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Insurance Coverage Contract Clause

These contracts will vary considerably in terms of risk exposure. While some discretion is required with small entrepreneurs in terms of limits, all mandatory provisions are required. This is a broad coverage requirement if a subcontractor is involved in an activity that may include the transport, application, disposal, use or handling of „hazardous materials“. Most contractors do not have liability insurance against pollution or asbestos. That doesn`t mean the county won`t require that. Flexibility shall be exercised in the application of this provision. The decision not to require such coverage must be made in consultation with the risk management. Most insurance contracts are indemnity contracts. Indemnity contracts apply to insurance when the damage suffered can be measured in cash. Unless otherwise specified, the owner acquires and maintains property insurance for all work on the construction site at full insurable value, subject to the deductible provided below. This insurance covers the interests of the owner, contractor, subcontractors and subcontractors in the work and insures against fire hazards and extended coverage and includes „all risks“ insurance for physical loss or damage, including, without double coverage, theft, vandalism or malicious mischief. If the owner does not intend to take out such insurance for the full insurable value of all the work, he must inform the contractor in writing before the work begins.

The contractor can then take out insurance that protects the interests of the contractor, all subcontractors and subcontractors of the plant, and through a corresponding modification order, the cost of the latter will be invoiced to the owner. If the Contractor is damaged by the Owner`s failure to take out or maintain such insurance and to inform the Contractor thereof, the Contractor shall bear all reasonable costs duly attributable to him If the Contractor is not covered by the risk insurance otherwise provided for in the Contract Documents, the Contractor shall take out and maintain similar property insurance for certain parts of the Work, that are stored outside the construction site or during transportation. The contractor`s tools, materials, equipment, appliances and all other facilities and ancillary costs required for this project are not insured by the owner. Without limiting or reducing The Contractor`s obligation to indemnify or indemnify the COUNTY, the Contractor shall procure and maintain or maintain the following insurance coverages at its own expense and expense during the term of this Agreement. Solely with respect to the Insurance Division, the County here refers to Riverside County, its agencies, counties, districts and special departments, their respective directors, officers, boards of directors, employees, representatives or representatives as additional insureds. Below are the „mandatory provisions“. These provisions must be included in the „Insurance Requirements“ section of your contract. There are few situations in which all these provisions would not be required. These exceptions are described in the „CATEGORY“ section on actuarial requirements (pages IV-3 – IV-6). 5) It is understood and agreed by the parties that the ENTREPRENEUR`s insurance shall be interpreted as primary insurance, and that the insurance and/or deductibles and/or self-insured deductible programs of the COUNTY shall not be construed as contributory.

The county property insurance policy covers the ownership of the care, custody, and control of the county. This includes both rented and leased equipment. The county`s $250,000 deductible applies. Coverage of subcontractors` activities is not included. (The county has no coverage for equipment leased to a contractor.) Devices approved for use on the road are not insured in the event of a collision. Equipment used for firefighting is not covered. D. If the contract is concluded with a tenant or a general tenant, add: All insurance contracts are based on the concept of uberrima fides or the doctrine of good faith. This doctrine emphasizes the existence of mutual faith between the insured and the insurer.

Simply put, when you apply for insurance, it becomes your duty to honestly disclose your relevant facts and information to the insurer. Similarly, the insurer cannot hide information about the insurance coverage sold. As already mentioned, insurance works according to the principle of mutual trust. It is your responsibility to disclose all relevant facts to your insurer. Usually, there is a breach of the principle of good faith if you, intentionally or accidentally, do not disclose these important facts. There are two types of secrecy: In addition, you must consider all exclusions to protect yourself from uninsured liabilities that you might suddenly encounter. Such an exclusion is also known as a „contractual disclaimer“. This is a clause that would exclude coverage of the insured`s responsibilities via: In Section II of this guide, you have learned how to perform a risk analysis of the potential risk associated with the services or goods obtained under your contract. Once this is done, you will have a better understanding of the types of insurance that should be required in your contract to protect the county and contractor from loss. .