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Insurance Requirements

Supplier agrees to maintain in full force and effect at all times while it has any obligations remaining under this agreement, policies of insurance written as primary coverage and not contributing with or in excess of any coverage which (YOUR COMPANY NAME) may carry. These policies will be issued by an insurance carrier acceptable to (YOUR COMPANY NAME) with a Best's rating of at least A, X which affords the following:

  1. Commercial General Liability Insurance, including coverage for Bodily Injury, Property Damage, Personal Injury, Advertising injury, Contractual Liability, Products and Completed Operations and shall cover all liability from premises, operations, independent contractors, products-completed operations, in an amount not less than $1,000,000 per occurrence. Products and Completed operations coverage will be continued for two (2) years following date of acceptance by (YOUR COMPANY NAME). A claims made policy is not permitted. If such Commercial General Liability insurance contains a general aggregate limit, it shall apply separately to the job/project.

  2. Business Automobile Liability Insurance, including Owned, Non-owned and Hired Car coverage in an amount not less than $1,000,000 per occurrence, Combined Single Limit for Bodily Injury and Property Damage.
    Note: If the contract documents require the contractor/vendor to remove and haul hazardous waste from the site, or if the site involves similar environmental exposure, Endorsement (CA 99 48) Pollution Liability-Broadened coverage for Covered Autos should be requested.

  3. Workers' Compensation Insurance in Statutory amounts and Employer’s Liability Insurance in an amount not less than $500,000 per occurrence.

  4. Umbrella Excess Liability Insurance in an amount not less than $1,000,000 per occurrence, Combined Single Limit. (The Umbrella requirement can be waived if the Commercial General Liability Policy provides $2 million in limits).

Section III – General Provisions

Supplier agrees to deliver to (YOUR COMPANY NAME), within ten (10) days of the date of this agreement and annually thereafter, Certificates of Insurance (See Exhibit A for a sample) evidencing the above coverage’s with limits not less than those specified above. Such Certificates, with the exception of Workers' Compensation Insurance, will confirm that each policy (#1, 2, and 4 above) has been endorsed to name (YOUR COMPANY NAME), its officers, directors and employees as additional insured and contain a Waiver of Subrogation under the Workers’ Compensation, Business Automobile and Commercial General Liability Insurance Policies in favor of (YOUR COMPANY NAME).

If the supplier’s liability policies do not contain the standard separation of insured provision, or a substantially similar clause, they shall be endorsed to provide cross liability coverage.

Further, all Certificates shall expressly provide that not less than thirty (30) days prior written notice be given (YOUR COMPANY NAME) in the event of a material alteration to or cancellation of the coverage’s evidenced by such certificates with no disclaimer. The limits of insurance required shall not limit the supplier’s liability under the Indemnity provision. Failure by (YOUR COMPANY NAME) to receive or request such Certificates does not represent a waiver of the requirements for insurance coverage noted above.

If such Certificates are not delivered in accordance with the foregoing, (YOUR COMPANY NAME) shall have the right to cancel this agreement, and any monies paid by (YOUR COMPANY NAME) prior to such cancellation shall be returned to (YOUR COMPANY NAME).

Other Considerations

The above provisions are provided, as general minimum guidelines for insurance provisions needed to protect PNA and Affiliated or Subsidiary Company interests. Depending on the exact nature of the agreement between PNA or an Affiliate/Subsidiary and the outside supplier as well as the work and risk involved, the following additional insurance provisions, higher limits or coverage should be considered and may be required:

  1. Umbrella Excess Liability Insurance/Higher Liability Limits.

  2. Professional Liability/Architect-Engineers Insurance should be required with a policy limit of not less than $1,000,000 per occurrence (higher limits may be required depending on the design, project or construction involved).

  3. Provisions to require the contractor/vendor to carry a Performance & Payment Surety Bond at Contract Value.

  4. Provisions to require a Fidelity Bond (with third party coverage including customers/clients as loss payees) to insure the honesty of contractor/vendors' employees. (Ex: Security contractor/vendor).

  5. Consideration should be given to including the following language in an agreement with a third party consultant providing professional advice and services: “Consultant shall maintain in force for the duration of this contract Professional Liability/Errors and Omissions Insurance, which shall apply to liability for a professional error, act, or omission arising out of the scope of the Consultant's services as defined in this contract. Coverage shall be written subject to limits of not less than $ 1,000,000 per loss. If coverage is written on a claims-made basis, the Consultant warrants that any retroactive date applicable to coverage under the policy precedes the effective date of this contract; and that continuous coverage will be maintained or an extended discovery period will be exercised for a period of 2 years beginning from the time that work under the contract is completed.”
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