Liability & Insurance

Template 2

 Use Template 2 for:

Construction and Public Works Projects not using Document 00821.

    • For Construction and Public Works projects using Document 00821, use Template 1.
    • 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 2
    (Word: 28 kB)

    Template Assistant

    Section 00800
    Supplementary Conditions - Insurance and Indemnification

    Summary

    This document includes requirements that supplement Section 00700 (General Conditions).

    Supplements

    Insert the following as Article 16:

    Article 16 – 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”.

    1. [Do not delete this paragraph]
    1. General:
      Contractor shall maintain and shall require all of its subcontractors and other agents to maintain the insurance listed below. Contractor shall not commence Work, nor allow its employees, subcontractors or anyone to commence Work until the required insurance has been submitted and approved by Owner and a Notice to Proceed has been issued. Any requirement for insurance to be maintained after completion of the Work shall survive this Contract.
      1. Owner 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.

    2. Contractor - Required Insurance:
      1. At or before the date specified in Section 00510 (Notice of Award), Contractor shall furnish to Owner satisfactory proof that Contractor has obtained the following insurance as specified below:
        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 Owner.

            If a contractor’s employee is injured on the job, the workers compensation insurer will cover the claim. However, if the Water Agency 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
          5. 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 Owner under provisions of the Workers Compensation Insurance and Safety Act (Act), as amended, or for which compensation is claimed from Owner, Owner 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 Owner is compelled to pay compensation, Owner may, in its discretion, either deduct and retain from the Contract Sum the amount so paid, or require Contractor to reimburse Owner.
        2. General Liability Insurance.
          1. Commercial General Liability Insurance on a standard occurrence form, no less broad than Insurance Services Office (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.

            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, Owner 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: $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 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 Owner. Contractor is responsible for any deductible or self-insured retention and shall fund it upon Owner’s written request, regardless of whether Contractor has a claim against the insurance or is named as a party in any action involving Owner.

            Contact Risk Management 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 and for the duration of Contractor’s Guarantee Period specified in Section 00630 (Guarantee). Completed operations insurance shall be maintained beyond the Guarantee Period as 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 end of Guarantee Period.
            2. Projects from $1,000,000 - $4,999,999: Two (2) years after end of Guarantee Period.
            3. Projects from $5,000,000 - $9,999,999: Three (3) years after end of Guarantee Period.
            4. Projects $10,000,000 and Over: Five (5) years after end of Guarantee Period.
          5. Owner, its Board of Directors, and its employees, representatives, consultants, and agents [For CSDs add:]; and Sonoma County Water Agency, its employees, representatives, consultants, and agents; [Option if work is on County property (per RM: County should be an additional insured for work at Spring Lake Park, Riverfront, Wohler Bridge, Santa Rosa Creek Trail, Colgan Creek Trail or Hunter Creek Trail and work on other County property):]; County of Sonoma, its officers, employees, consultants, representatives, 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. Additional insureds status shall continue for the period(s) specified in paragraph 16.2A.2.d [double check cross-reference] 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 Help Request 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 Help Request 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 Help Request.

          7. [If additional insured status is required by agreement, include the following:] [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. [If additional insured status is required by agreement, include the following:] [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. [If additional insured status is required by agreement, include the following:] [Insert name of 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 Water Agency is an additional insured on the contractor’s policy, we want that policy to cover claims before any contribution from Water Agency’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 Water Agency is partially responsible for the injury or damage, the insurer will seek reimbursement from the Water Agency. 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 Water Agency will be covered if it is sued by the contractor and that the contractor will be covered if it is sued by the Water Agency. 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;
            3. Subrogation waiver endorsement; and
            4. Certificate of Insurance.
        3. Automobile Liability Insurance.
          1. Minimum Limit:
            1. Projects under $1,000,000: $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 Commercial 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. Owner, its Board of Directors, and its employees, representatives, consultants, and agents [For CSDs add:]; and Sonoma County Water Agency, its employees, representatives, consultants, and agents; [Option if work is on County property [per RM, County should be an additional insured for work at Spring Lake Park, Riverfront, Wohler Bridge, Santa Rosa Creek Trail, Colgan Creek Trail or Hunter Creek Trail and work on other County property:]; and County of Sonoma, its officers, employees, consultants, representatives, and agents; 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. A few insurers issue additional insured endorsements.

