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 contractors 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 lessees 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 lessees 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 lessees 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
lessees insurer shall submit updated proof of insurance as required by this
Subpart to OMR by January 31of each calendar year. If lessee or lessees 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.
