: one (1) per Occurrence; $2,000,000 General Aggregate; $2,000,000 Products/Completed Operations Aggregate. The General Aggregate shall apply separately to each Project.
        2. Projects from $1,000,000 - $4,999,999: $2,000,000 per Occurrence; $4,000,000 General Aggregate; $4,000,000 Products/Completed Operations Aggregate. The General Aggregate shall apply separately to each Project.
        3. Projects from $5,000,000 - $9,999,999: $5,000,000 per Occurrence; $5,000,000 General Aggregate; $5,000,000 Products/Completed Operations Aggregate. The General Aggregate shall apply separately to each Project.
        4. Projects $10,000,000 and Over: Minimum Limits: $10,000,000 per Occurrence; $10,000,000 General Aggregate; $10,000,000 Products/Completed Operations Aggregate. The General Aggregate shall apply separately to each Project.
      3. Any deductible or self-insured retention shall be shown on the Certificate of Insurance. If the deductible or self-insured retention exceeds $25,000 it must be approved in advance by County. Contractor is responsible for any deductible or self-insured retention and shall fund it upon County’s written request, regardless of whether Contractor has a claim against the insurance or is named as a party in any action involving the County.

        Contact Risk Management (Outlook: 139 kB) if the retention or deductible exceeds $25,000. We want to verify that the party with whom we are contracting has sufficient assets to fund a large retention or deductible. A waiver is not needed.

        There is no specific field on the Certificate of Insurance for a General Liability deductible or retention.

      4. Insurance shall be maintained for the entire period of the Work including any warranty period. Completed operations insurance shall be maintained after the end of the warranty period for the additional periods specified below:

        Because injury or damage resulting from the contractor’s work can occur after the project is complete, the insurance must continue after the work is done. Occurrence policies must be in force when the injury or damage happens, not when the faulty work is done.

        You cannot receive evidence that coverage will be continued after the work is complete because policies are issued for only one year. When reviewing the insurance prior to the start of work, you can verify only that the insurance is currently in force.

        1. Projects under $1,000,000: one (1) year after the end of the warranty period.
        2. Projects from $1,000,000 - $4,999,999: two (2) years after the end of the warranty period.
        3. Projects from $5,000,000 - $9,999,999: three (3) years after the end of the warranty period.
        4. Projects $10,000,000 and Over: five (5) years after the end of the warranty period.
      5. [insert exact name of additional insured] shall be endorsed as additional insureds for liability arising out of ongoing and completed operations by or on behalf of the Contractor in the performance of the Contract Documents. Additional insured status shall continue for the periods specified in Section 2.d. above.

        Ongoing operations refers to injuries and damage that happen while the work is in progress. Completed operations refers to injuries and damage that happen after the work is complete. We need to be an additional insured for both exposures. Most insurers issue two separate endorsements; a few issue their own form which includes both in the same endorsement.

        If the endorsement refers to "your work" and does not exclude completed operations, it is acceptable because "your work" includes both ongoing and completed operations. If you’re not sure, attach the questionable endorsement to a HelpRequest(Outlook: 139 kB) and submit it for review.

        As noted above, you cannot receive evidence in advance that coverage will be continued after the work is complete.

        We must get a copy of the endorsement or section of the policy that makes us an additional insured. A statement on the Certificate of Insurance is not sufficient because an insurance company is bound by its policy and endorsements, not by the Certificate.

        Additional insured endorsements which do not include our name are acceptable if they have language granting additional insured status to parties for whom our vendor (or consultant, contractor, permittee, licensee, tenant, etc.) is required to provide additional insured status under a contract or agreement.

        Submit a HelpRequest (Outlook: 139 kB) if you’re not sure the endorsement is acceptable.

      6. The additional insured endorsement for completed operations shall not be restricted to work performed during the current policy period.
        Completed operations claims occur after the work is completed, often after the policy has been renewed. Standard additional insured endorsements for completed operations only require that the injury or damage occur during the policy period. It doesn’t matter that the work was done during a previous policy period; the important date is the date on which the injury or damage occurs. Some insurers issue limited completed operations coverage for additional insureds which responds only if the was done during the current policy period and the injury/damage occurs during the current policy period. We do not accept such restricted additional insured endorsements. If you suspect that an additional insured endorsement has this restriction, please submit it for review on a HelpRequest (Outlook: 139 kB).
      7. [insert name of Funding Source and/or lender] shall be endorsed as additional insureds for liability arising out of Contractor’s ongoing operations (ISO endorsement CG 20 26, Additional Insured – Designated Person or Organization, or Equivalent).

        We must get a copy of the endorsement or section of the policy that makes the funding source or lender an additional insured. A statement on the Certificate of Insurance is not sufficient because an insurance company is bound by its policy and endorsements, not by the Certificate. CG 20 26 - Sample Form 7

        Delete this item if there is no outside funding source or lender. It should also be deleted if the outside funding source or lender is not required to be an additional insured on the contractor’s policy.

      8. [insert name of Property Owner, Licensor and/or Grantor of Easement] shall be endorsed as additional insureds for liability arising out of Contractor’s ongoing operations (ISO endorsement CG 20 26, Additional Insured – Designated Person or Organization, or Equivalent).

        We must get a copy of the endorsement or section of the policy that makes the property owner, licensor and/or grantor of easement an additional insured. A statement on the Certificate of Insurance is not sufficient because an insurance company is bound by its policy and endorsements, not by the Certificate. CG 20 26 - Sample Form 7

        Delete this item if all work is being done on our property. It should also be deleted if the property owner, licensor or grantor of easement is not required to be an additional insured on the contractor’s policy.

      9. [insert name of non-employee Architect, Engineer and/or Surveyor] shall be endorsed as additional insureds for liability arising out of Contractor’s ongoing operations (ISO endorsement CG 20 32, Additional Insured – Engineers, Architects or Surveyors Not Engaged by the Named Insured, or equivalent).

        We must get a copy of the endorsement or section of the policy that makes the non-employee design professional an additional insured. A statement on the Certificate of Insurance is not sufficient because an insurance company is bound by its policy and endorsements, not by the Certificate. CG 20 32 - Sample Form 16

        Delete this item if all design professionals for this project are our employees. It should also be deleted if the non-employee design professional is not required to be an additional insured on the contractor’s policy.

      10. The policy definition of "insured contract" shall include assumptions of liability arising out of both ongoing operations and the products-completed operations hazard (broad form contractual liability coverage including the "f" definition of insured contract in ISO form CG 00 01, or equivalent).

        This is included in standard General Liability policies and you do not need evidence of coverage.

      11. The insurance provided to the additional insureds shall be primary to, and non-contributory with any insurance or self-insurance program maintained by them.

        Because the County is an additional insured on the contractor’s policy, we want that policy to cover claims before any contribution from County’s CSAC protection or its self-insured retention. To put it another way: the contractor’s policy pays first.

        We must get a copy of the endorsement or section of the policy stating that coverage for additional insureds is Primary & Non-Contributory. A statement on the Certificate of Insurance is not sufficient because an insurance company is bound by its policy and endorsements, not by the Certificate.

      12. The policy shall not exclude injury or damage caused by, or resulting from, explosion, collapse and/or underground hazards.
      13. The policy shall not contain a Contractors’ Warranty or other similar language which eliminates or restricts insurance because of a subcontractor’s failure to carry specific insurance or to supply evidence of such insurance.
      14. The policy shall be endorsed to include a written waiver of the insurer’s right to subrogate against all persons or entities that are, or are required to be, additional insureds.

        If the contractor’s insurer pays a claim to a third party and the County is partially responsible for the injury or damage, the insurer will seek reimbursement from the County. This is called subrogation. The insurer cannot recover from us if it has waived its right to subrogate.

      15. The policy shall cover inter-insured suits between Contractor and the additional insureds and shall include a "separation of insureds" or "severability" clause which treats each insured separately.

        This guarantees that the County will be covered if it is sued by the contractor and that the contractor will be covered if it is sued by the County. This language is standard in the General Liability policy; you do not need to get a specific endorsement to satisfy this requirement.

