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A GUIDE TO INSURANCE COVERAGE IN CITY CONTRACTING <br />Brief Description of City Contract Insurance Requirements <br />Workers Compensation <br />This insurance coverage applies to contractor employees who have work-related accidents while on the job working on a <br />ContrdCt. It is very important that a contractor with employees have Workers Compensation coverage because the <br />contractor employees who have an accident will not be insured otherwise. The definition of an employee as per the State <br />of Minnesota Laws can be found at CityServe_I\Common�PRC�tiow-to\WC-Def. There is a separate coverage per injury <br />and as a total. The coverage levels that are required by the City standard contracts are minimal standards. <br />Commercial General Liability <br />This insurance coverage applies to various liability issues associated with the contract. It is composed of various pieces. <br />General Aggregate applies to the total insured General Liability of the contractor. Each Occurrence SpeClflB& the capped <br />amount for any'given incident. Products-completed operations applies to problems that occur as a result of the products <br />or operations created or modified by the contractor. Personal and advertising injury refers to defamation of character, <br />libelous writings or slanderous statements of the contractor while doing work on the contract. Fire damage refers to fire <br />damage to somebody else's property by a contractor when doing work on the contract. Medical expense refers to injuries <br />that resuft from actions of the contractor while working on the contract. The coverage levels that are required by the City <br />standard contracts are minimal standards. <br />Commercial Auto Liability <br />This insurance coverage applies to vehicle accidents that occur while the contractor is conducting work on the contract. <br />Even if the contractor has personal automobile insurance, this insurance may not cover accidents that occur while the <br />contractor is working. The coverage may be given for cars owned by the contractor, cars leased by the contractor, <br />employee-owned cars being used for work, or may Coye� all Cars used by the contractor. The coverage levels that are <br />required by the City standard contracts are minimal standards. <br />Professional Liability <br />This insurance coverage applies to problems that occur due to a professional making errors or omissions which are <br />inappropriate given the profession. For example, doctors have malpractice insurance that is a form of professional liabiliiy <br />insurance. The professionals that should typically require Professional Liability insurance are: architects, engineers, <br />medical professionals, computer professionals, as well as other professionals who have a high risk of causing serious <br />problems if their work is not done as per the standards of their profession. The coverage levels that are required by the <br />City standard contracts are minimal standards. The decision as to use Professional Liability insurance is up to the <br />department contract manager. <br />Builders Risk <br />This insurance coverage applies to problems during building construction. There is special language for this that must be <br />usea in the contract. The language is available on the CitySenre_I network under Common�PRCWow-to�speclang. The <br />decision as to use Builders Risk insurance is up to the department contract manager. <br />� <br />wStlRE ppC <br />Prepared by Lee Lit30fl in conjctnction w'rcn Risic Managementd�Ybed 8�198 <br />