Neither party shall be liable for incidental or consequential loss, or damages to persons or property including, but not by way of limitation, the right to be paid for loss of time, loss of services, loss of production, lost profits, lost business, lost savings or other economic or business loss or claims of any kind whatsoever, arising out of or a consequence of the services performed.
‘We hereby certify that these goods were produced in compliance with all applicable requirements of Sections 6, 7, and 12 of the Fair Labor Standards Act, as amended, and of regulations and orders of the United States Department of Labor, issued under Section 14 thereof.’
All insurance is to be issued by companies designated by A.M. Best Company with a rating of A (VIII) or better. LCE reserves the right to review certified copies of any and all insurance policies to which this Subcontract is applicable. Insurance certificates, written on a standard ACORD form, and a copy of the additional insured endorsement, must be received by LCE prior to commencement of Work. If Subcontractor should subcontract any of this work to a third party, Subcontractor shall see to it that such third party maintains insurance as required herein and shall furnish evidence thereof to LCE. All coverages obtained by Subcontractor shall be on an occurrence policy form and not on claims made policy form except professional.
Insurance policies required:
- Commercial General Liability Insurance. Subcontractor shall obtain and maintain Commercial General Liability Insurance, on an occurrence form (ISO form CG 00 01) for the hazards of (i) subcontractors and sub-subcontractors, (ii) independent contractors, (iii) products and completed operations, (iv) explosion, collapse and underground, and (v) contractual liability insuring the indemnities set forth in the Subcontract. Each Project shall have minimum limits of $1,000,000 per occurrence and if a general aggregate limit applies, the general aggregate limit shall apply separately to the project/location utilizing endorsements, ISO CG 25 03 and/or 25 04 or equivalent. If the Subcontractor is performing work on a vessel then marine general liability including ship repair legal liability is required, subject to all the provisions as stated above as appropriate for marine liability.
- Comprehensive Automobile Liability Insurance. Subcontractor shall maintain comprehensive automobile insurance, including contractual liabilities insuring the indemnities set forth in this subcontract covering all owned, non-owned and hired automobiles, collectively referred to as “any auto”, used in connection with the services or other work hereunder and shall have minimum bodily injury and property damage limits of $1,000,000 combined single limit per occurrence.
- Workers’ Compensation and Employer’s Liability Insurance.
Applicability*: USL&H – coverage for employees of Subcontractor when Subcontractor is working on navigable waters of the U.S. including any adjoining pier, wharf, dry dock, terminal, building way, marine railway, or other adjoining area customarily used by an employer in loading, unloading, repair, dismantling or building a vessel.
Applicability: MEL – coverage for any Subcontractor when Subcontractor is working on navigable waters when a vessel is underway, the Subcontractor spends more than 30%, subject to applicable exceptions, of their time working as such and the Subcontractor is or can be construed as a crewman.
Applicability: DBA – coverage for employees of Subcontractors when Subcontractor is working on public sector projects outside the U.S. This includes work on and off military bases outside the U.S.
- Excess Liability: Subcontractor shall maintain Excess Liability coverage on an umbrella form with minimum limits of $5,000,000 per occurrence and $5,000,000 per project aggregate. Said policy shall be as broad as primary.
- Professional Liability Errors and Omissions Insurance and/or Tech E&O including cyber liability as appropriate to the Consultant’s profession and work hereunder, with limits not less than $2,000,000 per occurrence and $2,000,000 in the aggregate covering claims arising out of the performance and/or furnishing of Professional Services and for claims arising out of allegations of errors, omissions or negligent acts in connection with the subcontract.
- Contractors’ Pollution Legal Liability (if project involves environmental hazards) with limits no less than $2,000,000 per occurrence or claim, and $2,000,000 policy aggregate written on a form reasonably acceptable to LCE.
- Property: Any property the Subcontractor utilized whether rented, owned or borrowed, in relation to this agreement shall be insured by the Subcontractor.
- Limits: The Insurance obligations under this agreement shall be 1) all the Insurance coverage and/or limits carried by or available to the Contractor; or 2) the minimum Insurance coverage requirements and/or limits shown in this agreement; whichever is greater. Any insurance proceeds in excess of or broader than the minimum required coverage and/or minimum required limits, which are applicable to a given loss, shall be available to LCE. No representation is made that the minimum Insurance requirements of this agreement are sufficient to cover the obligations of the Contractor under this agreement.
- Privity: Any necessary coverages in favor of any entities/additional insureds and or with respect to any other coverages required by this contract with whom the Subcontractor is not in privity of contract or with whom the insured does not have a direct written agreement, shall specifically state the names of those parties with whom the Insured is not in privity of contract and/or include broadly worded endorsements specifically evidencing the intent to make such parties eligible for coverage under the subject policies.
Insurance policy provisions applicable to all insurance coverage required herein unless specified otherwise below:
- Additional Insured: Subcontractor furnished insurance (except Workers’ Compensation; and, professional which shall be limited to vicarious liability (Professional policies shall not contain a cross suits exclusion which could invalidate coverage due to any insured vs. Insured condition and or similar condition when additional insured coverage is provided) shall include LCE and all their assigns, subsidiaries and affiliates as additional insureds as their respective interest may appear. The coverage afforded the additional insureds must provide coverage at least equal to that of ISO forms CG 20 10 & CG 20 37 ed. (04/01). (ii) Primary and non-contributory: any coverage carried by Contractor and/or Owner will be excess of Subcontractor’s coverage. All policies including umbrella policies shall be endorsed to include a Primary and non-contributory condition. Stating follow form for umbrella policies is not acceptable unless a copy of the umbrella is attached evidencing such follow form status. (iii) Waiver of Subrogation: All insurance policies supplied shall include a waiver of any right of subrogation, as allowed by law, of the insurers there under against LCE and all its assigns, subsidiaries, affiliates, employees, insurers and underwriters on form CG 24 04 12 19 or equivalent. The waiver of subrogation required for all insurance policies provided shall not include any restrictions relative to negligence or injuries resulting to employees of Subcontractor or its sub-subcontractors. (iv) Notice: Subcontractor shall furnish evidence of the above insurance in the form of certificates within 5 days of the execution of this subcontract agreement. The policies providing the above insurance shall contain a provision whereby no reduction in coverage amount, modification in any material respect, cancellation or non-renewal can occur without notification to LCE. The notice shall be deemed to have been sufficiently given if and when received by the party to be notified as set forth below:
*The applicability guidelines are for illustrative purposes only and each subcontractor should check with their agent for your actual applicability based upon your specific scope of activities.