HomeMy WebLinkAbout7534_CCv0001.pdf RESOLUTION NO. 7534
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDLANDS
ESTABLISHING THE CITY'S INSURANCE REQUIREMENTS AND
PROCEDURES FOR GRANTING EXEMPTION FROM COVERAGE
REQUIREMENTS
WHEREAS, it is the desire of the City Council to define the insurance requirements
placed upon individuals and organizations conducting business either with the City or on City
property to best protect the financial and legal interests of the City should a claim be brought
forth and a request for payment of damages be made;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Redlands as
follows:
Section 1. This Resolution shall be known as the City of Redlands ("City") Revision
of City Insurance Requirements Resolution.
Section 2. The purpose of this Resolution is to establish changes in the
administration, process, and structuring of the Insurance Requirements unposed by the City of
Redlands on individuals and organizations conducting business with the City or utilizing City
Property for events and activities.
Section 3. As used in this Resolution, the following terms shall have the meanings as
indicated:
A. AGGREGATE - A limit in an insurance policy stipulating the most it will pay for
all covered losses sustained during a specified period of time, usually a year.
B. CITY- The City of Redlands, a municipal corporation. Where appropriate herein,
"City" shall refer to the City Council.
C. COMBINED SINGLE LIMIT- Single policy limit that applies to any combination
of bodily injury and property dainage.
D. COVERAGE- The amount of risk or liability covered for an individual or entity by
way of insurance services.
E. OCCURRENCE- An event that triggers coverage under the policy.
F. STATUTORY REQUIREMENT- Limit of insurance that is required to be
maintained under law by the State of California.
Tenns not defined herein shall have the meanings as set forth in Black's Law Dictionary.
Section 4. Proposed Tiers.
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All Coverage is required to be with an Insurance Carrier with an A.M. Best rating of no less than
A- VIII and authorized by the California Department of Insurance
A. Vendors/Suppliers/General
The vendor/supplier shall secure the zninfinum coverage described below:
1. Commercial General Liability(CGL):
a. Limits of insurance not less than:
(i) $1,000,000 Each Occurrence Limit
(ii) $1,000,000 Personal&Advertising Injury Limit
(iii) $2,000,000 Annual Aggregate Linit
(iv) $2,000,000 Products-Completed Operations Limit
b. The City shall be included as an additional 'insured. The
vendor/supplier must also cause its policy to be amended to provide that
the coverage afforded to the additional insured is primary to and
noncontributing with any other insurance, self-insurance or deductible
amount maintained by or provided to the additional insured. Attached to
each certificate of insurance shall be a copy of the additional insured
endorsement that is part of the vendor/supplier's CGL, as well as a copy of
the policy's endorsement providing coverage td the additional insured on a
primary and non-contributing basis.
C. CGL coverage shall be written on ISO Occurrence form
CG00011093 or a substitute fonn providing equivalent coverage and shall
cover liability arising from premises, operations, independent contractors,
products-completed operations, and personal and advertising injury. Use
of any CGL form covering defense costs within the limits of insurance
requires the prior written consent of the City.
2. Business Automobile Liability
a. Limits of insurance not less than:
(i) $1,000,000 Combined Single Limit- Bodily Injury &
Property Damage
b. Business Automobile coverage must include coverage for liability
arising out of all owned, leased, hired, and non-owned
automobiles.
C. The City shall be included as an additional insured on the Business
Automobile policy.
3. Workers Compensation and Employers Liability
a. Employers Liability Insurance limits must be at least the statutory
requirement of the State of California
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4. Aviation/Hangar Keeper's Liability [If Applicable Only]
a. Limits of insurance not less than:
(i) $2,000,000 Each Occurrence Limit
(ii) $4,000,000 Annual Aggregate
b. The City shall be included as an Additional Insured on the
Aviation/Hangar Keeper's Liability policy
5. Aircraft Liability [If Applicable Only]
a. Limits of insurance not less than:
(i) $1,000,000 Combined Single Limit- Bodily Injury and
Property Damage
B. Consultants/Professional Services
The professional shall secure the minimum coverage described below:
1. Coinmercial General Liability(CGL)
a. Limits of insurance not less than:
(i) $1,000,000 Each Occurrence Limit
(ii) $1,000,000 Personal&Advertising Injury Limit
(iii) $2,000,000 Annual Aggregate Limit
(iv) $2,000,000 Products-Completed Operations Limit.
b. CGL coverage shall be written on ISO Occurrence form CGO0011093 or a
substitute form providing equivalent coverage and shall cover liability arising from
premises, operations, independent contractors, products-completed operations, and
personal and advertising injury. Use of any CGL form covering defense costs
within the limits of insurance requires the prior written consent of the City.
