Sample Construction Contract-5

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worker's compensation claim of any employee of the Contractor or any

Subcontractor of the Contractor.

17.2 The Contractor agrees to investigate, handle, respond to, and to provide defense
for and defend against, any such liability, claims or demands at the sole expense
of the Contractor, or at the option of the Owner, agrees to pay the Owner or
reimburse the Owner for defense costs incurred by the Owner in connection with,
any such liability, claims or demands. In carrying out any of the provisions of this
Contract or in exercising any power or authority thereby, there shall be no
personal liability of the Owner or the Owner's Representative, or officials,
attorneys, employees and agents thereof.

17.3 The Contractor also agrees to bear all other costs and expenses related thereto,
including court costs and attorney fees, whether any such liability, claims or
demands alleged are groundless, false or fraudulent. The obligation of these
provisions shall not extend to any injury, loss or damage which is caused by the
act, omission or other fault of the Owner

Insurance

17.4 The Contractor agrees to procure and maintain, at its own cost, a policy or
policies of insurance sufficient to insure against all liability, claims, demands, and
other obligations assumed by the Contractor pursuant to Section 18.1. Such
insurance shall be in addition to any other insurance requirements imposed by
this contract or by law. The Contractor shall not be relieved of any liability,
claims, demands, or other obligations assumed pursuant to Section 18.1 by
reason of its failure to procure or maintain insurance, or by reason of its failure to
procure or maintain insurance in sufficient amounts, durations, or types.

17.5 Contractor shall procure and maintain, and shall cause any Subcontractor of the
Contractor to procure and maintain, the minimum insurance coverages listed
below. Such coverages shall be procured and maintained with forms and
insurers acceptable to Owner. All coverages shall be continuously maintained to
cover all liability, claims, demands, and other obligations assumed by the
Contractor pursuant to Section 18.1. In the case of any claims-made policy, the
necessary retroactive dates and extended reporting periods shall be procured to
maintain such continuous coverage.

(a) Worker's Compensation insurance to cover obligations imposed by


applicable laws for any employee engaged in the performance of work
under this contract. Evidence of qualified self-insured status may be
substituted for the Workmen's Compensation requirements of this
paragraph.

(b) Commercial General Liability insurance with minimum combined single


limits of ONE MILLION DOLLARS ($1,000,000) each occurrence and
ONE MILLION DOLLARS ($1,000,000) aggregate. The policy shall be
applicable to all premises and operations. The policy shall include
coverage for bodily injury, broad form property damage (including
completed operations), personal injury (including coverage for contractual
and employee acts), blanket contractual, independent contractors,
products, and completed operations. The policy shall include coverage for
explosion, collapse, and underground hazards. The policy shall contain a
severability of interests provision.

(c) Comprehensive Automobile Liability insurance with minimum combined


single limits for bodily injury and property damage of not less than FIVE
HUNDRED THOUSAND DOLLARS ($500,000) each occurrence and
FIVE HUNDRED THOUSAND DOLLARS ($500,000) aggregate with
respect to each of Contractor's owned, hired and non-owned vehicles
assigned to or used in performance of the services. The policy shall
contain a severability of interests provision. If the Contractor has no
owned automobiles, the requirements of this Paragraph shall be met by
each employee of the Contractor providing services to the Owner under
this contract.

(d) Professional/Contractor Liability insurance with minimum limits of ONE


MILLION DOLLARS ($1,000,000) each occurrence and ONE MILLION
DOLLARS ($1,000,000) aggregate.

17.6 The policy required by paragraphs (b) and (c) above shall be endorsed to include
Owner and the Owner's Representative, and officers and employees thereof, as
additional insureds. Every policy required above shall be primary insurance and
any insurance carried by Owner, its officers, or its employees, or carried by or
provided through any insurance pool of Owner, shall be excess and not
contributory insurance to that provided by Contractor. No additional insured
endorsement to any policy shall contain any exclusion for bodily injury or property
damage arising from completed operations. The Contractor shall be solely
responsible for any deductible losses under any policy required above.

17.7 The certificate of insurance provided by Owner shall be completed by the


Contractor's insurance agent as evidence that policies providing the required
coverages, conditions, and minimum limits are in full force and effect, and shall
be reviewed and approved by Owner prior to commencement of the contract. No
other form of certificate shall be used. The certificate shall identify this Contract
and shall provide that the coverages afforded under the policies shall not be
cancelled, terminated or materially changed until at least thirty (30) days prior
written notice has been given to Owner. Any statement of the certificates which
describe this 30-day prior written notice as being less than obligatory shall be
stricken and initialed by the insurance agent completing the certificates. The
completed certificate of insurance shall be sent to Owner.

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