            Sample Form #15 - Auto – Evidence of Insured Status

          5. Insurance shall be maintained for the entire term of this Contract, including any Guarantee Period.
          6. Required Evidence of Insurance:
            1. Endorsement or policy language documenting Paragraph 16.2A.3.d; and
            2. Certificate of Insurance.
        4. [This requirement may be removed before advertisement (rare) for projects that don't have the potential for broad environmental pollution either during or after construction. Most contractors have this coverage, so it is unlikely that requiring this coverage will increase bid prices. If project may include damage caused by, or resulting from, subsidence, mold, or silica, contact Risk Management for language to encompass these exposures.] Contractors Pollution Liability Insurance.
          1. Minimum Limits: [increase limits for high risk/complex projects – consult with Risk Management]
            1. Projects under $5,000,000: $1,000,000 per pollution Incident; $1,000,000 Aggregate; and
            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; [remove any of these that do not apply; if none apply, completely delete this item]
            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 Contract; and
            7. defense costs, including costs, charges, and expenses incurred in the investigation, adjustment, or defense of claims.
          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 Owner. Contractor is responsible for any deductible or self-insured retention and shall fund it upon Owner’s written request, regardless of whether Contractor has a claim against the insurance or is named as a party in any action involving Owner.

            Contact Risk Management 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 and for the duration of Contractor’s Guarantee Period specified in Section 00630 (Guarantee), plus the additional periods as specified below:
            1. Projects under $1,000,000: One (1) year after end of Guarantee Period.
            2. Projects from $1,000,000 - $4,999,999: Two (2) years after end of Guarantee Period.
            3. Projects from $5,000,000 - $9,999,999: Three (3) years after end of Guarantee Period.
            4. Projects $10,000,000 and Over: Five (5) years after end of Guarantee 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. Owner, its Board of Directors, [If additional insured status is required by agreement, insert:] [name of property owner or licensor], [If additional insured status is required by agreement, insert:] [funding agency] [Option if work is on County property [per RM, County should be an additional insured for work at Spring Lake Park, Riverfront, Wohler Bridge, Santa Rosa Creek Trail, Colgan Creek Trail or Hunter Creek Trail and work on other County property:]; and County of Sonoma, its officers, employees, consultants, representatives, and agents; and its employees, representatives, consultants, and agents; [For CSDs add:] and Sonoma County Water Agency, its 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 coverage 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.
          1. Required if the Contractor or its employees engage in design or professional activities (architecture, engineering or surveying) that are not subcontracted out.
          2. Minimum Limit: $1,000,000 per claim or per occurrence.

            Contact Risk Management 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. 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 Owner.
          4. 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.

          5. 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: (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.

            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.

          6. Required Evidence of Insurance:
            1. Certificate of Insurance.
      2. Increase of Minimum Limits.
        1. Required minimum amounts of insurance may be increased should conditions of Work, in opinion of Owner, warrant such increase. Contractor shall increase required insurance amounts upon direction by Owner.
      3. Standards for Insurance Companies.
        1. 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’s 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: http://www.ambest.com/ - the service is free, but you need to register and log in.

      4. Documentation.
        1. The Certificate of Insurance shall include the following reference: [00-0-7 #_].

          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 Owner for the periods of [?] insurance specified above in Paragraphs 16.2A.1 through 16.2A.5. [double check cross-references] Any requirement to maintain insurance after Final Completion of the Work, including providing Certificates evidencing required insurance, shall survive the Contract.
          1. Required Evidence of Insurance shall be submitted to Sonoma County Water Agency [Alternate for CSDs:] [insert name of CSD] County Sanitation District, c/o Sonoma County Water Agency, 404 Aviation Boulevard, Santa Rosa, CA 95403-9019.
          2. 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.
          3. Contractor shall provide immediate written notice if: (a) any of the required insurance policies are terminated; (b) the limits of any of the required policies are reduced; or (c) the deductible or self-insured retention is increased.
          4. 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.

      5. Policy Obligations.
        1. Contractor's indemnity and other obligations shall not be limited by the foregoing insurance requirements.
      6. Material Breach.
        1. If Contractor fails to maintain Insurance which is required pursuant to the Contract Documents, it shall be deemed a material breach. Owner, at its sole option, may terminate the Contract for default and obtain damages from Contractor resulting from said breach. Alternatively, Owner may purchase the required Insurance, and without further notice to Contractor, Owner may deduct from sums due to Contractor any premium costs advanced by Owner for such insurance. These remedies shall be in addition to any other remedies available to Owner under the Contract Documents or Law.
    3. Subcontractors - Required Insurance:
      1. 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. $1,000,000 combined single limit per accident.
        4. Minimum Employers Liability Limits.
          1. $1,000,000 per Accident; $1,000,000 Disease per employee; $1,000,000 Disease per policy.
        5. Professional Liability/Errors & Omissions Insurance.
          1. Required for any architect, engineer, surveyor, or other licensed professional engaged by Contractor to perform portions of the Work.
          2. Minimum Limit: $1,000,000 per claim or per occurrence.
          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 Owner.
          4. If the insurance is on a Claims-Made basis, the retroactive date shall be no later than the commencement of the Work.
          5. 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: (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.
          6. Required Evidence of Insurance:
            1. Certificate of Insurance.
    4. Builders Risk: [check with Risk Management on use of this provision -- see note in paragraph 16.5 below]

      When we provide Builders Risk coverage it 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.

      1. With respect to Work under this Contract, Owner 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 Owner; (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. Limit of insurance shall be the full contract value.
        3. Responsibility for paying deductibles is as follows:

          Please note: The format of the tables below have been modified for online viewing. The original table layout and contents have been preserved in the downloadable template.

          Deductible Responsibility: Earthquakes and Floods
          Full Contract Value ContractorOwner
          Under $1,000,000 First $10,000 Balance
          $1,000,000 - $9,999,999 First $20,000 Balance
          $10,000,000 - $19,999,999 First $50,000 Balance
          $20,000,000 and above First $60,000 Balance
          Deductible Responsibility: Other Insured Perils
          Full Contract Value Contractor Owner
          Under $1,000,000 First $5,000 Balance
          $1,000,000 - $9,999,999 First $10,000 Balance
          $10,000,000 - $19,999,999 First $25,000 Balance
          $20,000,000 and above First $30,000 Balance
        4. Contractor and Subcontractors of all tiers shall be additional insureds.
        5. Sections 5, 6, and 8. describe limitations in the builders risk insurance. Please format them in boldface type.
        6. Excluded projects: dams; piers; roads; bridges; wastewater treatment facilities.
        7. Excluded property: Equipment, tools, and personal effects belonging to Contractor or Subcontractors of all tiers.
        8. Insured perils: All Risks of Direct Physical Damage or Loss, including flood and, for scheduled locations, earthquake, except as excluded.
        9. Exclusions may include, but are not limited to:
          1. Loss due to wear and tear, moths, 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.
        10. Course of Construction Insurance, including all policy coverages, conditions and exclusions, shall control in the event of any conflict with the language of this Section 00700. Upon request, Owner will provide a Certificate of Property Insurance.

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

    5. Builders Risk: [check with Risk Management for use of this alternate: Use the following in place of standard provision above for projects involving (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.]

      If the contractor is required to provide builders risk, delete 16.4 above and re-number this as 16.4.