      16. Required Evidence of Insurance:
        1. Additional insured endorsements or policy language granting additional insured status;
        2. Endorsement or policy language indicating that insurance is primary and non-contributory; and
        3. Subrogation waiver endorsement; and
        4. Certificate of Insurance
    3. Automobile Liability Insurance
      1. Minimum Limit:
        1. Projects under $1,000,000 combined single limit per accident.
        2. Projects $1,000,000 and Over: $2,000,000 combined single limit per accident.
      2. The required limit may be provided by a combination of Automobile Liability Insurance and Commercial Excess or Umbrella Liability insurance.
        If there is a Commercial Umbrella or Excess Liability Policy, the limits are the sum of the Auto Liability limits plus the Umbrella/Excess limits. If there is no evidence of Auto Liability Insurance, an Umbrella or Excess Liability will not provide Auto Liability Insurance.
      3. Insurance shall cover all owned, hired and non-owned vehicles.

        Hired Autos: vehicles the contractor rents or borrows.

        Non-owned Autos: vehicles owned by the contractor’s employees and subcontractors.

        If "Any Auto" is checked on the Certificate of Insurance, it includes owned, hired and non-owned autos.

      4. [insert exact name of additional insured] shall be defined as insureds under the policy or shall be endorsed as additional insureds.

        In most Business Auto policies the definition of "insured" automatically includes organizations that are legally responsible for an insured’s actions. When a contractor is doing work for us, we are legally responsible for its actions.

        Any of the following is acceptable evidence that we are insureds on the contractor’s auto policy:

        1. “Designated Insured” endorsement which states that the County is covered because of the policy definition of “who is an insured”;
        2. Copy of the definition of “insured” from the policy; or
        3. Additional Insured endorsement.

        You often receive a "Designated Insured" endorsement which states that the County is covered because of the policy definition of "who is an insured". A copy of the auto policy definition if "insured" is also satisfactory if it states that "anyone liable for the conduct of an "insured" described above…" is an insured.

        Sample Form 15 - Auto – Evidence of Insured Status

        A few insurers issue additional insured endorsements.

      5. Insurance shall be maintained for the entire term of this Contract, including any warranty period.
      6. Required Evidence of Insurance:
        1. Endorsement or policy language documenting 3.d.; and
        2. Certificate of Insurance
    4. Contractors Pollution Liability Insurance
      (Remove this requirement before the project goes out to bid if the project does not have the potential for environmental pollution.)
      1. Minimum Limits:
        1. Projects under $5,000,000: $1,000,000 per pollution Incident; $1,000,000 Aggregate;
        2. Projects $5,000,000 and Over: $2,000,000 per pollution Incident; $2,000,000 Aggregate.
      2. The insurance shall cover:
        1. bodily injury, sickness, disease, sustained by any person, including death;
        2. property damage, including physical injury to or destruction of tangible property including the resulting loss of use thereof;
        3. cleanup costs, and the loss of use of tangible property that has not been physically injured or destroyed including diminution of value and natural resources damages;
        4. loss arising from pollutants including but not limited to fungus, bacteria, asbestos, lead, silica, and contaminated drywall;
        5. contractual liability coverage for liability assumed by Contractor under a written contract or agreement;
        6. claims arising from owned and non-owned disposal sites utilized in the performance of this Agreement
        7. defense costs, including costs, charges, and expenses incurred in the investigation, adjustment, or defense of claims; and
        8. liability assumed by Contractor under a written contract or agreement.
      3. Any deductible or self-insured retention shall be shown on the Certificate of Insurance. If the deductible or self-insured retention exceeds $25,000 it must be approved in advance by County. Contractor is responsible for any deductible or self-insured retention and shall fund it upon County’s written request, regardless of whether Contractor has a claim against the insurance or is named as a party in any action involving the County.

        Contact Risk Management (Outlook: 139 kB) if the retention or deductible exceeds $25,000. We want to verify that the party with whom we are contracting has sufficient assets to fund a large retention or deductible. No waver is needed.

        There is no specific field on the Certificate of Insurance for a Pollution Liability deductible or retention.

      4. If the insurance is on a Claims-Made basis, the retroactive date shall be no later than the commencement of Work.

        In a claims-made policy the claim (demand for money) has to be made during the policy period. However, the injury or damage must occur on or after the retroactive date. The retroactive date is usually the inception date of the first claims-made policy purchased by the contractor. The Certificate of Insurance must show the retroactive date.

      5. Insurance shall be maintained for the entire period of the Work including any warranty period, plus the additional periods specified below:
        1. Projects under $1,000,000: one (1) year after the end of the warranty period.
        2. Projects from $1,000,000 - $4,999,999: two (2) years after the end of the warranty period.
        3. Projects from $5,000,000 - $9,999,999: three (3) years after the end of the warranty period.
        4. Projects $10,000,000 and Over: five (5) years after the end of the warranty period.
      6. If the insurance is on a Claims-Made basis, the continuation coverage may be provided by: (a) renewal of the existing policy; (b) an extended reporting period endorsement; or (c) replacement insurance with a retroactive date no later than the commencement of the Work.
      7. [insert exact name of additional insured] [insert property owner or licensor if additional insured status is required], [insert funding source if additional insured status is required], and their employees, representatives, consultants, and agents shall be endorsed as additional insureds for liability arising out of ongoing and completed operations by or on behalf of the Contractor in the performance of the Contract Documents.

        We must get a copy of the endorsement or section of the policy that makes us an additional insured. A statement on the Certificate of Insurance is not sufficient because an insurance company is bound by its policy and endorsements, not by the Certificate.

      8. The insurance provided to the additional insureds shall apply on a primary and non-contributory basis with respect to any insurance or self-insurance program maintained by them.

        Because the County is an additional insured on the contractor’s policy, we want that policy to cover claims before County’s self-insured retention or its pollution policy contribute to the claim. To put it another way: the contractor’s policy pays first.

        We must get a copy of the endorsement or section of the policy that has the Primary & Non-Contributory language. A statement on the Certificate of Insurance is not sufficient because an insurance company is bound by its policy and endorsements, not by the Certificate.

      9. The policy shall be endorsed to include a written waiver of the insurer's right to subrogate against all persons or entities that are, or are required to be, additional insureds.
      10. The policy shall cover inter-insured suits between the Contractor and the additional insureds and include a “separation of insureds” or “severability” clause which treats each insured separately.
      11. Required Evidence of Insurance:
        1. Additional insured endorsement or policy language granting additional insured status;
        2. Endorsement or policy language indicating that Insurance is primary and non-contributory;
        3. Subrogation waiver endorsement; and
        4. Certificate of Insurance including an indication of the coverage basis: occurrence or claims-made. If claims-made, the Certificate shall show the policy retroactive date.
    5. Professional Liability/Errors & Omissions Insurance

      Required if the Contractor or its employees engage in design or professional activities (architecture, engineering or surveying) which are not subcontracted out.

      1. Minimum Limit: $1,000,000 - per claim or per occurrence.
      2. Any deductible or self-insured retention shall be shown on the Certificate of Insurance. If the deductible or self-insured retention exceeds $25,000 it must be approved in advance by County.

        Contact Risk Management (Outlook: 139 kB) if the retention or deductible exceeds $25,000. We want to verify that the party with whom we are contracting has sufficient assets to fund a large retention or deductible. A waiver is not needed.

        There is no specific field on the Certificate of Insurance for a Pollution Liability deductible or retention.
      3. If the insurance is on a Claims-Made basis, the retroactive date shall be no later than the commencement of the work.

        In a claims-made professional liability policy the claim (demand for money) has to be made during the policy period. However, the error must be committed on or after the retroactive date. The retroactive date is usually the inception date of the first claims-made policy purchased by the consultant. You do not have to get evidence of the retroactive date.

      4. Insurance applicable to the work performed under the Contract shall be continued for two (2) years after completion of the work. Such continuation insurance may be provided by one of the following: (1) renewal of the existing policy; (2) an extended reporting period endorsement; or (3) replacement insurance with a retroactive date no later than the commencement of the work under this Contract.

        You cannot receive evidence that coverage will be continued after the work is complete because policies are issued for only one year. When reviewing the insurance prior to the start of work, you can verify only that the professional liability is currently in force.

      5. Required Evidence of Insurance: Certificate of Insurance
    6. Increase of Minimum Limits

      Required minimum amounts of insurance may be increased should conditions of Work, in opinion of County, warrant such increase. Contractor shall increase required insurance amounts upon direction by County.

    7. Standards for Insurance Companies

      Insurers, other than the California State Compensation Insurance Fund, shall have an A.M. Best’s rating of at least A:VII.

      A.M. Best is one of the services that reviews insurers’ financial information. We want the insurer to be able to pay its claims. The letter (A+, A, A-, B+, etc.) is Best’s rating of financial strength. The number (XII, VII, etc.) refers to the insurer’s financial size. You can check the rating at: www.ambest.com - the service is free, but you need to register and log in.

    8. Documentation
      1. The Certificate of Insurance shall include the following reference: [insert contract number or project name].

        Putting the contract number or project name on the Certificate of Insurance does not increase our protection. This requirement is included for your convenience.

      2. Contractor agrees to maintain current Evidence of Insurance on file with County for the periods specified above in Sections 1 - 5. Any requirement to maintain insurance after Final Completion of the Work, including providing Certificates evidencing required Insurance, shall survive the Contract
      3. Required evidence of insurance shall be submitted to: [insert name and mailing address].
      4. Required Evidence of Insurance shall be submitted for any renewal or replacement of a policy that already exists, at least ten (10) days before expiration or other termination of the existing policy.
      5. Contractor shall provide immediate written notice if: (1) any of the required insurance policies are terminated; (2) the limits of any of the required policies are reduced; or (3) the deductible or self-insured retention is increased.
      6. Upon written request, certified copies of required insurance policies must be provided within thirty (30) days.

        Because it takes much time and substantial expertise to review an entire insurance policy, we don’t routinely request it. However, if we cannot determine the adequacy of coverage from the certificate and endorsements, this is an option.

    9. Material Breach

      If Contractor fails to maintain Insurance coverage which is required pursuant to the Contract Documents, it shall be deemed a material breach. County, at its sole option, may terminate the Contract for default and obtain damages from Contractor resulting from said breach. Alternatively, County may purchase the required Insurance coverage, and without further notice to Contractor, County may deduct from sums due to Contractor any premium costs advanced by County for such insurance. These remedies shall be in addition to any other remedies available to County under the Contract Documents or Law.

    Subcontractors - Required Insurance

    With respect to their portion of the work, subcontractors of all tiers shall maintain the same insurance required to be maintained by contractor with limits as follows:

    1. Minimum General Liability Limits for Framing, Mechanical, and Electrical Subcontractors
      1. Projects under $1,000,000: 1,000,000 per Occurrence; $2,000,000 General Aggregate; $2,000,000 Products/Completed Operations Aggregate. The General Aggregate shall apply separately to each Project.
      2. Projects $1,000,000 and Over: $2,000,000 per Occurrence; $4,000,000 General Aggregate; $4,000,000 Products/Completed Operations Aggregate. The General Aggregate shall apply separately to each Project.
    2. Minimum General Liability Limits for all Subcontractors other than Framing, Mechanical, and Electrical Subcontractors
      1. $1,000,000 per Occurrence; $2,000,000 General Aggregate; $2,000,000 Products/Completed Operations Aggregate. The General Aggregate shall apply separately to each Project.
    3. Minimum Automobile Liability Limits

      $1,000,000 combined single limit per accident.

    4. Minimum Employers Liability Limits

      $1,000,000 per Accident; $1,000,000 Disease per employee; $1,000,000 Disease per policy.

    5. Professional Liability/Errors & Omissions Insurance

      (Required for any architect, engineer, surveyor or other licensed professional engaged by Contractor to perform portions of the Work)

      1. Minimum Limit: $1,000,000 per claim or per occurrence.
      2. Any deductible or self-insured retention shall be shown on the Certificate of Insurance. If the deductible or self-insured retention exceeds $25,000 it must be approved in advance by County.
      3. If the insurance is on a Claims-Made basis, the retroactive date shall be no later than the commencement of the work.
      4. Coverage applicable to the work performed under the Contract shall be continued for two (2) years after completion of the work. Such continuation coverage may be provided by one of the following: (1) renewal of the existing policy; (2) an extended reporting period endorsement; or (3) replacement insurance with a retroactive date no later than the commencement of the work under this Contract.
      5. Required Evidence of Insurance: Certificate of Insurance

    Builders Risk

    We provide Builders Risk coverage that protects us, the contractor and all subcontractors working on the project. Our property insurance automatically covers this if the full contract value does not exceed $50 million. It covers larger projects if we notify our insurer.

    Please notify Risk Management (Outlook: 139 kB) of ALL projects, regardless of size, so that they can be added to our property insurance schedule.

    With respect to Work under this Contract, County shall maintain "All-Risk" Course of Construction insurance as follows:

    1. Insured property shall include (1) real property in course of construction; (2) building materials and supplies intended to be in or on the completed Work located at the Site, in storage or in transit, and whether or not owned or paid for by County; (3) fixtures and machinery intended to be in or on the completed Work; (4) scaffolding, cribbing, fencing, forms and temporary trailers, while located on the Site, in storage or in transit.

    2. The limit of insurance shall be the full contract value.

    3. Responsibility for paying deductibles is as follows:

      Contract Value or DescriptionContractor’s Responsibility for Deductible: Earthquake and FloodContractor’s Responsibility for Deductible: Other Insured PerilsCounty’s Responsibility for Deductible
      Full Contract Value under $1,000,000First $10,000First $5,000Balance of Deductible
      Full Contract Value: $1,000,000 - $9,999,999First $20,000First $10,000Balance of Deductible
      Full Contract Value: $10,000,000 - $19,999,999First $50,000First $25,000Balance of Deductible
      Full Contract Value: $20,000,000 and aboveFirst $60,000First $30,000Balance of Deductible
    4. Contractor and Subcontractors of all tiers shall be additional insureds.
    5. Excluded projects: dams; piers; roads; bridges; wastewater treatment facilities.
    6. Excluded property: equipment, tools and personal effects belonging to Contractor or Subcontractors of all tiers.
    7. Insured perils: All Risks of Direct Physical Damage or Loss, including flood and, for scheduled locations, earthquake, except as excluded.
    8. Exclusions may include, but are not limited to:
      1. Loss due to wear and tear, moth, vermin, termites, insects, latent defects, gradual deterioration, wet or dry rot, rust, corrosion, erosion or normal settling, shrinkage and/or expansion of buildings or foundations.
      2. The cost of making good, faulty or defective workmanship, material, construction or design. Damage resulting from such faulty or defective workmanship, material, construction or design is not excluded.
      3. Loss resulting from delay in completion of contract or non-compliance with contract conditions.
      4. Loss or damage due to contaminants and/or pollutants. However, fire losses arising directly or indirectly from pollutants or contaminants are covered.
      5. Loss of use or occupancy or consequential loss.
      6. Liquidated damages and/or penalties for delay or detention in connection with guarantees of performance or efficiency.
      7. Loss or damage caused by or resulting from infidelity or dishonesty on the part of any insured or the employees or agents of any insured.
      8. Inventory shortage or unexplained disappearance.
    9. County’s Course of Construction Insurance, including all policy coverages, conditions and exclusions, shall control in the event of any conflict with the language of these Supplementary Conditions. Upon request, County will provide a Certificate of Property Insurance.

    When the contractor requests a Certificate of Property Insurance, please forward the request to Risk Management (Outlook: 139 kB) with (1) name and mailing address of the contractor; (2) brief description of the project, including the location and (3) the contract value.

    Contact Information

    Jamie Bloom, Insurance Manager

    Reesha Ruel, Liability Manager

    Risk Management Division

    Human Resources Department

    Business Hours
    Monday – Friday
    8:00 AM – 5:00 PM
    Contact us by Phone
    Address
    575 Administration Drive
    Room 116 B
    Santa Rosa, CA 95403
    38.465237, -122.725363

    Contracts Exempt from Insurance

    Certain contracts pose low risk, therefore, they are exempt from insurance requirements.

    Learn more