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GENERAL CONDITIONS – ADDENDUM A
GENERAL INSURANCE REQUIREMENTS
Unless otherwise specified in the solicitation or procurement, the following Insurance
Requirements shall apply. These Insurance Requirements establish minimum types and limits of
insurance coverage for many contract situations entered into by State. It is possible that certain
contract exposures are not addressed. Risk management and insurance questions regarding any
Contract to be entered into by State, including any that may be deemed “high-risk procurement”
(i.e., either by amount of the procurement or solicitation and/or Contract Party’s scope of services)
should be reviewed with State Risk Management personnel at (401) 222-6200.
Schedule A1: General Requirements
Schedule A2: Professional Services
Schedule A3: Information Technology
Schedule A4: Public Works
Schedule A5: Department of Transportation Projects
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Schedule A1 – General Requirements
Definitions
“State:” The State of Rhode Island and its branches, departments, agencies, offices,
commissions, any using entity authorized by R.I. Gen. Laws § 37-2-1, et seq., to participate in a
procurement or solicitation and any other party directed by the State and the officers, directors,
officials, agents, employees, independent contractors and volunteers of any of them.
“Contract Party:” Any person, organization or entity that is a Contract Party with State in which
the Contract Party (i.e., vendor) provides services or products to State. Contract Party shall also
include as insured persons Contract Party’s officers, directors, officials, agents, employees,
subcontractors, independent contractors, volunteers and any other entity or person for which the
Contract Party is legally responsible. For purposes of this document, Contract Party does not
include any branches, departments, agencies, offices, or commissions of the State that may
contract with any other State branches, departments, agencies, offices, or commissions.
Required Insurance
Contract Party shall procure Required Insurance as defined herein:
a. At the sole cost and expense of Contract Party.
b. Obtain and maintain such Required Insurance in full force and effect during the entire
term of the Contract until all obligations of Contract Party have been discharged, including
any warranty periods or extended reporting periods, against claims that may arise out of,
are alleged to arise out of, directly or indirectly, in whole or in part, from or in connection
with the Contract and/or result from the performance of the Contract.
c. Any deductible, self-insured retention, or form of self-insurance under the policies shall be
the sole responsibility of the Contract Party and shall be disclosed to and acceptable to
the State authorized personnel.
d. Any required liability insurance policy that is to insure any form of products liability and/or
completed operations exposure created by Contract Party must provide extended
coverage as follows:
1. When required liability insurance policy uses “Occurrence” coverage trigger (including
that known as “Reported Occurrence”):
a. Policy issued by same insurer for Contract Party as of effective date of Contract
between State and Contract Party or by comparable insurer providing renewal
insurance policy of 1-same coverage terms and conditions of prior expired
policy or 2-coverage at least equal to that required by Contract.
b. Such coverage must be provided for a period of not less than five (5) years
after the later of:
i. when the Contract has ended; or
ii. when products or services have been put to intended use; or
iii. when hardware, software, buildings, other physical structures or repairs
have been put to intended use.
c. Such required insurance can be provided by annual insurance policies or by
single runoff policy commonly referred to as “discontinued products or
operations.”
2. When required liability insurance policy uses any form of “claims-first made trigger:”
a. Policy issued by same insurer for Contract Party as of effective date of
Contract between State and Contract Party or by comparable insurer
providing renewal insurance policy of 1-same coverage terms and conditions
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of prior expired policy or 2-coverage at least equal to that required by
Contract.
b. Provide coverage with a retroactive date on or before the effective date of the
Contract or at the beginning of Contract work.
c. Such coverage must be provided for a period of not less than five (5) years
after the later of:
i. when the Contract has ended; or
ii. when products or services have been put to intended use; or
iii. when hardware, software, buildings, other physical structures or
repairs have been put to intended use.
d. Such required insurance can be provided by annual insurance policies or by
single runoff policy commonly referred to as “discontinued products or
operations.”
e. If “claims-first made” liability insurance policy is cancelled or not renewed, and not
replaced with another claims-made policy form with a retroactive date prior to the Contract
date, the Contract Party must purchase extended reporting coverage for a minimum of
five (5) years after completion of work.
f. Required Insurance limits to be provided by single insurance policy or through “follow
form primary” layered excess insurance policies to obtain overall required limit(s).
g. Contract Party’s subcontractors to maintain same insurance.
h. Any insurance obtained by Contract Party that includes an “insured vs. insured” exclusion
must be revised to exclude State as Additional Insured.
i. State Purchasing Agent reserves the right to consider and accept alternative forms and
plans of insurance or to require additional more extensive coverage for any individual
requirement and can modify types of insurance and revise limits required of Contract Party
at any time during the term of this Contract.
Required Insurance:
1. Commercial General Liability Insurance. Commercial General Liability Insurance (“CGL”)
based on Insurance Services Office (“ISO”) most recent version of Commercial General
Liability policy form CG00 01, or its equivalent:
a. Covering bodily injury (including death), broad form property damage, personal and
advertising injury, independent contractors, products and completed operations and
contractual liability.
b. Such insurance coverage is subject to a minimum combined single limit of $1,000,000
per occurrence, $1,000,000 general aggregate and $1,000,000 products/completed
operations aggregate.
c. The general aggregate must be on a “per project” or “per location” basis.
d. Shall include waiver of subrogation in favor of State.
e. Include State as additional insured on a primary and non-contributory basis.
f. The Contract Party shall submit a copy of any policy endorsement, or blanket
endorsement, evidencing the State as additional insured1 on a primary and non-
contributory basis and a waiver of subrogation in favor of State. All endorsements shall
be subject to review and approval by the authorized State personnel.
2. Automobile Liability Insurance. Automobile Liability Insurance based on ISO most recent
version of Business Automobile Policy (“BAP”) CA 00 01, or its equivalent:
a. Covering bodily injury and property damage for any vehicles used in conjunction with
the performance of this Contract including owned, non-owned, and hired vehicles.
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Any time Contract Party is responsible for construction of any kind the additional insured status for State shall
include additional Insured-products/completed operations in addition to additional insured-premises/operations.
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b. If a Contract Party does not own any vehicle at any time during the duration of this
Contract then the Contract Party can seek hired and non-owned automobile coverage
as provided by BAP or by hired non-owned automobile coverage endorsement to CGL.
c. At a minimum Contract Party must maintain hired and non-owned automobile
coverage for the full duration of this Contract.
d. Such insurance coverage is subject to a minimum combined single limit of $1,000,000
per occurrence.
e. Shall include waiver of subrogation in favor of State.
f. Include State as additional insured on a primary and non-contributory basis.
g. The Contract Party shall submit a copy of any policy endorsement, or blanket
endorsement, evidencing the State as additional insureds on a primary and non-
contributory basis and a waiver of subrogation in favor of State. All endorsements
shall be subject to review and approval by the authorized State personnel.
3. Workers’ Compensation and Employers’ Liability.
a. Statutory coverage as required by the workers’ compensation laws of the State of
Rhode Island, plus any applicable state law other than State of Rhode Island if
employee(s) state of hire is other than State of Rhode Island or employee(s) work
related to the Contract is not in the State of Rhode Island.
b. Policy form based on NCCI or its equivalent.
c. Employers’ Liability with minimum limits of $100,000 each accident, $100,000 disease
or policy limit and $100,000 each employee or minimum amount necessary for
umbrella/excess liability policy of Contract Party.
d. A Contract Party neither eligible for, nor entitled to, Worker’s Compensation who is an
independent Contract Party under Rhode Island law must comply with the statutory
procedure precluding an independent Contract Party from bringing a workers’
compensation claim against the State.
e. Policy to include waiver of subrogation in favor of State.
f. The Contract Party shall submit a copy of any policy endorsement or blanket
endorsement evidencing the waiver of subrogation in favor of the State. All
endorsements shall be subject to review and approval by the State authorized
personnel.
Crime insurance, as applicable to the procurement or solicitation:
4. Crime Insurance. Crime Insurance to cover dishonest acts of Contract Party that result in a
loss of any State property, including funds or securities of any kind, plus any other entity or
person’s property, including funds or securities of any kind, entrusted to the State that is in
the custody or control of the Contract Party. The policy shall:
a. Include insuring agreements for employee dishonesty, forgery/alteration, theft of money
and securities, robbery and safe burglary, money order and counterfeit currency,
computer crime and funds transfer fraud.
b. Include an endorsement for “Client’s Property” using ISO form CR04010813 or the
equivalent;
c. Have minimum combined limits of not less than $500,000 per occurrence; however, in
no instance shall the combined limits be less than fifty per cent (50%) of the value of
the Contract or based on the amount of funds that may be diverted, whichever is
greater.
d. Name State as loss payee based on ISO CR20141010 or the equivalent.
e. Not contain a condition requiring an arrest.
f. When Contract Party has custody of State funds in excess of $250,000 then Contract
Party must have crime coverage commonly referred to as Social Engineering Fraud
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(“SEF”) in an amount equal to Computer Crime limit and/or Fraudulent Funds Transfer
limit.
All Required Insurance shall be:
1. Placed with insurers:
a. Authorized to do business in Rhode Island and, when admitted insurers are not
possible, then use of non-admitted insurers will be allowed to the extent acceptable to
State.
b. Rated “A-,” class X or better by A.M. Best Company, Inc.
c. Any insurer with a lesser financial rating must be approved by the authorized State
personnel.
2. The legal defense provided to the State under the policy and any endorsements must be free
of any conflicts of interest, even if retention of separate legal counsel for the State is
necessary.
3. As evidence of the insurance required by this Contract, the Contract Party shall furnish to
State Certificates of Insurance, including confirmation of all required policy endorsements
including, but not limited to, additional insured endorsements:
a. In form acceptable to the State to the Department of Administration, Division of
Purchases prior to a Division of Purchases award. Failure to comply with this provision
may result in rejection of the bid offer.
b. All certificates of insurance, whenever issued, shall include the requirement of the
insurer for thirty (30) days advance written notice of cancellation or non-renewal of any
insurance policy to Department of Administration, Division of Purchases Attn:
Purchasing Agent, One Capitol Hill, Providence, RI 02908. Contract Party shall also
immediately notify the State if the Required Insurance is cancelled, non-renewed,
potential exhaustion of policy limits or otherwise changed.
c. Certificates of Insurance and required endorsements shall thereafter be submitted
annually or earlier upon expiration and renewal of any of the policies.
d. All Certificates of Insurance and to the extent possible endorsements shall reference
the State procurement number.
e. State retains the right to demand a certified copy of any Required Insurance policy,
Certificate of Insurance or endorsement.
4. The Contract Party shall be responsible to obtain and maintain insurance on any real or
personal property owned, leased or used by State that is in the care, custody or control of
Contract Party. All property insurance of Contract Party must include a waiver of subrogation
that shall apply in favor of the State.
5. No warranty is made that the coverages and limits listed herein are adequate to cover and/or
protect the interests of the Contract Party for the Contract Party’s operations. These are solely
minimums to protect the interest of State.
6. State shall be indemnified and held harmless as required by the Contract and to the full extent
of any coverage actually secured by the Contract Party in excess of the minimum
requirements set forth above.
7. The Contract Party shall use at its own risk and insure at its own cost any of its owned, leased
or used real or personal property. All such insurance of Contract Party must include a waiver
of subrogation that shall apply in favor of the State.
8. The Contract Party shall comply with any other insurance requirements including, but not
limited to, additional coverages or limits contained in the procurement or solicitation.
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9. Failure to comply with these Insurance Requirements is a material breach entitling the State
to terminate or suspend the Contract immediately.
10. These Insurance Requirements shall survive expiration or termination of the Contract.
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Schedule A2 – Professional Services
Definitions
“Professional Services:” A type of liability insurance designed to protect traditional
professionals (e.g., accountants, attorneys) and quasi-professionals (e.g., real estate brokers,
consultants) against liability incurred as a result of errors and omissions made in performing their
professional services to State. Although there are a few exceptions (e.g., physicians, architects,
and engineers), most professional liability policies only cover economic or financial losses
suffered by State as opposed to bodily injury (BI) and property damage (PD) claims. This is
because the latter two types of loss are typically covered under commercial general liability (CGL)
policies. The vast majority of professional liability policies are written with claims-made coverage
triggers. In addition, professional liability policies contain what are known as "shrinking limits,"
meaning that unlike CGL policies (where defense costs are paid in addition to policy limits), the
insurer's payment of defense costs reduces available policy limits. Accordingly, when attempting
to determine appropriate policy limits, insureds [State] must consider the fact that because
defense costs are often a high proportion of any claim settlement or judgment, they must usually
purchase additional limits. The most common exclusions in professional liability policy forms are
for BI, PD, and intentional/dishonest acts.
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“State:” The State of Rhode Island and its branches, departments, agencies, offices,
commissions, any using entity authorized by R.I. Gen. Laws § 37-2-1, et seq., to participate in a
procurement or solicitation and any other party directed by the State and the officers, directors,
officials, agents, employees, independent contractors and volunteers of any of them.
“Contract Party:” Any person, organization or entity that is a Contract Party with State in which
the Contract Party (i.e., vendor) provides services or products to State.” Contract Party shall also
include as insured persons Contract Party’s officers, directors, officials, agents, employees,
subcontractors, independent contractors, volunteers and any other entity or person for which the
Contract Party is legally responsible. For purposes of this document “Contract Party” does not
include any branches, departments, agencies, offices, or commissions of the State that may
contract with any other State departments, agencies, offices, commissions.
Required Insurance
Contract Party shall procure Required Insurance as defined herein:
a. At the sole cost and expense of Contract Party.
b. Obtain and maintain such Required Insurance in full force and effect during the entire
term of the Contract until all obligations of Contract Party have been discharged, including
any warranty periods or extended reporting periods, against claims that may arise out of,
are alleged to arise out of, directly or indirectly, in whole or in part, from or in connection
with the Contract and/or result from the performance of the Contract.
c. Any deductible, self-insured retention, or form of self-insurance under the policies shall be
the sole responsibility of the Contract Party and shall be disclosed to and acceptable to
the State authorized personnel.
d. Any required liability insurance policy that is to insure any form of products liability and/or
completed operations exposure created by Contract Party must provide extended
coverage as follows:
1. When required liability insurance policy uses “Occurrence” coverage trigger (including
that known as “Reported Occurrence”):
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Definition based on one used by International Risk Management Institute:
https://www.irmi.com/term/insurance-definitions/professional-liability.
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a. Policy issued by same insurer for Contract Party as of effective date of Contract
between State and Contract Party or by comparable insurer providing renewal
insurance policy of 1-same coverage terms and conditions of prior expired policy
or 2-coverage at least equal to that required by Contract.
b. Such coverage must be provided for a period of not less than five (5) years after
the later of:
i. when the Contract has ended; or
ii. when products or services have been put to intended use; or
iii. when hardware, software, buildings, other physical structures or repairs
have been put to intended use.
c. Such required insurance can be provided by annual insurance policies or by single
runoff policy commonly referred to as “discontinued products or operations.”
