Article I.

General Insurance Requirements

All individuals, contractors, agencies, and organizations conducting business either for the City of El Cajon or pursuant to an ordinance, resolution, agreement or policy requiring the maintenance of liability insurance shall provide proof of liability insurance in compliance with this policy.

Contractors shall procure and maintain insurance for the duration of the contract insuring against claims for injuries to persons or damages to property that may arise from or in connections with performance of the work and results of that work by the contractor, agents, representatives, employees or subcontractors. Maintenance of proper insurance coverage is a material term of any contract with the City and failure to maintain or renew coverage or to provide evidence of renewal may be treated as a material breach of contract.

MINIMUM SCOPE OF INSURANCE

Except as otherwise required by Articles II or III of this policy, the following minimum amounts of insurance are required:

Commercial General Liability (CGL): Insurance Services Office (ISO) Form CG 00 01 covering CGL on an “occurrence” basis, including products and completed operations, property damage, bodily injury and personal & advertising injury with limits no less than $1,000,000 per occurrence. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this project/location (ISO CG 25 03 05 09 or 25 04 05 09) or the general aggregate limit shall be twice the required occurrence limit.

Workers’ Compensation: as required by the State of California, Statutory Limits.

Other Insurance Provisions

Additional Insured Status 

The City of El Cajon, and its elected and appointed officials, officers, employees and volunteers are to be covered as additionally insureds on the CGL policy with respect to liability arising out of work or operations performed by or on behalf of the Contractor including materials, parts or equipment furnished in connection with such work or operations. If the contract involves the El Cajon Housing Authority, the additional insured endorsement shall include both the City and the Housing Authority, with appropriate modifications to pronouns.  General liability coverage can be provided in the form of an endorsement to the Contractor’s insurance. Acceptable endorsements must be as broad as the most recent version(s) of ISO Form(s):

  • CG 20 10 (ongoing operations)

and/or

  • CG 20 37 (completed operations) or Form CG 20 10 11 85 (ongoing and completed operations)

Additional Insured endorsements are not required for workers’ compensation and professional liability policies.

Primary Coverage 
For any claims related to contracts, the Contractor’s insurance coverage shall be primary insurance coverage at least as broad as ISO CG 20 01 04 13 as respects to the City of El Cajon, and its elected and appointed officials, officers, employees and volunteers. Any insurance or self-insurance maintained by the City, its elected and appointed officials, officers, employees and volunteers shall be excess of the Contractor’s insurance and shall not contribute with it.

Notice of Cancellation
Each insurance policy required shall provide that coverage shall not be canceled, except with not less than 10 days’ written notice to the City of El Cajon.

Workers’ Compensation Waiver of Subrogation
Contractor shall grant to the City of El Cajon a waiver of any right to subrogation which any insurer of said contractor may acquire against the City by virtue of the payment of any loss under such insurance. Contractor agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation, but this provision applies regardless of whether or not the City has received a waiver of subrogation endorsement from the insurer.

Self-Insured Retentions
Self-insured retentions must be declared to and approved by the City of El Cajon. The City may require the contractor to purchase coverage with a lower retention or provide proof of ability to pay losses and related investigations, claim administration, and defense expenses within the retention.

Claims-Made Policies
If any of the required policies provide claims-made coverage:

  1. The Retroactive Date must be shown, and must be before the date of the contract or the beginning of contract work.
     
  2. Insurance must be maintained and evidence of insurance must be provided for at least five (5) years after completion of the contract of work.
     
  3. If coverage is canceled or non-renewed, and not replaced with another claims-made policy form with a Retroactive Date prior to the contract effective date, the contractor must purchase “extended reporting” coverage for a minimum of five (5) years after completion of work.

Admitted Carrier: 
Insurance is to be placed with insurers authorized to conduct business in the State of California with a current AM Best rating of no less than A-:VII, unless otherwise acceptable to the City.

Non-Admitted Carriers: 
Exceptions to the “admitted” requirement may be considered when a non-admitted insurance carrier meets all other standards herein and:

  1. Is listed on the current California Department of Insurance Lists of Approved Surplus Line Insurers (LASLI),


                      or

  2. Is a party to a co-operation agreement with foreign insurance regulatory authorities acceptable to the City Manager or City Attorney (e.g. Lloyds of London);

a. Either the carrier or its parent company has an AM Best’s rating of A-, Class XII;

b. Has ten years or more experience in the business of insurance; and,

c. If applicable, the reinsurance carrier has a qualified rating. 

An exception to the rating requirement may be made for the California State Compensation Insurance Fund.

Verification of Coverage
Contractor shall furnish the City of El Cajon with certificates and amendatory endorsements or copies of the applicable policy language affecting coverage required by this clause. All certificates and endorsements are to be received and approved by the City before work commences. However, failure to obtain the required documents prior to work beginning shall not waive the Contractor’s responsibility to insure against City losses under the contract nor their obligation to provide the documents. The City reserves the right to require and approve complete copies of all required insurance policies, including certificates and endorsements required by these specifications, at any time.

Special Risks or Circumstances
The City of El Cajon reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances. The City may also require other policies (e.g. Automobile, Professional Liability (Errors and Omissions), Builder’s Risk, and Garage Keepers).

Alternative Risk Management Practices
Alternative risk management practices, such as self-insurance, risk pooling, risk retention groups, and other such programs, may be accepted in lieu of commercial insurance policies provided that the coverage meets the requirements of this Policy. Any such alternative risk management practices must meet the financial strength and surplus requirements reflected by the AM Best’s Ratings required of commercial insurance under this Policy.