It’s essential to clearly outline the types and levels of insurance coverage that the contractor will maintain throughout the construction project. This can include general liability, workers’ compensation, and any specific coverage required by the client or applicable laws. You should also verify what the contractor will indemnify and hold harmless the client from any liabilities, claims, or damages arising from the construction work, providing a strong layer of protection for the client.
The insurance and indemnification clause sets the bedrock for conflict resolution. As such, it should be detailed and unambiguous.
Insurance Requirements
(a) The contractor shall maintain, at its own expense, comprehensive insurance coverage during the entire duration of the construction project. Such insurance coverage shall include, but not be limited to:
(i) Commercial general liability insurance with a minimum limit of (Enter Amount) per occurrence and (Enter Amount) in the aggregate, covering bodily injury, property damage, products-completed operations liability, and personal and advertising injury.
(ii) Workers' compensation insurance, as required by applicable laws, including employer's liability insurance with a minimum limit of (Enter Amount).
(iii) Automobile liability insurance covering all owned, non-owned, and hired vehicles with a minimum limit of (Enter Amount) per accident.
(iv) Contractor's pollution liability Insurance with a minimum limit of (Enter Amount), specifically covering pollution or environmental liabilities arising from the construction project.
(b) The client shall be named as an additional insured on all of the contractor's insurance policies referenced above. Certificates of insurance evidencing such coverage shall be furnished to the Client prior to the commencement of any work.
Indemnification
(a) The contractor shall indemnify, defend, and hold harmless the client, its officers, agents, and employees from and against any and all claims, demands, actions, liabilities, losses, damages, costs, and expenses (including reasonable attorney's fees) arising out of or in connection with the construction project, to the fullest extent permitted by law.
(b) The contractor's obligation to indemnify shall include, but not be limited to, claims or liabilities arising from bodily injury, death, property damage, or environmental contamination, regardless of whether such claims are caused in whole or in part by the negligence or fault of the client, its agents, or employees.