2. When required liability insurance policy uses any form of “claims-first made trigger:”
a. Policy issued by same insurer for Contract Party as of effective date of Contract
between State and Contract Party or by comparable insurer providing renewal
insurance policy of 1-same coverage terms and conditions of prior expired policy
or 2-coverage at least equal to that required by Contract.
b. Provide coverage with a retroactive date on or before the effective date of the
Contract or at the beginning of Contract work.
c. Such coverage must be provided for a period of not less than five (5) years after
the later of:
i. when the Contract has ended; or
ii. when products or services have been put to intended use; or
iii. when hardware, software, buildings, other physical structures or repairs
have been put to intended use.
d. Such required insurance can be provided by annual insurance policies or by single
runoff policy commonly referred to as “discontinued products or operations.”
e. If “claims-first made” liability insurance policy is cancelled or not renewed, and not
replaced with another claims-made policy form with a retroactive date prior to the Contract
date, the Contract Party must purchase extended reporting coverage for a minimum of
five (5) years after completion of work.
f. Required Insurance limits to be provided by single insurance policy or through “follow
form primary” layered excess insurance policies to obtain overall required limit(s).
g. Contract Party’s subcontractors to maintain same insurance.
h. Any insurance obtained by Contract Party that includes an “insured vs. insured” exclusion
must be revised to exclude State as Additional Insured.
i. State Purchasing Agent reserves the right to consider and accept alternative forms and
plans of insurance or to require additional more extensive coverage for any individual
requirement and can modify types of insurance and revise limits required of Contract Party
at any time during the term of this Contract.
Required Insurance:
1. Commercial General Liability Insurance. Commercial General Liability Insurance (“CGL”)
based on Insurance Services Office (“ISO”) most recent version of Commercial General
Liability policy form CG00 01, or its equivalent:
a. Covering bodily injury (including death), broad form property damage, personal and
advertising injury, independent contractors, products and completed operations and
contractual liability.
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b. Such insurance coverage is subject to a minimum combined single limit of $1,000,000
per occurrence, $1,000,000 general aggregate and $1,000,000 products/completed
operations aggregate.
c. The general aggregate must be on a “per project” or “per location” basis.
d. Shall include waiver of subrogation in favor of State.
e. Include State as additional insureds on a primary and non-contributory basis.
f. The Contract Party shall submit a copy of any policy endorsement, or blanket
endorsement, evidencing the State as additional insureds
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on a primary and non-
contributory basis and a waiver of subrogation in favor of the State. All endorsements
shall be subject to review and approval by the authorized State personnel.
2. Automobile Liability Insurance. Automobile Liability Insurance based on ISO most recent
version of Business Automobile Policy (“BAP”) CA 00 01, or its equivalent:
a. Covering bodily injury and property damage for any vehicles used in conjunction with
the performance of this Contract including owned, non-owned, and hired vehicles.
b. If a Contract Party does not own any vehicle at any time during the duration of this
Contract then the Contract Party can seek hired and non-owned automobile coverage
as provided by BAP or by hired non-owned automobile coverage endorsement to CGL.
c. At a minimum Contract Party must maintain hired and non-owned automobile
coverage for the full duration of this Contract.
d. Such insurance coverage is subject to a minimum combined single limit of $1,000,000
per occurrence.
e. Shall include waiver of subrogation in favor of State.
f. Include State as additional insureds on a primary and non-contributory basis.
g. The Contract Party shall submit a copy of any policy endorsement, or blanket
endorsement, evidencing the State as additional insureds on a primary and non-
contributory basis and a waiver of subrogation in favor of the State. All endorsements
shall be subject to review and approval by the authorized State personnel
3. Workers’ Compensation and Employers’ Liability.
a. Statutory coverage as required by the workers’ compensation laws of the State of
Rhode Island, plus any applicable state law other than State of Rhode Island if
employee(s) state of hire is other than State of Rhode Island or employee(s) work
related to the Contract is not in the State of Rhode Island.
b. Policy form based on NCCI or its equivalent.
c. Employers’ Liability with minimum limits of $100,000 each accident, $100,000 disease
or policy limit and $100,000 each employee or minimum amount necessary
umbrella/excess liability of Contract Party.
d. A Contract Party neither eligible for, nor entitled to, Worker’s Compensation who is an
independent Contract Party under Rhode Island law must comply with the statutory
procedure precluding an independent Contract Party from bringing a workers’
compensation claim against the State.
e. Policy to include waiver of subrogation in favor of State.
f. The Contract Party shall submit a copy of any policy endorsement or blanket
endorsement evidencing the waiver of subrogation in favor of the State. All
endorsements shall be subject to review and approval by the State authorized
personnel.
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Any time Contract Party is responsible for construction of any kind the additional status for State shall include
additional Insured-products/completed operations in addition to additional insured-premises/operations.
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4. Professional Liability Insurance.
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a. Covering any damages to State caused by any error, omission, wrongful act, or breach
of Contract in performance of Contract Party’s professional services to State.
b. Combined single limit per occurrence shall not be less than $2,000,000 and include
an annual aggregate of not less than $2,000,000.
c. Shall include waiver of subrogation in favor of State to extent coverage to Contract
Party is not impaired.
d. If Contract Party is providing services to State where Contract Party has access to
paper and/or e-data privacy/confidential information then go to Schedule A3 and
ensure appropriate cyber/privacy insurance is contained in Contract Party’s
Professional Liability Insurance. If cyber/privacy insurance is not contained in Contract
Party’s Professional Liability Insurance then refer to Schedule A3 Required Insurance
Number 5 and add this coverage in addition to Professional Liability Insurance.
Crime Insurance, Environmental/Pollution Liability Insurance, and Working with Children, Elderly
or Disabled Persons as applicable to the procurement or solicitation:
5. Crime Insurance. Crime Insurance to cover dishonest acts of Contract Party that result in a
loss of any State property, including funds or securities of any kind, plus any other entity or
person’s property, including funds or securities of any kind, entrusted to the State that is in
the custody or control of the Contract Party. The policy shall:
a. Include insuring agreements for employee dishonesty, forgery/alteration, theft of money
and securities, robbery and safe burglary, money order and counterfeit currency,
computer crime and funds transfer fraud.
b. Include an endorsement for “Client’s Property” using ISO form CR04010813 or the
equivalent.
c. Have minimum combined limits of not less than $500,000 per occurrence; however, in
no instance shall the combined limits be less than fifty per cent (50%) of the value of
the Contract or based on the amount of funds that may be diverted, whichever is
greater.
d. Name State as loss payee based on ISO CR20141010 or the equivalent.
e. Not contain a condition requiring an arrest.
f. When Contract Party has custody of State funds in excess of $250,000 then Contract
Party must have crime coverage commonly referred to as Social Engineering Fraud
(“SEF”) in an amount equal to Computer Crime limit and/or Fraudulent Funds Transfer
limit.
5. Environmental/Pollution Liability Insurance when past, present or future hazard is possible.
Environmental/Pollution Liability Insurance coverage for bodily injury, property damage and
resulting loss of use and environmental damages resulting from sudden accidental (and/or
gradual if appropriate) pollution and related cleanup costs arising out of the work or services
to be performed under the Contract:
a. If coverage is on a “claims-first made” basis then 1-any retroactive date will precede
the effective date of the Contract, and 2- remain in-force for the later period of five
years after Contract has ended and/or work by Contract Party has been put to its
intended use.
b. Per occurrence limits of no less than $1,000,000 per occurrence and $2,000,000
aggregate. The policy shall include defense including costs, charges and expenses
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Medical malpractice insurance whether for an individual practitioner such as MD, OD or DMD, hospital or nurses, is
considered a subset of Professional Liability insurance. When medical malpractice insurance may be required
consult with State Risk Management.
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incurred in the investigation, adjustment or defense of claims for such compensatory
damages.
c. Policy to include State as additional insured for work performed by Contract Party for
State to the extent coverage is not subject to an insured versus insured exclusion.
Additional insured status for State to be on a primary and non-contributory basis.
d. Shall include waiver of subrogation in favor of State.
e. Contract Party shall submit a copy of any policy endorsement, or blanket endorsement,
evidencing the State as additional insureds on a primary and non-contributory basis
and a waiver of subrogation in favor of the State. All endorsements shall be subject
to review and approval by the authorized State personnel.
