When deciding what type of insurance to require, the main question you should ask yourself is "What could go wrong?" You need to note who can potentially be injured and what property can potentially be damaged by negligent acts of the contractor.
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Section I. General Requirements
A) Acceptable to DGS
Insurance companies must be acceptable to the Department of General Services. If self insured, review of financial information may be required.
Coverage needs to be in force for complete term of contract. If insurance expires during the term of the contract, a new certificate must be received by the State at least ten (10) days prior to the expiration of this insurance. This new insurance must still meet the terms of the original contract.
Insurance policies shall contain a provision that states that coverage will not be cancelled without 30 days prior written notice to the State.
Contractor is responsible for any deductible or self-insured retention contained within the insurance program.
In the event contractor fails to keep in effect at all times the specified insurance coverage, the State may, in addition to any other remedies it may have, terminate the contract upon the occurrence of such event, subject to the provisions of the contract.
Any insurance required to be carried shall be primary, and not excess, to any other insurance carried by the State.
Section II. Typical Insurance Requirements
A) Commercial General Liability
Contractor shall maintain general liability with limits of not less than $[Insert Limit of Insurance] per occurrence for bodily injury and property damage liability combined. The policy shall include coverage for liabilities arising out of premises, operations, independent contractors, products, completed operations, personal & advertising injury, and liability assumed under an insured contract. This insurance shall apply separately to each insured against whom claim is made or suit is brought subject to the contractor's limit of liability.
The policy must include the State of California, its officers, agents, employees and servants as additional insureds, but only insofar as the operations under the contract are concerned.
Contractor shall maintain motor vehicle liability with limits of not less than $[Insert Limit of Insurance] per accident. Such insurance shall cover liability arising out of a motor vehicle including owned, hired, and non-owned motor vehicles.
Contractor shall maintain statutory workers' compensation and employer's liability coverage for all its employees who will be engaged in the performance of the contract, including special coverage extensions where applicable. Employer's liability limits of $1,000,000 shall be required.
Contractor shall maintain Aircraft Liability with limits of not less than $[Insert Limit of Insurance] per occurrence and $[Insert Limit of Insurance] per seat for passengers.
The policy must include the State of California, its officers, agents, employees and servants as additional insureds, but only insofar as the operations under the contract are concerned.
Contractor shall maintain Pollution Liability covering the contractor's liability for bodily injury, property damage and environmental damage resulting from pollution and related cleanup costs incurred, all arising out of the work or services to be performed under this contract. Coverage shall be provided for both work performed on site, as well as during the transport of hazardous materials. Limits of not less than $[Insert Limit of Insurance] shall be provided.
The policy must include the State of California, its officers, agents, employees and servants as additional insureds, but only insofar as the operations under the contract are concerned.
Contractor shall maintain Professional Liability covering any damages caused by an error, omission or any negligent acts. Limits of not less than $[Insert Limit of Insurance] shall be provided.
During the term of this contract, Contractor shall maintain in force, at its own expense, Builder's Risk / Installation Floater covering contractor's labor, materials and equipment to be used for completion of the work performed under this contract against all risks of direct physical loss, excluding earthquake and flood, for an amount equal to the full amount of the contract improvements.
Contractor shall maintain Employee Dishonesty and, when applicable, Inside/Outside Money & Securities coverages for state-owned property in the care, custody and control of the contractor. Coverage limits shall not be less than the amount scheduled in the contract. The policy shall include as loss payee [Insert name of your agency/department].
