Agmt16 Bay Area Paving Co., Inc.

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7. 1 Coverages and Limits. Contractor, at its sole expense, shall maintain the types of coverages and minimum limits indicated below, unless otherwise approved by City in writing. These minimum amounts of coverage will not constitute any limitations or cap on Contractor's indemnification obligations under this Agreement. 7. 1 . 1 Commercial General Liability Insurance. Contractor shall maintain occurrence based coverage with limits not less than $ 1 ,000,000 per occurrence. If the submitted policies contain aggregate limits, such limits will apply separately to the Services, project, or location that is the subject of this Agreement or the aggregate will be twice the required per occurrence limit. The Commercial General Liability insurance policy shall be endorsed to name the City, its officers, agents, employees and volunteers as additional insureds, and to state that the insurance will be primary and not contribute with any insurance or self-insurance maintained by the City. 7. 1 .2 Business Automobile Liability Insurance. Contractor shall maintain coverage with limits not less than $ 1,000,000 per each accident for owned, hired and non-owned automobiles. 7. 1 .3 Workers' Compensation Insurance. Contractor shall maintain coverage as required by the California Labor Code. The Workers' Compensation policy shall contain an endorsement stating that the insurer waives any right to subrogation against the City, its officers, agents, employees and volunteers. 7. 1 .4 Employer's Liability Insurance. Contractor shall maintain coverage with limits not less than $ 1 ,000,000 per each accident for bodily injury or disease. 7.2. Notice of Cancellation. This insurance will be in force during the life of the Agreement and any extensions of it and will not be canceled without Contractor providing thirty (30) days prior written notice to City sent pursuant to the Notice provisions of this Agreement. 7.3 Providing Certificates of Insurance and Endorsements. Prior to City's execution of this Agreement, Contractor shall provide to City certificates of insurance and above-referenced endorsements sufficient to satisfaction of City's Risk Manager. In no event shall Contractor commence any work or provide any Services under this Agreement until certificates of insurance and endorsements have been accepted by City's Risk Manager. 7.4 Failure to Maintain Coverage. If Contractor fails to comply with these insurance requirements, then City will have the option to declare Contractor in breach, or may purchase replacement insurance or pay the premiums that are due on existing policies in order to maintain the required coverages. Contractor is responsible for any payments made by City to obtain or maintain insurance and City may collect these payments from Contractor or deduct the amount paid from any sums due Contractor Page 3 of 13 REV: 10-19-16 RL ATTY/AGR.2016.300/Bay Area Paving Co., Inc.