C. The City shall be included as an additional insured. The vendor/supplier
must also cause its policy to be amended to provide that the coverage afforded to
the additional insured is primary to and noncontributing with any other insurance,
self-insurance or deductible amount maintained by or provided to the additional
insured. Attached to each certificate of insurance shall be a copy of the additional
insured endorsement that is part of the vendor/supplier's CGL, as well as a copy of
the policy's endorsement providing coverage to the additional insured on a primary
and non-contributing basis.
2. Business Automobile Liability
a. Limits of insurance not less than:
(i) $1,000,000 Combined Single Limit, for Bodily Injury & Property
Damage
b. Business Automobile coverage must include coverage for liability arising
out of all owned, leased,hired and non-owned automobiles.
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C. The City shall be included as an additional insured on the Business
Automobile policy.
3. Workers Compensation and Employers Liability:
a. Employers Liability Insurance limits of at least the statutory requirement
of the State of California.
b. Contractor shall provide a Waiver of Subrogation in favor of City for
workers' compensation per a separate endorsement.
4. Professional Liability:
a. Professional Liability limits of at least than:
(i) $1,000,000 Per Claim Made
(ii) $2,000,000 Annual aggregate.
b. If coverage is written on a claims-made form, the retroactive date on the
policy shall be earlier than the date services are first performed for the City and
coverage shall be maintained for 3 years after the last date services are performed
for the City.
C. Special Events/Pernits:
The licensee shall secure the minimum insurance coverage described below:
1. Commercial General Liability(CGL)
a. Limits of insurance not less than:
(i) $1,000,000 Each Occurrence
(ii) $2,000,000 Annual Aggregate [Only if the event exceeds
one(1) day]
b. The City shall be included as an additional insured.
2. Liquor Liability:
a. Limits of insurance not less than:
(i) $1,000,000 Each Occurrence
b. The City shall be included as an additional insured.
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D. Contractors Tier 1
Contracted Operations designated as Tier 1
Air Conditioning(HVAC) Systems (installation) Electric Light or Power Line Construction Pipeline Construction
Airport Runways(paving,repaving,etc.) Elevator Work Roofing
Blasting Operations Excavation Sandblasting
Bridge or Elevated Highway Construction Fire Suppression Systems(installation) Sewer and Water Main Construction
Buildings Structural Work(including elevators) Gas Mains or Connections Construction Sign Erection(streets)
Building Structure(raising or moving) Geophysical Exploration Solar Energy
Cable Installation in Conduits and Conduit Grading of Land Street Cleaning
Construction(streets)
Caisson or Cofferdam Work Hazardous Materials Contractors Street or Road Construction
Dam or Reservoir Construction Irrigation or Drainage Construction Tank Construction,Installation,Erection
or Repair
Demolition (structures) Landscape Construction(street or street Telephone or Cable Line Construction
medians)
Drilling Painting(exterior greater than single story) Tree Pruning,Dusting,Spraying or
Removal
The contractor shall secure the miniinum insurance coverage described below:
1. Commercial General Liability (CGL)
a. Limits of insurance not less than:
(i) $1,000,000 Each Occurrence Limit
(ii) $1,000,000 Personal& Advertising Injury Limit
(iii)$2,000,000 Annual Aggregate Limit
(iv)$2,000,000 Products-Completed Operations Limit.
b. The General Aggregate Limit shall apply separately to each project.
c. CGL coverage shall be written on ISO Occurrence form CG00011093 or a substitute
form providing equivalent coverage and shall cover liability arising from premises,
operations, independent contractors, products-completed operations, and personal and
advertising injury. Use of any CGL form covering defense costs within the limits of
insurance requires the prior written consent of the contractor.
d. The City shall be included as an additional insured on the CGL, using ISO Additional
Insured Endorsement CG20101185 or an endorsement providing equivalent coverage
to the additional an insured. Contractor must also cause its policy to be amended to
provide that the coverage afforded to the additional insured is primary to and non-
contributing with any other insurance, self-insurance or deductible amount
maintained by or provided to the additional insured. Attached to each certificate of
insurance shall be a copy of the additional 'insured endorsement that is part of the
Contractor's CGL, as well as a copy of the policy's endorsement providing coverage
to the additional insured on a primary and non-contributing basis.