For environmental engineering and consultant services, the environmental liability insurance
may be included with errors and omissions insurance and coverage if on a claims-made basis
and will remain in effect for the period of the Contract with a minimum extended reporting
period of five (5) years.
6. Working with Children, Elderly or Disabled Persons-Physical Abuse and Molestation Liability
Insurance. Physical Abuse and Molestation Insurance covering damages arising out of:
actual or threatened physical abuses; mental injury; sexual molestation; negligent hiring,
employment, or supervision; negligent investigation or reporting to proper authorities; and,
retention of any person for whom the Contract Party is responsible:
a. Coverage shall be written in an amount not less than $1,000,000 per occurrence.
b. Coverage can be provided by a separate policy or as an endorsement to the
commercial general liability or professional liability policies. The limits shall be
exclusive to this required coverage.
c. When policy uses any form of “claims-first made trigger:”
i. Remain in-force for a period of five (5) years after the Contract has ended;
ii. Provide coverage with a retroactive date on or before the Effective Date of the
Contract or at the beginning of Contract work; and,
iii. If coverage is cancelled or not renewed, and not replaced with another claims-
made policy with a retroactive date prior to the Contract date, the Contract Party
must purchase extended reporting coverage for a minimum of five (5) years after
completion of work.
d. Shall include waiver of subrogation in favor of State.
e. Policy to include State as additional insured for work performed by Contract Party for
State to the extent that coverage is not subject to an insured versus insured exclusion.
Additional insured status for State to be on a primary and non-contributory basis.
f. The Contract Party shall submit a copy of any policy endorsement, or blanket
endorsement, evidencing the State as additional insureds on a primary and non-
contributory basis and a waiver of subrogation. All endorsements shall be subject to
review and approval by the authorized State personnel.
All Required Insurance shall be:
1. Placed with insurers:
a. Authorized to do business in Rhode Island.
b. Rated “A-,” class X or better by A.M. Best Company, Inc.
c. Any insurer with a lesser financial rating must be approved by the authorized State
personnel.
2. The legal defense provided to the State under the policy and any endorsements must be free
of any conflicts of interest, even if retention of separate legal counsel for the State is
necessary.
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3. As evidence of the insurance required by this Contract, the Contract Party shall furnish to
State Certificates of Insurance, including confirmation of all required policy endorsements
including, but not limited to, additional insured endorsements:
a. In form acceptable to the State to the Department of Administration, Division of
Purchases prior to a Division of Purchases award. Failure to comply with this provision
may result in rejection of the bid offer.
b. All certificates of insurance, whenever issued, shall include the requirement of the
insurer for thirty (30) days advance written notice of cancellation or non-renewal of any
insurance policy to Department of Administration, Division of Purchases Attn:
Purchasing Agent, One Capitol Hill, Providence, RI 02908. Contract Party shall also
immediately notify the State if the Required Insurance is cancelled, non-renewed,
potential exhaustion of policy limits or otherwise changed.
c. Certificates of Insurance and required endorsements shall thereafter be submitted
annually or earlier upon expiration and renewal of any of the policies.
d. All Certificates of Insurance and to the extent possible endorsements shall reference
the State procurement number.
e. State retains the right to demand a certified copy of any Required Insurance policy.
Certificate of Insurance or endorsement.
4. The Contract Party shall be responsible to obtain and maintain insurance on any real or
personal property owned, leased or used by State that is in the care, custody or control of
Contract Party. All property insurance of Contract Party must include a waiver of subrogation
that shall apply in favor of the State.
5. No warranty is made that the coverages and limits listed herein are adequate to cover and
protect the interests of the Contract Party for the Contract Party’s operations. These are solely
minimums that have been established to protect the interest of the State.
6. State shall be indemnified and held harmless as required by the Contract and to the full extent
of any coverage actually secured by the Contract Party in excess of the minimum
requirements set forth above.
7. The Contract Party shall use at its own risk and insure at its own cost any of its owned, leased
or used real or personal property. All such insurance of Contract Party must include a waiver
of subrogation that shall apply in favor of the State.
8. The Contract Party shall comply with any other insurance requirements including, but not
limited to, additional coverages or limits contained in the procurement or solicitation.
9. Failure to comply with these Insurance Requirements is a material breach entitling the State
to terminate or suspend the Contract immediately.
10. These Insurance Requirements shall survive expiration or termination of the Contract.
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Schedule A3 – Information Technology and/or Cyber/Privacy
Definitions
“Information Technology” A type of insurance designed to cover providers of
technology services or products. For example, data storage companies and website designers
provide technology services, while computer software and computer manufacturers
offer technology products.
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Technology E&O (“Tech E & O”) policies cover both liability and property loss exposures. Major
liability insuring agreements include losses resulting from: (1) technology services, (2) technology
products, (3) media content, and (4) network security breaches. Key property insuring agreements
provide coverage for extortion threats, crisis management expense, and business interruption.
Tech E&O insurance is often confused with cyber and privacy insurance. In contrast to Tech E&O
coverage, cyber and privacy insurance is intended to protect consumers of technology products
and services. Nevertheless, cyber and privacy insurance policies do offer a number of the same
insuring agreements as Tech E&O policies.
Cyber/Privacy: A type of insurance designed to cover consumers of technology services or
products. More specifically, the policies are intended to cover a variety of both liability and property
losses that may result when a business engages in various electronic activities, such as selling
on the Internet or collecting data within its internal electronic network.
6
Note this coverage is not
only for an electronic breach, but also for paper data breaches.
Most notably, but not exclusively, cyber and privacy policies cover liability for a data breach in
third party personal information, such as Social Security numbers, credit card numbers,
Protected Health Information as defined in HIPAA and its implementing regulations, Personal
Information as defined in HIPAA and its implementing regulations and Personal Information as
defined in R.I. Gen. Laws § 11-49.3-1, et seq., as amended, or as otherwise defined in the
Contract (“Confidential Information”) is exposed or stolen by a hacker or other criminal who has
gained access to Contract Party’s electronic network. The policies cover a variety of expenses
associated with both electronic and paper data breaches including: notification costs, credit
monitoring, costs to defend claims by state regulators, fines and penalties, and loss resulting from
identity theft.
In addition, the policies cover liability arising from website media content, as well as property
exposures from: (a) business interruption, (b) data loss/destruction, (c) computer fraud, (d) funds
transfer loss, and (e) cyber extortion.
Cyber and privacy insurance is often confused with Tech E&O insurance. In contrast to cyber and
privacy insurance, Tech E&O coverage is intended to protect providers of technology products
and services, such as computer software and hardware manufacturers, website designers, and
firms that store data on an off-site basis. Nevertheless, Tech E&O insurance policies do contain
a number of the same insuring agreements as cyber and privacy policies.
“State:” The State of Rhode Island and its branches, departments, agencies, offices,
commissions, any using entity authorized by R.I. Gen. Laws § 37-2-1, et seq. to participate in a
procurement and any other party directed by the State and the officers, directors, officials, agents,
employees, independent contractors and volunteers of any of them.
5
https://www.irmi.com/term/insurance-definitions/technology-errors-and-omissions-insurance.
6
https://www.irmi.com/term/insurance-definitions/cyber-and-privacy-insurance.
14
“Contract Party:” Any person, organization or entity that is a Contract Party with State in which
the Contract Party (i.e., vendor) provides services or products to State. Contract Party shall also
include as insured persons Contract Party’s officers, directors, officials, agents, employees,
subcontractors, independent contractors, volunteers and any other entity or person for which the
Contract Party is legally responsible. For purposes of this document “Contract Party” does not
include any branches, departments, agencies, offices, or commissions of the State that may
contract with any other State branches, departments, agencies, offices, commissions.