      1. With respect to Work under this Contract, Contractor shall maintain “All-Risk” Course of Construction insurance as follows:
        1. Minimum Limit: 100% of the completed value of the Project.
        2. Insured property shall include (1) Real property in Course of Construction; (2) building materials and supplies intended to be in or on the completed Project located at any portion of the jobsite, in storage, or in transit, (3) fixtures and machinery intended to be in or on the completed Project; (4) scaffolding, cribbing, fencing, forms and temporary trailers, while located at any portion of the jobsite, in storage or in transit.
        3. Contractor, subcontractors of all tiers, and the Sonoma County Water Agency shall be endorsed as insured parties.
        4. Insured perils: All Risks of Direct Physical Damage or Loss except as excluded. The insured perils shall be no less broad than those covered by ISO Causes of Loss – Special Form CP 10 30.
        5. Required Evidence of Insurance:
          1. Endorsement evidencing insured status as required by Paragraph 16.4A.3 above; and
          2. Certificate of Property Insurance (Acord Form 24).

    Insert the following as Article 17:

    Article 17 – Responsibility of Contractor and Indemnification

    1. [Do not delete this paragraph]
    1. Owner and each of its officers, employees, consultants, and agents including, but not limited to, [for CSDs add:] Water Agency, the Board, Owner’s Project Manager, and each Owner’s Representative, shall not be liable or accountable in any manner for loss or damage that may happen to any part of the Work; loss or damage to materials or other things used or employed in performing the Work; injury, sickness, disease, or death of any person; or damage to property resulting from any cause whatsoever except their sole negligence, willful misconduct or active negligence, attributable to performance or character of the Work, and Contractor releases all of the foregoing persons and entities from any and all such claims.
    2. To the furthest extent permitted by law (including without limitation California Civil Code §2782), Contractor shall assume defense of, and indemnify and hold harmless, Owner and each of its officers, employees, consultants, and agents including, but not limited to, [for CSDs add:] Water Agency, the Board, Owner’s Project Manager and each Owner’s Representative, from claims, suits, actions, losses, and liability of every kind, nature and description, including but not limited to claims and fines of regulatory agencies and attorney’s fees and consultant’s fees, directly or indirectly arising out of, connected with or resulting from performance of the Work, failure to perform the Work, or condition of the Work which is caused in whole or part by any act or omission of Contractor, Subcontractors, anyone directly or indirectly employed by any of them or anyone for whose acts any of them may be liable, resulting from any cause whatsoever except their sole negligence, willful misconduct, or active negligence.
    3. With respect to third-party claims against Contractor, Contractor waives any and all rights to any type of express or implied indemnity against Owner and each of its officers, employees, consultants, and agents including, but not limited to, Owner, [for CSDs add:] Water Agency, the Board, Owner’s Project Manager and each Owner’s Representative. Owner shall provide timely notice to Contractor of any third-party claim relating to the Contract Documents, in accordance with Section 9201 of the California Public Contract Code.
    4. Approval or purchase of any insurance contracts or policies shall in no way relieve from liability nor limit the liability of Contractor, its Subcontractors of any tier, or the officers or agents of any of them.
    5. To the furthest extent permitted by law (including, without limitation, Civil Code §2782), the indemnities, releases of liability and limitations of liability, claims procedures, and limitations of remedy expressed throughout Contract Documents shall apply even in the event of breach of Contract, negligence (active or passive), fault or strict liability of the party(ies) indemnified, released, or limited in liability, and shall survive the termination, rescission, breach, abandonment, or completion of the Work or the terms of the Contract Documents. If Contractor fails to perform any of these defense or indemnity obligations, Owner may in its discretion back charge Contractor for Owner’s costs and damages resulting therefrom and withhold such sums from progress payments or other Contract monies which may become due.
    6. The indemnities in the Contract Documents shall not apply to any indemnified party to the extent of its sole negligence or willful misconduct; nor shall they apply to Owner or other indemnified party to the extent of its active negligence.

    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