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e. Claims Made/Self-Insurance Provisions. Contractor shall not provide general liability
insurance under any Claims-Made General Liability form without express prior
written consent of the City. Any self-insurance program providing coverage in excess
of$25,000 per occurrence requires the prior written consent of the City.
f. If a contractor's scope of work includes work within 50 feet of any railroad, the
contractor's CGL policy shall be endorsed to delete the Contractual Liability
exclusion for work performed within 50 feet of a railroad. A copy of such
endorsement shall be provided to the City prior to corrlrmencement of such work.
2. Business Automobile Liability:
a. Business Automobile Liability with limits of at least
(i) $1,000,000 Combined Single Limit, for Bodily Injury&Property Damage
b. Business Automobile coverage must include coverage for liability arising out of all
owned, leased, hired and non-owned automobiles.
c. The City shall be included as an additional insured on the Business Automobile
policy.
3. Commercial Umbrella:
a. Umbrella limits must be at Ieast $5,000,000.
b. Umbrella coverage must include as insureds all entities that are additional insureds on
the CGL.
c. Umbrella coverage for such additional insured shall apply as primary before any other
insurance or self-insurance, including any deductible, maintained by, or provided to,
the additional insured other than the CGL, Automobile Liability and Employers
Liability coverages maintained by the contractor.
4. Workers Compensation and Employers Liability:
a. Employers Liability Insurance limits of at least:
(i) $1,000,000 per occurrence for bodily injury by accident
(ii) $1,000,000 each employee for bodily injury by disease
(iii)$1,000,000 policy limit bodily injury by disease.
b. The Contractor shall provide a waiver of subrogation in favor of City for workers'
compensation per a separate endorsement
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5. Pollution Policy (Hazardous Materials)
a. If a contractor and/or its subcontractors or suppliers performs remediation of
hazardous material, or if their operations create an exposure to hazardous materials as
those terms are defined in federal, state, or local law, the contractor and its
subcontractors and suppliers must obtain a "Contractor's Pollution Liability" policy
providing coverage for Bodily Injury, Personal Injury, and Property Damage with
limits not less than:
(i) $1,000,000 Per Occurrence
(ii) $2,000,000 Aggregate
b. The City shall be included as an additional insured on the Pollution policy.
If a contractor or its subcontractors or suppliers hauls hazardous material (including,
without limitation, waste), they must carry Automobile Liability insurance with a
$1,000,000 Combined Single Limit for Bodily Injury and Property damage applicable
to all hazardous waste hauling vehicles, and include MCS 90 and CA9948.
E. Contractors Tier 2
Contracted Operations designated as Tier 2
Air Conditioning(HVAC) Systems Carpentry(building interiors) Fire Suppression Systems(service and
(service and repair) repair)
Alarms and Alarm Systems Communications Equipment Installation Landscape Construction
(interior)
Buildings Interior Work(service,repair Driveway,Parking Area or Sidewalk(paving Painting(exterior)
and non-structural remodeling) or repaving)
Cable Installation in Conduits(buildings) Fence Erection
The contractor shall secure the minimum insurance coverage described below:
1. Commercial General Liability (CGL)
a. Limits of insurance not less than:
(i) $1,000,000 Each Occurrence Limit
(ii) $1,000,000 Personal &Advertising Injury Limit
(iii)$2,000,000 Annual Aggregate Limit
(iv)$2,000,000 Products-Completed Operations Limit.
b. The General Aggregate Limit shall apply separately to each project.
c. CGL coverage shall be written on ISO Occurrence form CG00011093 or a substitute
form providing equivalent coverage and shall cover liability arising from premises,
operations, independent contractors,products-completed operations, and personal and
advertising injury. Use of any CGL form covering defense costs within the limits of
insurance requires the prior written consent of the contractor.
