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6. Insurance and Indemnity

To the furthest extent permitted by law, the Contractor shall indemnify, defend, and hold harmless the District and its governing board, officers, employees, agents, and volunteers (“Indemnified Parties”) from and against any and all liabilities, demands, claims, actions, causes of action (including cost of defense, settlement, and reasonable attorneys’ fees) (collectively “Claims”) which arise out of the negligent, grossly negligent or willful conduct of the Contractor, Subcontractors or the employees, agents or representatives of the Contractor or Subcontractors, including without limitation, Claims for bodily injuries (including death) to any person, damage (including theft or loss of use) to any property, Stop Payment Notice claims and other economic losses, damages or injuries. The Contractor’s obligations hereunder shall survive completion of the Work or termination of the Contract until barred by the applicable statute of limitations. The obligations of the Performance Bond Surety include assumption of the Contractor’s obligations hereunder if the Contractor fails or refuses to do so.

The Contractor and Subcontractors shall maintain in force during performance of the Work the following policies of insurance:

6.2.1. Workers Compensation

The Workers Compensation insurance shall cover claims under workers’ or workmen’s compensation, disability benefit and other similar employee benefit acts which are applicable to the Work.

6.2.2. Employers' Liability

The Employer’s Liability Insurance shall cover bodily injury (including death) by accident or disease to any employee which arises out of the employee’s employment by Contractor. The Employer’s Liability Insurance may be obtained as a separate policy of insurance or as an additional coverage under the Workers’ Compensation Insurance policy.

6.2.3. Commercial General Liability Insurance

The General Liability insurance policies shall cover personal injury, bodily injury, death, other injury and property damage losses.

6.2.4. Contractor's Pollution Liability

The Contractor Pollution Liability policy shall cover losses for bodily injury, property damage, defense, and cleanup as a result of pollution conditions (sudden/accidental and gradual) arising from contracting operations performed by or on behalf of the Contractor, except for fungus/spore coverage.

6.2.5. Automobile Liability

The Automobile Liability insurance shall cover losses for bodily injury, death or property damage arising out of use or operation of owned, non-owned and hired vehicles.

6.2.6. Builders Risk

If required by the Contract Documents, the Builders´ Risk insurance shall cover all risks of direct physical loss basis, or an amount equal to the full completed value the Project Work. The Builders Risk policy deductible shall not exceed $250,000 for each loss.

6.2.7. Minimum Coverage Limits

Each required policy of insurance shall be in at least the minimum coverage limit set forth in the Contract or as follows:

  1. Workers’ Compensation Insurance: In accordance with Laws; Employer’s Liability Insurance. One Million Dollars ($1,000,000);
  2. Commercial General Liability and Property Insurance: Per Occurrence: One Million Dollars ($1,000,000) and Aggregate: Two Million Dollars ($2,000,000); and
  3. Automobile Liability Insurance: One Million Dollars ($1,000,000).
  4. Additional Insured: Insurance shall name the District and its Board of Trustees, officers, employees, agents, and volunteers as Additional Insured under its Commercial General Liability and Automobile Liability policies as follows:
    West Valley Mission Community College District, its Board of Trustees as individuals and as an entity, officers, officials, agents, employees, and volunteers as additional insureds.
  5. Certificate of Insurance: Insurance is to be placed with insurers with a current A.M. Best’s rating of no less than A:VII unless otherwise acceptable to the District. VENDOR shall furnish the District with original certificates of insurance and amendatory endorsements effecting coverage required by this Agreement and indicating a thirty (30) day cancellation notice or notice of reduction in coverage before performing any Services under this Purchase Order. VENDOR will be in material default of the Purchase Order if it fails to timely email or mail these documents to the District with the above limits, endorsements if required, and listing the District as Certificate Holder with the name and address below:

    West Valley-Mission Community College District
    Attn: General Services
    14000 Fruitvale Ave.
    Saratoga, CA 95070

6.2.8. Certificates of Insurance

Before commencing the Work, the Contractor and its Subcontractors shall provide to the District Representative certificate(s) of insurance and endorsements establishing conformity to insurance coverage requirements. No Work is permitted at the Site until the Contractor delivers Certificates of Insurance to the District Representative evidencing insurance policies/coverages required by the Contract or Purchase Order. The Contract Time is not subject to extension for the Contractor’s delayed delivery of Certificates of Insurance to the District Representative.

The policies of insurance obtained by the Contractor and Subcontractors shall not be amended or modified and the coverage amounts shall not be reduced without at least thirty (30) days advance written notice to the District. Except for workers compensation insurance, the District must be named as an additional insured on all policies. The Contractor’s policies are primary; any insurance carried by the District are only secondary and supplemental. All endorsements must waive any right to subrogation against any of the named additional insureds. All policies must be written on an occurrence form.

The Contractor shall not commence the Work until it has provided to the District, a Payment (Labor and Material) Bond and a Performance Bond issued by a California Admitted Surety Insurer, each in a penal sum equal to the Contract Price when required by the contract documents for Purchase Orders over $25,000 in value. The form and content of Bonds are incorporated into the Contract Documents. The Contract Time is not subject to adjustment for Contractor delay in submitting the Bonds to the District Representative.