The teaching of hands-on boating safety is determined by the State of California to be a hazardous activity. Therefore, the following types of insurance coverage are needed. Certificates of insurance must accompany all contracts. If the Contractor is self insured, a letter stating and explaining self insurance status must accompany the contract instead of providing a certificate of insurance.
Commercial General Liability
The Contractor shall maintain general liability with limits of not less than $1,000,000 per occurrence for bodily injury and property damage liability combined with a $2,000,000 annual policy aggregate. The policy shall include coverage for liabilities arising out of premises, operations, independent contractors, products, completed operations, personal and advertising injury, and liability assumed under an insured contract. This insurance shall apply separately to each insured against whom claim is made or suit is brought subject to the Contractors limit of liability.
The policy must include the Division of Boating and Waterways and the State of California, its officers agents employees, and servants as additional insured, but only insofar as the operations under the contract are concerned.
All policies or letters of self insurance must include the following clause:
The California Division of Boating and Waterways and the State of California, its officers, agents, employees, and servants are named as additional insured.
This endorsement must be supplied under form acceptable to the Office of Risk and Insurance Management. In the case of Contractor's utilization of subcontractors to complete the contracted scope of work, Contractor shall include all subcontractors as insured's under Contractor's insurance or supply evidence of insurance to The State equal to policies, coverages and limits required of Contractor.
Any proposed change in this status shall be reported to the Division prior to the change and may result in restrictions being imposed on the usage of the monies or equipment.
Contractor shall maintain watercraft liability with limits not less than $1,000,000 combined single limit per accident. Such insurance shall cover liability arising out of the maintenance and use of any watercraft.
The Contractor shall maintain general liability with limits of not less than $1,000,000 per occurrence for bodily injury and property damage liability combined. The policy shall include coverage for liabilities arising out of premises, operations, independent contractors, products, completed operations, personal and advertising injury, and liability assumed under an insured contract. This insurance shall apply separately to each insured against whom claim is made or suit is brought subject to the contractor's limit of liability.
The Contractor shall produce evidence of necessary insurance for all vessels bought with the grant money and all vessels used in boating programs funded by grant money.
If automobiles are used in the transportation of vessels or people involved in aquatic programs then the following coverage is needed:
Contractor shall maintain motor vehicle liability with limits required by State and Federal statute but shall not be less than $1,000,000 combined single limit per accident. Such insurance shall cover liability arising out of a motor vehicle including owned, hired and non-owned motor vehicles.
Workers Compensation and Employers Liability
Contractor shall maintain statutory worker's compensation and employer's liability coverage for all its employees who will be engaged in the performance of the Contract. Employer's liability limits of $1,000,000 are required.
Contractor shall provide evidence of self insurance. The State reserves the right to request financial information.
GENERAL REQUIREMENTS APPLYING TO ALL POLICIES
(Insurance Companies must be acceptable to the Department of General Services, Office of Risk and Insurance Management.)
Coverage needs to be in force for the complete term of the contract. If insurance expires during the term of the contract, a new certificate must be received by the State at least ten (10) days prior to the expiration of this insurance. Any new insurance must still comply with the original terms of the contract.
Policy Cancellation or Termination & Notice of Non-Renewal
Insurance policies shall contain a provision stating coverage will not be cancelled without 30 days prior written notice to the State. In the event Contractor fails to keep in effect at all times the specified insurance coverage, the State may, in addition to any other remedies it may have, terminate this Contract upon the occurrence of such event, subject to the provisions of this Contract.
Contractor is responsible for any deductible or self-insured retention contained within their insurance program.
Any required insurance contained in this contract shall be primary, and not excess or contributory, to any other insurance carried by the State.
Insurance Carrier Required Rating
All insurance companies must carry a rating acceptable to the Office of Risk and Insurance Management. If the Contractor is self insured for a portion or all of its insurance, review of financial information including a letter of credit may be required.
Any required endorsements requested by the State must be physically attached to all requested certificates of insurance and not substituted by referring to such coverage on the certificate of insurance.
Inadequate or lack of insurance does not negate the contractor's obligations under the contract.