Vendor Forms Guide: Construction Insurance Requirements 

Vendor and its subcontractors shall obtain and maintain, for the duration of this Agreement or longer, the minimum insurance coverage set forth below. General Liability, Auto Liability and Excess/Umbrella Liability insurance shall be written on an occurrence basis. All coverage shall be underwritten by companies authorized to do business in the State of Texas or eligible surplus lines insurers operating in accordance with the Texas Insurance Code and have a current financial strength rating of A- or better and a financial strength rating of VII or better as measured by A.M. Best Company or otherwise acceptable to ETAMU. By requiring such minimum insurance, the ETAMU shall not be deemed or construed to have assessed the risk that may be applicable to Vendor and its subcontractors under this Agreement. Vendor shall assess its own risks and if it deems appropriate and/or prudent, maintain higher limits and/or broader coverage. Vendor and its subcontractors is not relieved of any liability or other obligations assumed pursuant to this Agreement by reason of its failure to obtain or maintain insurance in sufficient amounts, duration, or types. No policy will be canceled without unconditional written notice to ETAMU at least ten days before the effective date of the cancellation.

A. Worker's Compensation

Worker's compensation insurance with the following minimum limits of coverage:

Workers' compensation policy must include under Item 3.A., on the information page of the workers' compensation policy, the state in which work is to be performed for ETAMU. Workers' compensation insurance is required, and no “alternative” forms of insurance will be permitted.

If this coverage is waived by System Risk Management, Vendor, his/her employees and subcontractors must sign a hold harmless and indemnification agreement.

B. Automobile Liability Insurance

Business auto liability insurance covering all owned, non-owned or hired automobiles, with limits of not less than $1,000,000 combined single limit of liability per accident for bodily injury and property damage;

C. Commercial General Liability Insurance

Commercial general liability insurance with the following minimum limits of coverage:

The required commercial general liability policy must be issued on a form that insures Vendor's or its subcontractors' liability for bodily injury (including death), property damage, personal and advertising injury assumed under the terms of this Agreement.

D. Excess/Umbrella Liability Insurance

Vendor and/or its subcontractors shall maintain umbrella/excess liability insurance with minimum required limits as determined by the below Guidelines in excess of all insurance required under this Agreement. Such coverage shall apply on a follow-form basis, or at a minimum, provide coverage no less broad than the underlying primary policies, including coverage for additional insureds where required. Drop-down coverage will be provided for reduction and/or exhaustion of underlying aggregate limits and will provide a duty to defend for any insured.

Guidelines:

1. This includes, but is not limited to, concrete, masonry, steel, carpentry, HVAC, plumbing, electrical, excavation, demolition, foundation, scaffolding, elevators, roofing, exterior waterproofing, EIFS, water and sewer mains, fire sprinkler/suppression, or exterior work at a height that exceeds 20 feet from the ground.

E. Vendor shall deliver to ETAMU the evidence of insurance on a Texas Department of Insurance approved certificate form, Acord form, letter of self-insurance or its equivalent verifying the existence and actual limits of all insurance prior to the execution and delivery of this Agreement and prior to the performance of any services and/or Services by Vendor and its subcontractors under this Agreement. Vendor shall provide additional evidence of insurance on an approved certificate form verifying the continued existence of all required insurance no later than thirty (30) days after each annual insurance policy renewal.

F. Commercial General Liability and Auto Liability policies must be endorsed to name the Board of Regents for and on behalf of The Texas A&M University System, The Texas A&M University System and its member institutions, universities, and agencies as additional insureds up to the actual liability limits of the policies maintained by Vendor and its subcontractors. The commercial general liability additional insured endorsements must include on-going and completed operations. Commercial general liability and business auto liability policies must be written on a primary and non-contributory basis. Copies of each endorsement must be submitted with the certificate of insurance upon request.

G. Vendor and its subcontractors hereby waives any and all rights of subrogation against the Board of Regents, The Texas A&M University System and its member institutions, universities, and agencies. All insurance policies must be endorsed to provide a waiver of subrogation in favor of the Board of Regents for and on behalf of The Texas A&M University System, The Texas A&M University System and its member institutions, universities, and agencies. Vendor's waiver under this Section shall apply regardless of whether Vendor has obtained the required waiver of subrogation endorsement from its insurer.

H. Vendor shall pay any deductible or self-insured retention for any loss.

I. Certificates of insurance and additional insured endorsements as required by this Agreement must be submitted/emailed to the following Certificate Holder and/or ETAMU contact:

• Certificate Holder
• East Texas A&M University
• Procurement Services
• PO Box 3011
• Commerce, TX 75429

Email Address: [email protected] 

J. The insurance coverage required by this Agreement must be kept in force until all services and/or Services have been fully performed and accepted by ETAMU in writing.

K. ETAMU reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances.