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Insurance Requirements for Construction Projects

The following are Loyola University New Orleans' minimum insurance standards for contractors involved in large construction or renovation projects for the University:

  • All contractors/vendors shall procure, pay for, and maintain the minimum insurance coverage set forth below for the entire term of the purchase agreement or contract. All insurance coverage is subject to the approval of the University and shall be issued by an insurance company authorized to do business in the State of Louisiana and which maintains an A.M. Best rating of A:X or better.
  • All insurance required herein shall contain a waiver of subrogation in favor of the University.
  • All insurance required herein, except Workers' Compensation, shall name Loyola University New Orleans as an additional insured.

Required Insurance Coverage

Commercial General Liability Insurance (ISO Form CG0001) including Personal Injury Liability, Independent Contractor's Liability, Contractual Liability, Product Liability, and Completed Operations Liability, covering but not limited to, the liability assumed under the indemnification provisions of the Contract, in the following amounts:

  1. 1. Limits
    a. $2,000,000 General Aggregate Limit
    b. $2,000,000 Products/Completed Work Limit
    c. $1,000,000 Personal/Advertising Injury Limit
    d. $1,000,000 Each Occurrence Limit
    e. $500,000 Fire Damage Limit (any one fire)
    f. $10,000 Medical Payments Limit (any one person)
  2. 2. Deductibles are not permitted without University's express written consent. The Contractor shall be responsible for any payment in a timely manner all claims, damages, costs, and expenses, including, but not limited to, attorney's fees that are not covered because of any applicable deductible(s).
  3. 3. Endorsements which restrict or reduce coverage as provided by the specified ISO Form CG0001 shall not be attached without University's express written consent.
  4. 4. ISO Form CG2503, "Aggregate Per Project" form or University-approved equivalent shall be attached in order that the General Aggregate Limit shall apply separately to the work performed under the contract.
  5. 5. If any excavation work is included in the contract, it is understood and agreed that the Contractor's liability policy shall not contain an exclusion for XCU (Explosion, Collapse, and Underground) coverage.

Business Automobile Liability Insurance (ISO Form CA0001) applicable to owned, non-owned, and hired vehicles:

  1. 1. Combined Single Limit $1,000,000 Each Occurrence
  2. 2. Deductibles are not permitted without University's express written consent. The Contractor shall be responsible for any pay in a timely manner all claims, damages, costs, and expenses, including, but not limited to, attorney's fees which are not covered because of any applicable deductible(s).
  3. 3. Endorsements which restrict or reduce coverage as provided by the specified ISO Form CA0001 shall not be attached without University's express written consent.

Excess Liability, Umbrella Insurance Form (applying excess of primary underlying business automobile liability, commercial general liability, and employer's liability coverages):

Limits (BI and PD combined) - $5,000,000
Each Occurrence Limit - $5,000,000
General Aggregate Limit - $5,000,000
Products/Completed Work Limit - $5,000,000

Workers Compensation and Employer's Liability Insurance in accordance with the statutes of Louisiana covering the requirements for all of the Contractor's employees working at the site of the project and, in case any work is sublet, the Contractor shall require the subcontractors to provide Workers Compensation Insurance for all of the latter's employees, unless such employees are covered by the protection afforded by the Contractor. Employer's Liability Insurance shall be in an amount not less than $1,000,000 per occurrence.

Builder's Risk Insurance for Fire and Extended Coverage (All Risk with Replacement Cost Coverage Form) shall be maintained by the Contractor upon the entire part of the structure on which the work of the contract is to be done in one hundred (100%) percent of the insurable value of the Contract amount thereof, including items of labor and materials connected therewith. This insurance shall include the interests of the University, Contractor, subcontractors, and sub-subcontractors, and shall insure against the perils of fire and extended coverage, and shall include "all risk" insurance for physical damage, including, but not limited to, windstorm, hailstorm, tornado, theft, vandalism, and malicious mischief coverage. The property insurance shall include the fees of an architect necessary to be incurred in repairs or reconstruction of the Work.

Evidence of Coverage

All insurance required herein shall contain a waiver of subrogation in favor of the University and shall name Loyola University New Orleans as additional insured. The contractor must furnish the University with certificates of insurance as evidence of satisfaction of the above insurance requirements prior to commencement of operations under the contract. Such certificates shall verify the waiver of subrogation in favor of the University, the naming of the University as additional insured, and shall specify that in the event of cancellation or material change in coverage, at least (30) days prior notice will be given to the University concerning such event.

Failure to Comply

In the event that the Contractor fails to maintain and keep in force the insurance as herein provided, the University shall have the right to cancel and terminate the established contract forthwith and without notice.