Required Insurance
Contract Party shall procure Required Insurance as defined herein:
a. At the sole cost and expense of Contract Party.
b. Obtain and maintain such Required Insurance in full force and effect during the entire
term of the Contract until all obligations of Contract Party have been discharged, including
any warranty periods or extended reporting periods, against claims that may arise out of,
are alleged to arise out of, directly or indirectly, in whole or in part, from or in connection
with the Contract and/or result from the performance of the Contract.
c. Any deductible, self-insured retention, or form of self-insurance under the policies shall be
the sole responsibility of the Contract Party and shall be disclosed to and acceptable to
the State authorized personnel.
d. Any required liability insurance policy that is to insure any form of products liability and/or
completed operations exposure created by Contract Party must provide extended
coverage as follows:
1. When required liability insurance policy uses “Occurrence” coverage trigger (Including
that known as “Reported Occurrence”):
a. Policy issued by same insurer for Contract Party as of effective date of Contract
between State and Contract Party or by comparable insurer providing renewal
insurance policy of 1-same coverage terms and conditions of prior expired
policy or 2-coverage at least equal to that required by Contract.
b. Such coverage must be provided for a period of not less than five (5) years
after the later of:
i. when the Contract has ended; or
ii. when products or services have been put to intended use; or
iii. when hardware, software, buildings, other physical structures or repairs
have been put to intended use.
c. Such required insurance can be provided by annual insurance policies or by
single runoff policy commonly referred to as “discontinued products or
operations.”
2. When required liability insurance policy uses any form of “claims-first made trigger:”
a. Policy issued by same insurer for Contract Party as of effective date of
Contract between State and Contract Party or by comparable insurer
providing renewal insurance policy of 1-same coverage terms and conditions
of prior expired policy or 2-coverage at least equal to that required by
Contract.
b. Provide coverage with a retroactive date on or before the effective date of the
Contract or at the beginning of Contract work.
c. Such coverage must be provided for a period of not less than five (5) years
after the later of:
i. when the Contract has ended; or
ii. when products or services have been put to intended use; or
15
iii. when hardware, software, buildings, other physical structures or
repairs have been put to intended use.
d. Such required insurance can be provided by annual insurance policies or by
single runoff policy commonly referred to as “discontinued products or
operations.”
e. If “claims-first made” liability insurance policy is cancelled or not renewed, and not
replaced with another claims-made policy form with a retroactive date prior to the Contract
date, the Contract Party must purchase extended reporting coverage for a minimum of
five (5) years after completion of work.
f. Required Insurance limits to be provided by single insurance policy or through “follow
form primary” layered excess insurance policies to obtain overall required limit(s).
g. Contract Party’s subcontractors to maintain same insurance.
h. Any insurance obtained by Contract Party that includes an “insured vs. insured” exclusion
must be revised to exclude State as Additional Insured.
i. State Purchasing Agent reserves the right to consider and accept alternative forms and
plans of insurance or to require additional more extensive coverage for any individual
requirement and can modify types of insurance and revise limits required of Contract Party
at any time during the term of this Contract.
Required Insurance:
1. Commercial General Liability Insurance. Commercial General Liability Insurance (“CGL”)
based on Insurance Services Office (“ISO”) most recent version of Commercial General
Liability policy form CG00 01, or its equivalent:
a. Covering bodily injury (including death), broad form property damage, personal and
advertising injury, independent contractors, products and completed operations and
contractual liability.
b. Such insurance coverage is subject to a minimum combined single limit of $1,000,000
per occurrence, $1,000,000 general aggregate and $1,000,000 products/completed
operations aggregate.
d. The general aggregate must be on a “per project” or “per location” basis.
e. Shall include waiver of subrogation in favor of State.
f. Include State as additional insureds on a primary and non-contributory basis.
g. The Contract Party shall submit a copy of any policy endorsement, or blanket
endorsement, evidencing the State as additional insureds on a primary and non-
contributory basis and a waiver of subrogation in favor of the State7. All endorsements
shall be subject to review and approval by the authorized State personnel.
2. Automobile Liability Insurance. Automobile Liability Insurance based on ISO most recent
version of Business Automobile Policy (“BAP”) CA 00 01, or its equivalent:
a. Covering bodily injury and property damage for any vehicles used in conjunction with
the performance of this Contract including owned, non-owned, and hired vehicles.
b. If a Contract Party does not own any vehicle at any time during the duration of this
Contract then the Contract Party can seek hired and non-owned automobile coverage
as provided by BAP or by hired non-owned automobile coverage endorsement to CGL.
c. At a minimum Contract Party must maintain hired and non-owned automobile
coverage for the full duration of this Contract.
7
Any time Contract Party is responsible for construction of any kind the additional status for State shall include
additional Insured-products/completed operations in addition to additional insured-premises/operations.
16
d. Such insurance coverage is subject to a minimum combined single limit of $1,000,000
per occurrence.
e. Shall include waiver of subrogation in favor of State.
f. Include State as additional insureds on a primary and non-contributory basis.
g. The Contract Party shall submit a copy of any policy endorsement, or blanket
endorsement, evidencing the State as additional insureds on a primary and non-
contributory basis and a waiver of subrogation in favor of the State. All endorsements
shall be subject to review and approval by the authorized State personnel
3. Workers’ Compensation and Employers’ Liability.
a. Statutory coverage as required by the workers’ compensation laws of the State of
Rhode Island, plus any applicable state law other than State of Rhode Island if
employee(s) state of hire is other than State of Rhode Island or employee(s) work
related to the Contract is not in the State of Rhode Island.
b. Policy form based on NCCI or its equivalent.
c. Employers’ Liability with minimum limits of $100,000 each accident, $100,000 disease
or policy limit and $100,000 each employee or minimum amount necessary for
Contract Party.
d. A Contract Party neither eligible for, nor entitled to, Worker’s Compensation who is an
independent Contract Party under Rhode Island law must comply with the statutory
procedure precluding an independent Contract Party from bringing a workers’
compensation claim against the State.
e. Policy to include waiver of subrogation in favor of State.
f. The Contract Party shall submit a copy of any policy endorsement or blanket
endorsement evidencing the waiver of subrogation in favor of the State. All
endorsements shall be subject to review and approval by the State authorized
personnel.
If Contract Party’s technology, hardware, software or professional services to State does not
provide Contract Party access to Confidential Information as defined in Number 5(a) below:
4. Technology Errors and Omissions Coverage. Technology Errors and Omissions
Insurance covering any damages caused by any error, omission, wrongful act or breach
of Contract by Contract Party. Coverage to include, but not be limited to: product failure,
security failure, professional liability, intellectual property infringement and personal injury
if limited or uninsured under commercial general liability insurance. Combined single limit
per occurrence shall not be less than $5,000,000. Annual aggregate shall not be less than
$5,000,000.
If Contract Party’s technology, hardware, software, or professional services to State does
provide Contract Party with access to Confidential Information as defined in Number 5(a)
below:
5. Information Technology/Cyber Privacy. Errors and Omission Insurance covering damages
to Insured Parties caused by any error, omission, wrongful act or breach of Contract in
performance of contracted professional services by Contractor.
a. Such insurance to have minimum limits of $5,000,000 per occurrence and $5,000,000
annual aggregate. If Contract Party provides: a) key back office services Contract
Party shall have a minimum limit of $10,000,000 per occurrence and $10,000,000
annual aggregate; b) if Contract Party has access to Protected Health Information as
defined in HIPAA and its implementing regulations, Personal Information as defined in
in R.I. Gen. Laws § 11-49.3-1, et seq., or as otherwise defined in the Contract (together
Confidential Information”), Contract Party shall have as a minimum the per occurrence,
17
per annual aggregate, the total rounded product of projected number of persons data
multiplied by $25 per person breach response expense per occurrence; but no less
than $5,000,000 per occurrence, per annual aggregate; or, c) if the Contract Party
provides or has access to mission critical services, network architecture and/or the
totality of confidential data $20,000,000 per occurrence and in the annual aggregate.
b. Such insurance to include insuring agreements as identified below either as modules
in master policy or as separate insurance policies.
Information Technology
Minimum coverage for Contract Party is liability insuring agreements for loss resulting
from: (1) technology services, (2) technology products, (3) media content, (4) network
security breaches and breach expenses incurred by State.
Cyber/Privacy Insurance
Coverage for Contract Party to include:
i. Regulatory liability;
ii. Information security and privacy, regardless of the media involved;
iii. Network interruption and/or business interruption;
iv. Digital asset loss of State;
v. Event breach costs including but not limited to crisis management (such as
forensic investigation, legal fees), public relations, notification costs, call
center operation costs, credit file monitoring and identity theft insurance;
vi. Placing and lifting of security freezes;
vii. Cyber extortion;
viii. Online media liability (i.e. including but not limited to website content);
ix. Costs to defend, including but limited attorney fees and settle; and,
x. Fines and penalties when insurable under appropriate state or federal law.
c. Coverage to include but not be limited to damage by Contract Party to States’ records
(whether e-data or other) product failure, security failure, privacy failure of e-data
records, privacy failure of other than e-data records, intellectual property infringement,
and personal injury as customarily insured by this type of insurance policy.
Crime Insurance as applicable to the procurement or solicitation:
6. Crime Insurance. Crime Insurance to cover dishonest acts of Contract Party that result in
a loss of any State property, including funds or securities of any kind, plus any other entity
or person’s property, including funds or securities of any kind, entrusted to the State that
is in the custody or control of the Contract Party. The policy shall:
a. Include insuring agreements for employee dishonesty, forgery/alteration, theft of money
and securities, robbery and safe burglary, money order and counterfeit currency,
computer crime and funds transfer fraud.
b. Include an endorsement for “Client’s Property” using ISO form CR04010813 or the
equivalent.
c. Have minimum combined limits of not less than $500,000 per occurrence; however, in
no instance shall the combined limits be less than fifty per cent (50%) of the value of
the Contract or based on the amount of funds that may be diverted, whichever is
greater.
d. Name the State as loss payee based on ISO CR20141010 or the equivalent.
e. Not contain a condition requiring an arrest.
f. When Contract Party has custody of State funds in excess of $250,000 then Contract
Party must have crime coverage commonly referred to as Social Engineering Fraud
18
(“SEF”) in an amount equal to Computer Crime limit and/or Fraudulent Funds Transfer
limit.
All Required Insurance shall be:
1. Placed with insurers:
a. Authorized to do business in Rhode Island.
b. Rated “A-,” class X or better by A.M. Best Company, Inc.
c. Any insurer with a lesser financial rating must be approved by the authorized State
personnel.
2. The legal defense provided to the State under the policy and any endorsements must be free
of any conflicts of interest, even if retention of separate legal counsel for the State is necessary.
3. As evidence of the insurance required by this Contract, the Contract Party shall furnish to State
Certificates of Insurance, including confirmation of all required policy endorsements including,
but not limited to, additional insured endorsements:
a. In form acceptable to the State to the Department of Administration, Division of
Purchases prior to a Division of Purchases award. Failure to comply with this provision
may result in rejection of the bid offer.
b. All certificates of insurance, whenever issued, shall include the requirement of the
insurer for thirty (30) days advance written notice of cancellation or non-renewal of any
insurance policy to Department of Administration, Division of Purchases Attn:
Purchasing Agent, One Capitol Hill, Providence, RI 02908. Contract Party shall also
immediately notify the State if the Required Insurance is cancelled, non-renewed,
potential exhaustion of policy limits or otherwise changed.
c. Certificates of Insurance and required endorsements shall thereafter be submitted
annually or earlier upon expiration and renewal of any of the policies.
d. All Certificates of Insurance and to the extent possible endorsements shall reference
the State procurement number.
e. State retains the right to demand a certified copy of any Required Insurance policy,
Certificate of Insurance or endorsement.
4. The Contract Party shall be responsible to obtain and maintain insurance on any real or
personal property owned, leased or used by State that is in the care, custody or control of
Contract Party. All property insurance of Contract Party must include a waiver of subrogation
that shall apply in favor of the State.
5. No warranty is made that the coverages and limits listed herein are adequate to cover and
protect the interests of the Contract Party for the Contract Party’s operations. These are
solely minimums that have been established to protect the interest of the State.
3. State shall be indemnified and held harmless as required by the Contract and to the full extent
of any coverage actually secured by the Contract Party in excess of the minimum
requirements set forth above.
4. The Contract Party shall use at its own risk and insure at its own cost any of its owned, leased
or used real or personal property. All such insurance of Contract Party must include a waiver
of subrogation that shall apply in favor of the State.
8. The Contract Party shall comply with any other insurance requirements including, but not
limited to, additional coverages or limits contained in the procurement or solicitation.
9. Failure to comply with these Insurance Requirements is a material breach entitling the State
to terminate or suspend the Contract immediately.
19
10. These Insurance Requirements shall survive expiration or termination of the Contract.
20
Schedule A4 – Public Works
As contained in the AIA documents and as required below. If the AIA documents’ insurance
provisions and the following insurance requirements conflict, the AIA documents’ insurance
requirements control.
Contract Party shall procure Required Insurance as defined herein:
a. At the sole cost and expense of Contract Party.
b. Obtain and maintain such Required Insurance in full force and effect during the entire
term of the Contract until all obligations of Contract Party have been discharged, including
any warranty periods or extended reporting periods, against claims that may arise out of,
are alleged to arise out of, directly or indirectly, in whole or in part, from or in connection
with the Contract and/or result from the performance of the Contract.
c. Any deductible, self-insured retention, or form of self-insurance under the policies shall be
the sole responsibility of the Contract Party and shall be disclosed to and acceptable to
the State authorized personnel.
d. Any required liability insurance policy that is to insure any form of products liability and/or
completed operations exposure created by Contract Party must provide extended
coverage as follows:
1. When required liability insurance policy uses “Occurrence” coverage trigger (Including
that known as “Reported Occurrence”):
a. Policy issued by same insurer for Contract Party as of effective date of Contract
between State and Contract Party or by comparable insurer providing renewal
insurance policy of 1-same coverage terms and conditions of prior expired
policy or 2-coverage at least equal to that required by Contract.
b. Such coverage must be provided for a period of not less than five (5) years
after the later of:
i. when the Contract has ended; or
ii. when products or services have been put to intended use; or
iii. when hardware, software, buildings, other physical structures or repairs
have been put to intended use.
c. Such required insurance can be provided by annual insurance policies or by
single runoff policy commonly referred to as “discontinued products or
operations.”
2. When required liability insurance policy uses any form of “claims-first made trigger:”
a. Policy issued by same insurer for Contract Party as of effective date of
Contract between State and Contract Party or by comparable insurer
providing renewal insurance policy of 1-same coverage terms and conditions
of prior expired policy or 2-coverage at least equal to that required by
Contract.
b. Provide coverage with a retroactive date on or before the effective date of the
Contract or at the beginning of Contract work.
c. Such coverage must be provided for a period of not less than five (5) years
after the later of:
i. when the Contract has ended; or
ii. when products or services have been put to intended use; or
iii. when hardware, software, buildings, other physical structures or
repairs have been put to intended use.
