Current through Register Vol. 50, No. 9, September 20, 2024
A. The
lessee shall purchase and maintain, for the duration of the AESL, insurance
against claims for injuries to persons or damages to property which may arise
from or in connection with the lessee's operation and use of the leased
premises. The cost of such insurance shall be borne by the lessee.
B. The lessee shall obtain at its own cost
and expense the following insurance placed with insurance companies authorized
to do business in the state with A.M. Best ratings of A-:VI or higher. This
rating requirement may be waived for workers compensation coverage only.
1. Workers Compensation. Workers Compensation
Insurance shall be in compliance with the Workers Compensation Law of the state
of the contractor's headquarters. Employers Liability is included with a
minimum limit of $500,000 per accident/per disease/per employee. If work is to
be performed over water and involves maritime exposure, applicable LHWCA, Jones
Act, or other maritime law coverage shall be included and the Employers
Liability limit increased to a minimum of $1,000,000. A.M. Best's insurance
company rating requirement may be waived for workers compensation coverage
only.
2. Commercial General
Liability. Commercial General Liability Insurance, including Personal and
Advertising Injury Liability, shall have a minimum limit per occurrence of
$1,000,000 and a minimum general aggregate of $2,000,000. The Insurance
Services Office (ISO) Commercial General Liability Occurrence Coverage Form CG
00 01 (current form approved for use), or equivalent, is to be used in the
policy. A claims-made form is unacceptable.
C. The General Liability Coverage policies
shall contain, or be endorsed to contain, the following provisions.
1. The state, and its political subdivisions
shall be named as an additional insured as regards negligence by the contractor
and/or the lessee. ISO Form CG 20 10 (current form approved for use), or
equivalent, is to be used when applicable. The coverage shall contain no
special limitations on the scope of protection afforded to the state, OMR, and
the board.
2. The lessee's
insurance shall be primary as respects the state, and its political
subdivisions. Any insurance or self-insurance maintained by the state, OMR, and
the board, shall be excess and non-contributory of the lessee's
insurance.
3. Any failure of the
lessee to comply with reporting provisions of the policy shall not affect
coverage provided to the state, and its political subdivisions.
4. The lessee's insurance shall apply
separately to each insured against whom claim is made or suit is initiated,
except with respect to the policy limits.
D. The Workers Compensation and Employers
Liability Coverage Policies shall contain, or be endorsed to contain, the
following provisions.
1. The insurer shall
agree to waive all rights of subrogation against the state, and its political
subdivisions losses arising from or in connection with the lessee's operation
and use of the leased premises.
E. The lessee shall provide verification of
insurance coverage in the following manner.
1. The lessee shall furnish OMR with
certificates of insurance reflecting proof of required coverage. The
certificates for each insurance policy are to be signed by a person authorized
by that insurer to bind coverage on its behalf. The certificates are to be
received and approved by OMR before work commences and upon any AESL renewal
thereafter.
2. In addition to the
certificates, the contractor and the lessee shall submit the declarations page
and the cancellation provision endorsement for each insurance policy. OMR
reserves the right to request complete certified copies of all required
insurance policies at any time.
3.
Upon failure of the lessee to furnish, deliver and maintain insurance as
provided above, the AESL, at the election of the board may be suspended,
discontinued or terminated. Failure of the lessee to purchase and/or maintain
any required insurance shall not relieve the lessee from any liability or
indemnification.
F. All
certificates of insurance of the lessee shall reflect the following.
1. The lessee's insurer will have no right of
recovery or subrogation against the state, and its political subdivisions. It
is the intention of the parties that the lessee's insurance policies shall
protect both parties and shall be the primary coverage for any and all losses
that occur under the AESL.
2. The
state, and its political subdivisions shall be named as an additional insured
as regards negligence by the contractor, the lessee or the operator of the
AESP. ISO Form CG 20 10 (current form approved for use), or equivalent, is to
be used when applicable.
3. The
insurance companies issuing the policy or policies shall have no recourse
against the state and its political subdivisions for payment of any premiums or
for assessments under any form of the policy or policies.
G. If at any time an insurer issuing any
policy does not meet the minimum A.M. Best rating, the lessee shall obtain a
policy with an insurer that meets the A.M. Best rating and shall submit another
certificate of insurance as required. Upon failure of the lessee to furnish,
deliver and maintain insurance as provided above, the AESL, at the election of
the board or OMR, may be suspended, discontinued or terminated. Failure of the
lessee to purchase and/or maintain any required insurance shall not relieve the
lessee from any liability or indemnification under the AESL.
H. Any deductibles or self-insured retentions
must be declared to and accepted by OMR. Any and all deductibles shall be
assumed in their entirety by the lessee.
I. All property losses caused by the actions
of the lessee shall be adjusted with and made payable to the state of
Louisiana.
J. The lessee or the
lessee's insurer shall submit updated proof of insurance as required by this
Subpart to OMR by January 31of each calendar year. If lessee or lessee's
insurer fails to submit proof, OMR may levy liquidated damages in the amount of
$100 per day until proof is received.
AUTHORITY NOTE:
Promulgated in accordance with
R.S.
30:124.
