2554-07-22

City of Santa Monica Cultural Affairs Division

City of Santa Monica Cultural Affairs Division

Grantee Insurance Requirements

Prior to commencing work, Grantee shall procure and maintain at Grantee’s own cost and expense for the duration of this Agreement insurance against claims for injuries to persons or damage to property which may arise from or in connection with the performance of the work or services hereunder by the Grantee and its agents, representatives, employees, or subcontractors. The cost of such insurance shall be included in Grantee’s bid.

Without in any way affecting the indemnity provided, the Grantee shall secure before commencement of the work and throughout the Agreement the following types and amounts of insurance:

Minimum Limits of Insurance

Grantee shall obtain insurance of the types and in the amounts described below:

1) Commercial General Liability Insurance

Grantee shall maintain commercial general liability insurance (CGL) with a limit of not less than $1,000,000 each occurrence/$2,000,000 in the annual aggregate.

Minimum Scope of Insurance

1) CGL insurance shall be written on Insurance Services Office form CG 00 01 (or a substitute form providing equivalent coverage) and shall cover liability arising from premises, operations, independent Contractors, products-completed operations, personal injury and advertising injury liability assumed under an insured contract (including the tort liability of another assumed in a business contract), and explosion, collapse and underground hazards.

Deductibles and Self-Insured Retentions

Any deductibles or self-insured retentions must be declared to and approved by the City of Santa Monica. At the option of the City of Santa Monica, either: the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the City of Santa Monica, its officers, officials, employees, or volunteers; or the Grantee shall provide a financial guarantee satisfactory to the City of Santa Monica guaranteeing payment of losses and related investigation, claim administration and defense expenses.

Other Insurance Provisions

The general liability and automobile liability policy is to contain, or be endorsed to contain, the following provisions:

1) The City of Santa Monica, its officers, officials, employees, and volunteers are to be covered as additional insureds with respect to liability arising out of automobiles owned, leased, hired, or borrowed by or on behalf of the Contractor; and with respect to liability arising out of work or operations performed by or on behalf of the Grantee including materials, parts or equipment furnished in connection with such work or operations. Under the CGL policy, the Grantee shall provide an additional insured endorsement using the Insurance Services Office additional insured endorsement form CG 20 26, or a substitute providing equivalent coverage. The additional insured endorsement is also required if Grantee possesses a commercial umbrella policy or an excess policy. City and other additional insureds mentioned in this paragraph shall not, by reason of their inclusion as additional insureds, become liable for any payment of premiums to carriers for such coverage.

2) For any claims related to this program, the Grantee’s insurance coverage shall be primary as respects the City of Santa Monica, its officers, officials, employees, and volunteers. Any insurance or self-insurance maintained by the City of Santa Monica, its officers, officials, employees, or volunteers shall be in excess of the Grantee’s insurance and shall not contribute with it.

3) Coverage shall not extend to any indemnity coverage for the active negligence of the additional insured in any case where an agreement to indemnify the additional insured would be invalid under subdivision (b) of Section 2782 of the Civil Code.

General Liability

The insurer shall agree to waive all rights of subrogation against the City of Santa Monica, its officers, officials, employees, and volunteers for losses arising from activities and operations of Grantee in the performance of services under this Agreement.

All Coverages

1) Each insurance required by this Agreement shall be endorsed to state that coverage shall not be canceled except after at least thirty (30) days’ prior written notice by certified mail, return receipt requested, has been given to the City as set forth in the notice requirement of this Agreement.

2) If Grantee, for any reason, fails to maintain insurance coverage which is required pursuant to this Agreement, the same shall be deemed a material breach of contract. City, at its sole option, may terminate this Agreement and obtain damages from the Grantee resulting from said breach. Alternatively, City may purchase such coverage (but has no special obligation to do so), and without further notice to the Grantee, City may deduct from sums due to the Grantee any premium costs advanced by the City for such insurance.

Acceptability of Insurers

Insurance is to be placed with insurers with a current A.M. Best’s rating of no less than A:6, unless otherwise approved by the City’s Risk Manager.

Verification of Coverage

Grantee shall furnish the City of Santa Monica with original certificates and amendatory endorsements effecting coverage required by this section. The certificates and endorsements for each policy are to be signed by a person authorized by the insurer to bind coverage on its behalf. The certificates and endorsements should be on forms provided by the City of Santa Monica or on other than the City of Santa Monica’s forms, provided those forms and endorsements conform to the requirements. All certificates and endorsements are to be received and approved by the City of Santa Monica before work commences. The City of Santa Monica reserves the right to require complete, certified copies of all required insurance policies, including endorsements affecting the coverage required by these specifications at any time.

Subcontractors

Grantee shall include all subcontractors as insureds under its policies or shall furnish separate certificates and endorsements for each subcontractor. All coverages for subcontractors shall be subject to all of the requirements stated herein.

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