21
d. Such required insurance can be provided by annual insurance policies or by
single runoff policy commonly referred to as “discontinued products or
operations”.
e. If “claims-first made” liability insurance policy is cancelled or not renewed, and not
replaced with another claims-made policy form with a retroactive date prior to the Contract
date, the Contract Party must purchase extended reporting coverage for a minimum of
five (5) years after completion of work.
f. Required Insurance limits to be provided by single insurance policy or through “follow
form primary” layered excess insurance policies to obtain overall required limit(s).
g. Contract Party’s subcontractors to maintain same insurance.
h. Any insurance obtained by Contract Party that includes an “insured vs. insured” exclusion
must be revised to exclude State as Additional Insured.
i. State Purchasing Agent reserves the right to consider and accept alternative forms and
plans of insurance or to require additional more extensive coverage for any individual
requirement and can modify types of insurance and revise limits required of Contract Party
at any time during the term of this Contract.
Required Insurance:
1. Commercial General Liability Insurance. Commercial General Liability Insurance (“CGL”)
based on Insurance Services Office (“ISO”) most recent version of Commercial General
Liability policy form CG00 01, or its equivalent:
a. Covering bodily injury (including death), broad form property damage, personal and
advertising injury, independent contractors, products and completed operations and
contractual liability.
b. Such insurance coverage is subject to a minimum combined single limit of $1,000,000
per occurrence, $1,000,000 general aggregate and $1,000,000 products/completed
operations aggregate.
c. The general aggregate must be on a “per project” or “per location” basis.
d. Shall include waiver of subrogation in favor of State.
e. Include State as additional insured on a primary and non-contributory basis.
f. The Contract Party shall submit a copy of any policy endorsement, or blanket
endorsement, evidencing the State as additional insured8 on a primary and non-
contributory basis and a waiver of subrogation in favor of State. All endorsements shall
be subject to review and approval by the authorized State personnel.
2. Automobile Liability Insurance. Automobile Liability Insurance based on ISO most recent
version of Business Automobile Policy (“BAP”) CA 00 01, or its equivalent:
a. Covering bodily injury and property damage for any vehicles used in conjunction with
the performance of this Contract including owned, non-owned, and hired vehicles.
b. If a Contract Party does not own any vehicle at any time during the duration of this
Contract then the Contract Party can seek hired and non-owned automobile coverage
as provided by BAP or by hired non-owned automobile coverage endorsement to CGL.
c. At a minimum Contract Party must maintain hired and non-owned automobile
coverage for the full duration of this Contract.
d. Such insurance coverage is subject to a minimum combined single limit of $1,000,000
per occurrence.
e. Shall include waiver of subrogation in favor of State.
f. Include State as additional insured on a primary and non-contributory basis.
8
Any time Contract Party is responsible for construction of any kind the additional status for State shall include
additional Insured-products/completed operations in addition to additional insured-premises/operations.
22
g. The Contract Party shall submit a copy of any policy endorsement, or blanket
endorsement, evidencing the State as additional insureds on a primary and non-
contributory basis and a waiver of subrogation in favor of State. All endorsements shall
be subject to review and approval by the authorized State personnel.
3. Workers’ Compensation and Employers’ Liability.
a. Statutory coverage as required by the workers’ compensation laws of the State of
Rhode Island, plus any applicable state law other than State of Rhode Island if
employee(s) state of hire is other than State of Rhode Island or employee(s) work
related to the Contract is not in the State of Rhode Island.
b. Policy form based on NCCI or its equivalent.
c. Employers’ Liability with minimum limits of $100,000 each accident, $100,000 disease
or policy limit and $100,000 each employee or minimum amount necessary for
umbrella/excess liability policy of Contract Party.
d. A Contract Party neither eligible for, nor entitled to, Worker’s Compensation who is an
independent Contract Party under Rhode Island law must comply with the statutory
procedure precluding an independent Contract Party from bringing a workers’
compensation claim against the State.
e. Policy to include waiver of subrogation in favor of State.
f. The Contract Party shall submit a copy of any policy endorsement or blanket
endorsement evidencing the waiver of subrogation in favor of the State. All
endorsements shall be subject to review and approval by the State authorized
personnel.
All Required Insurance shall be:
1. Placed with insurers:
a. Authorized to do business in Rhode Island.
b. Rated “A-,” class X or better by A.M. Best Company, Inc.
c. Any insurer with a lesser financial rating must be approved by the authorized State
personnel.
2. The legal defense provided to the State under the policy and any endorsements must be free
of any conflicts of interest, even if retention of separate legal counsel for the State is necessary.
3. As evidence of the insurance required by this Contract, the Contract Party shall furnish to State
Certificates of Insurance, including confirmation of all required policy endorsements including,
but not limited to, additional insured endorsements:
a. In form acceptable to the State to the Department of Administration, Division of
Purchases prior to a Division of Purchases award. Failure to comply with this provision
may result in rejection of the bid offer.
b. All certificates of insurance, whenever issued, shall include the requirement of the
insurer for thirty (30) days advance written notice of cancellation or non-renewal of any
insurance policy to Department of Administration, Division of Purchases Attn:
Purchasing Agent, One Capitol Hill, Providence, RI 02908. Contract Party shall also
immediately notify the State if the Required Insurance is cancelled, non-renewed,
potential exhaustion of policy limits or otherwise changed.
c. Certificates of Insurance and required endorsements shall thereafter be submitted
annually or earlier upon expiration and renewal of any of the policies.
d. All Certificates of Insurance and to the extent possible endorsements shall reference
the State procurement number.
e. State retains the right to demand a certified copy of any Required Insurance policy,
Certificate of Insurance or endorsement.
23
4. The Contract Party shall be responsible to obtain and maintain insurance on any real or
personal property owned, leased or used by State that is in the care, custody or control of
Contract Party. All property insurance of Contract Party must include a waiver of subrogation
that shall apply in favor of the Insured Parties.
5. No warranty is made that the coverages and limits listed herein are adequate to cover and
protect the interests of the Contract Party for the Contract Party’s operations. These are solely
minimums that have been established to protect the interest of the State.
6. State shall be indemnified and held harmless as required by the Contract and to the full extent
of any coverage actually secured by the Contract Party in excess of the minimum
requirements set forth above.
7. The Contract Party shall use at its own risk and insure at its own cost any of its owned, leased
or used real or personal property. All such insurance of Contract Party must include a waiver
of subrogation that shall apply in favor of the State.
8. The Contract Party shall comply with any other insurance requirements including, but not
limited to, additional coverages or limits contained in the procurement or solicitation.
9. Failure to comply with these Insurance Requirements is a material breach entitling the State
to terminate or suspend the Contract immediately.
10. These Insurance Requirements shall survive expiration or termination of the Contract.
24
Schedule A5 – Department of Transportation Projects
As contained in the State of Rhode Island Department of Transportation’s Standard Specifications
for Road and Bridge Design document commonly referenced as the Rhode Island Department of
Transportation’s “Blue Book” located at www.dot.ri.gov/business/bluebook.php
and as required
below. If the Blue Book’s insurance requirements and the following insurance requirements
conflict, the Blue Books’ insurance requirements control.
Required Insurance
Contract Party shall procure Required Insurance as defined herein:
a. At the sole cost and expense of Contract Party.
b. Obtain and maintain such Required Insurance in full force and effect during the entire
term of the Contract until all obligations of Contract Party have been discharged, including
any warranty periods or extended reporting periods, against claims that may arise out of,
are alleged to arise out of, directly or indirectly, in whole or in part, from or in connection
with the Contract and/or result from the performance of the Contract.
c. Any deductible, self-insured retention, or form of self-insurance under the policies shall be
the sole responsibility of the Contract Party and shall be disclosed to and acceptable to
the State authorized personnel.
d. Any required liability insurance policy that is to insure any form of products liability and/or
completed operations exposure created by Contract Party must provide extended
coverage as follows:
1. When required liability insurance policy uses “Occurrence” coverage trigger (Including
that known as “Reported Occurrence”):
a. Policy issued by same insurer for Contract Party as of effective date of Contract
between State and Contract Party or by comparable insurer providing renewal
insurance policy of 1-same coverage terms and conditions of prior expired
policy or 2-coverage at least equal to that required by Contract.
b. Such coverage must be provided for a period of not less than five (5) years
after the later of:
i. when the Contract has ended; or
ii. when products or services have been put to intended use; or
iii. when hardware, software, buildings, other physical structures or repairs
have been put to intended use.
c. Such required insurance can be provided by annual insurance policies or by
single runoff policy commonly referred to as “discontinued products or
operations.”