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d. The City shall be included as an additional insured on the CGL, using ISO Additional
Insured Endorsement CG20101185 or an endorsement providing equivalent coverage
to the additional an insured. Contractor must also cause its policy to be amended to
provide that the coverage afforded to the additional 'insured is primary to and non-
contributing with any other insurance, self-insurance or deductible amount
maintained by or provided to the additional insured. Attached to each certificate of
insurance shall be a copy of the additional insured endorsement that is part of the
Contractor's CGL, as well as a copy of the policy's endorsement providing coverage
to the additional insured on a primary and non-contributing basis.
e. Claims Made/Self-Insurance Provisions. The contractor shall not provide general
liability insurance under any Claims-Made General Liability form without express
prior written consent of the City. Any self-insurance program providing coverage in
excess of$25,000 per occurrence requires the prior written consent of the City.
f: If a contractor's scope of work includes work within 50 feet of any railroad, the
contractor's CGL policy shall be endorsed to delete the Contractual Liability
exclusion for work performed within 50 feet of a railroad. A copy of such
endorsement shall be provided to the City prior to commencement of such work.
2. Business Automobile Liability:
a. Business Automobile Liability with limits of at least
(i) $1,000,000 Combined Single Limit, for Bodily Injury&Property Damage
b. Business Automobile coverage must include coverage for liability arising out of all
owned, leased, hired and non-owned automobiles.
c. The City shall be included as an additional insured on the Business Automobile
policy.
3. Commercial Umbrella:
a. Umbrella limits must be at least $5,000,000.
b. Umbrella coverage must include as insureds all entities that are additional insureds on
the CGL.
c. Umbrella coverage for such additional insured shall apply as primary before any other
insurance or self-insurance, including any deductible, maintained by, or provided to,
the additional insured other than the CGL, Automobile Liability and Employers
Liability coverages maintained by the Contractor.
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4. Workers Compensation and Employers Liability:
a. Employers Liability Insurance limits of at least the statutory requirement of the State
of California.
b. Contractor shall provide a Waiver of Subrogation in favor of The City of Redlands
for Workers' Compensation per a separate endorsement.
5. Pollution Policy (Hazardous Materials)
a. If a contractor and/or its subcontractors or suppliers performs remediation of
hazardous material, or if their operations create an exposure to hazardous materials as
those terms are defined in federal, state, or local law, the contractor and its
subcontractors and suppliers must obtain a "Contractor's Pollution Liability" policy
providing coverage for Bodily Injury, Personal Injury, and Property Damage with
limits not less than:
(i) $1,000,000 Per Occurrence
(ii) $2,000,000 Aggregate
b. The City shall be included as an additional insured on the Pollution policy.
If a contractor or its subcontractors or suppliers haul hazardous material (including,
without limitation, waste), they must carry Automobile Liability insurance with a
$1,000,000 Combined Single Lu-nit for Bodily Injury and Property damage applicable
to all hazardous waste hauling vehicles, and include MCS 90 and CA9948.
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Section 5. Coverage Exemption Procedure. This procedure will be followed to grant
applicants exemption from having to evidence certain coverages required under the City's
Insurance Requirements. The process will require that the applicant complete and submit an
Insurance Coverage Exemption Fonn and submit it to Human Resources/ Risk Management for
consideration.
A. Exemptions granted by Risk Analyst or Risk Manager
• Business Automobile
• Workers' Compensation
B. Exemptions granted by HR Director or City Manager.
• Coimnercial Umbrella
• General Liability
• Pollution
• Professional Liability
ADOPTED, SIGNED AND APPROVED this 7t1i day of July, 2015.
Paul W. Foster, Mayor
ATTEST:
Sa Irwin, it Clerk
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I, Sam Irwin, City Clerk, City of Redlands, hereby certify that the foregoing resolution was duly
adopted by the City Council at a regular meeting thereof held on the 7°i day of July, 2015, by the
following vote:
AYES: Councilmembers Harrison, Gilbreath, Barich, James; Mayor Foster
NOES: None
ABSENT: None
ABSTAIN: None
Sam Irwin, City Clerk
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