2. When required liability insurance policy uses any form of “claims-first made trigger:”
a. Policy issued by same insurer for Contract Party as of effective date of
Contract between State and Contract Party or by comparable insurer
providing renewal insurance policy of 1-same coverage terms and conditions
of prior expired policy or 2-coverage at least equal to that required by
Contract.
b. Provide coverage with a retroactive date on or before the effective date of the
Contract or at the beginning of Contract work.
c. Such coverage must be provided for a period of not less than five (5) years
after the later of:
i. when the Contract has ended; or
ii. when products or services have been put to intended use; or
25
iii. when hardware, software, buildings, other physical structures or
repairs have been put to intended use.
d. Such required insurance can be provided by annual insurance policies or by single runoff
policy commonly referred to as “discontinued products or operations”.
e. If “claims-first made” liability insurance policy is cancelled or not renewed, and not replaced
with another claims-made policy form with a retroactive date prior to the Contract date, the
Contract Party must purchase extended reporting coverage for a minimum of five (5) years
after completion of work.
f. Required Insurance limits to be provided by single insurance policy or through “follow
form primary” layered excess insurance policies to obtain overall required limit(s).
g. Contract Party’s subcontractors to maintain same insurance.
h. Any insurance obtained by Contract Party that includes an “insured vs. insured” exclusion
must be revised to exclude State as Additional Insured.
i. State Purchasing Agent reserves the right to consider and accept alternative forms and
plans of insurance or to require additional more extensive coverage for any individual
requirement and can modify types of insurance and revise limits required of Contract Party
at any time during the term of this Contract.
Required Insurance:
1. Commercial General Liability Insurance. Commercial General Liability Insurance (“CGL”)
based on Insurance Services Office (“ISO”) most recent version of Commercial General
Liability policy form CG00 01, or its equivalent:
a. Covering bodily injury (including death), broad form property damage, personal and
advertising injury, independent contractors, products and completed operations and
contractual liability.
b. Such insurance coverage is subject to a minimum combined single limit of $1,000,000 per
occurrence, $1,000,000 general aggregate and $1,000,000 products/completed
operations aggregate.
c. The general aggregate must be on a “per project” or “per location” basis.
d. Shall include waiver of subrogation in favor of State.
e. Include State as additional insured on a primary and non-contributory basis.
f. The Contract Party shall submit a copy of any policy endorsement, or blanket
endorsement, evidencing the State as additional insured
9
on a primary and non-
contributory basis and a waiver of subrogation in favor of State. All endorsements shall
be subject to review and approval by the authorized State personnel.
2. Automobile Liability Insurance. Automobile Liability Insurance based on ISO most recent
version of Business Automobile Policy (“BAP”) CA 00 01, or its equivalent:
a. Covering bodily injury and property damage for any vehicles used in conjunction with
the performance of this Contract including owned, non-owned, and hired vehicles.
b. If a Contract Party does not own any vehicle at any time during the duration of this
Contract then the Contract Party can seek hired and non-owned automobile coverage
as provided by BAP or by hired non-owned automobile coverage endorsement to CGL.
c. At a minimum Contract Party must maintain hired and non-owned automobile coverage
for the full duration of this Contract.
d. Such insurance coverage is subject to a minimum combined single limit of $1,000,000
per occurrence.
e. Shall include waiver of subrogation in favor of State.
f. Include State as additional insured on a primary and non-contributory basis.
9
Any time Contract Party is responsible for construction of any kind the additional status for State shall include
additional Insured-products/completed operations in addition to additional insured-premises/operations.
26
g. The Contract Party shall submit a copy of any policy endorsement, or blanket
endorsement, evidencing the State as additional insureds on a primary and non-
contributory basis and a waiver of subrogation in favor of State. All endorsements
shall be subject to review and approval by the authorized State personnel.
3. Workers’ Compensation and Employers’ Liability.
a. Statutory coverage as required by the workers’ compensation laws of the State of
Rhode Island, plus any applicable state law other than State of Rhode Island if
employee(s) state of hire is other than State of Rhode Island or employee(s) work
related to the Contract is not in the State of Rhode Island.
b. Policy form based on NCCI or its equivalent.
c. Employers’ Liability with minimum limits of $100,000 each accident, $100,000 disease
or policy limit and $100,000 each employee or minimum amount necessary for
umbrella/excess liability policy of Contract Party.
d. A Contract Party neither eligible for, nor entitled to, Worker’s Compensation who is an
independent Contract Party under Rhode Island law must comply with the statutory
procedure precluding an independent Contract Party from bringing a workers’
compensation claim against the State.
e. Policy to include waiver of subrogation in favor of State.
f. The Contract Party shall submit a copy of any policy endorsement or blanket
endorsement evidencing the waiver of subrogation in favor of the State. All
endorsements shall be subject to review and approval by the State authorized
personnel.
All Required Insurance shall be:
1. Placed with insurers:
a. Authorized to do business in Rhode Island.
b. Rated “A-,” class X or better by A.M. Best Company, Inc.
c. Any insurer with a lesser financial rating must be approved by the authorized State
personnel.
2. The legal defense provided to the State under the policy and any endorsements must be free
of any conflicts of interest, even if retention of separate legal counsel for the State is necessary.
3. As evidence of the insurance required by this Contract, the Contract Party shall furnish to State
Certificates of Insurance, including confirmation of all required policy endorsements including,
but not limited to, additional insured endorsements:
a. In form acceptable to the State to the Department of Administration, Division of
Purchases prior to a Division of Purchases award. Failure to comply with this provision
may result in rejection of the bid offer.
b. All certificates of insurance, whenever issued, shall include the requirement of the
insurer for thirty (30) days advance written notice of cancellation or non-renewal of any
insurance policy to Department of Administration, Division of Purchases Attn:
Purchasing Agent, One Capitol Hill, Providence, RI 02908. Contract Party shall also
immediately notify the State if the Required Insurance is cancelled, non-renewed,
potential exhaustion of policy limits or otherwise changed.
c. Certificates of Insurance and required endorsements shall thereafter be submitted
annually or earlier upon expiration and renewal of any of the policies.
d. All Certificates of Insurance and to the extent possible endorsements shall reference
the State procurement number.
e. State retains the right to demand a certified copy of any Required Insurance policy,
Certificate of Insurance or endorsement.
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4. The Contract Party shall be responsible to obtain and maintain insurance on any real or
personal property owned, leased or used by State that is in the care, custody or control of
Contract Party. All property insurance of Contract Party must include a waiver of subrogation
that shall apply in favor of the State.
5. No warranty is made that the coverages and limits listed herein are adequate to cover and
protect the interests of the Contract Party for the Contract Party’s operations. These are
solely minimums that have been established to protect the interest of the State.
6. State shall be indemnified and held harmless as required by the Contract and to the full extent
of any coverage actually secured by the Contract Party in excess of the minimum
requirements set forth above.
7. The Contract Party shall use at its own risk and insure at its own cost any of its owned, leased
or used real or personal property. All such insurance of Contract Party must include a waiver
of subrogation that shall apply in favor of the State.
8.The Contract Party shall comply with any other insurance requirements including, but not
limited to, additional coverages or limits contained in the procurement or solicitation.
9. Failure to comply with these Insurance Requirements is a material breach entitling the State
to terminate or suspend the Contract immediately.
10. These Insurance Requirements shall survive expiration or termination of the Contract.