EXHIBIT C
INSURANCE REQUIREMENTS
Coverage shall be at least as broad as:
Commercial General Liability (“CGL”): Insurance Services Office (“ISO”) Form CG 00 01 covering CGL on an occurrence basis, including products and completed operations, property damage, bodily injury, and personal & advertising injury with limits no less than $1,000,000 per occurrence. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this project/location (ISO CG 25 03 or 25 04) or the general aggregate limit shall be twice the required occurrence limit. Lessee shall maintain fire legal liability insurance on the leased property with extended coverage and debris-cleanup provisions in an amount not less than $1,000,000, and in any event that covers at least ninety percent (90%) of the actual cash value of all Improvements, Additional Improvements, and betterments in or on the Premises. Products and completed operations coverage is not required provided that Lessee does not engage in manufacturing or providing other services. Lessee is required to maintain employment practices coverage if it has or acquires any employees.
Workers’ Compensation: Workers’ Compensation insurance, due to Lessee having employees, as required by the State of California, with Statutory Limits, and Employer’s Practices Liability Insurance with limits of no less than $1,000,000 per incident for bodily injury or disease.
Personal Property: Property insurance against all risk of loss to any Lessee-owned or controlled property, including, without limitation, personal property at full replacement cost with no coinsurance penalty provision and naming City of Salinas as a loss payee for the Improvements, Additional Improvements, and betterments. Any fire legal liability coverage maintained shall also name Gold Coast Aviation Service, Inc. (“Lessee”), and the City of Salinas as additional insureds or as loss payees.
Automobile Liability: Insurance for any Lessee-owned or hired automobiles, and non-owned automobiles, with $1,000,000 each occurrence for bodily injury and property damage. (This is required if Lessee is permitted to drive vehicles on any airport airside locations.) Hangar-Keepers Liability: This is required if Lessee has any aircraft of others in its care, custody, and/or control (such as storing a friend’s aircraft, managing training aircraft, managing a client’s aircraft, or etc.) in an amount of $1,000,000 for each aircraft for each occurrence.
Other Insurance Provisions:
All the insurance policies in Section A above are to contain, or be endorsed to contain, the following provisions:
Additional Insured Endorsement – Except for the worker’s compensation policy, all such policies shall include (i) the City of Salinas, its elected and appointed officials, officers, employees, representatives, volunteers, and agents (hereinafter collectively the “City”) as Additional Insureds via endorsement.
Waiver of Subrogation Endorsement - Lessee hereby grants to City a waiver of subrogation which any insurer may acquire against City, its Released and Indemnified Parties, or City, from Lessee. Lessee agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation but this provision applies regardless of whether or not the City has received a waiver of subrogation endorsement from the insurer. The Workers’ Compensation policy shall be endorsed with a waiver of subrogation in favor of the City for all work performed by the Lessee, its employees, agents, and subcontractors Primary and Non-contributing Coverage - All required insurance policies and all renewals thereof shall be primary and non-contributing; the required insurance policy shall be primary over any other insurance, deductible, or self-insurance maintained by the City and non- contributory with respect to the City.
Cancellation - Required insurance policies shall not be canceled or the coverage reduced until a thirty (30) day written notice of cancellation has been served upon the City except ten (10) days shall be allowed for non-payment of premium.
Broader Coverage/Higher Limits - If the Lessee or Permit Holder maintains broader coverage and/or higher limits than the minimums shown above, the Lessee or Permit Holder requires and shall be entitled to the broader coverage and/or higher limits maintained by the Lessee or Permit Holder. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City.
Acceptability of Insurers - Insurance is to be placed with insurers authorized to conduct business in the state with a current A.M. Best rating of no less than A-: VII, unless otherwise acceptable to the City.
Verification of Coverage – Lessee or Permit Holder shall furnish the City original Certificates of Insurance including an additional insured endorsement and all required amendatory endorsements (or copies of the applicable policy language affecting coverage required by this clause) and a copy of the Declarations and Endorsement Pages of the liability policies listing all policy endorsements to City before work begins. However, failure to obtain the required documents prior to the work beginning shall not waive the Permit Holder’s obligation to provide them. The City reserve the right to require complete copies of all required insurance policies, including endorsements, required by these specifications, at any time.
Special Risk or Circumstances - City reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances.
Self-Insured Retentions - Self-insured retentions must be declared to and approved by the City. At the option of the City, the Lessee shall provide coverage to reduce or eliminate such self-insured retentions as respects the City, its officers, officials, employees, and volunteers; or the Lessee shall provide evidence satisfactory to the City guaranteeing payment of losses and related investigations, claim administration, and defense expenses. The policy language shall provide, or be endorsed to provide, that the self-insured retention may be satisfied by either the named insured or City of Salinas. All such insurance shall be by policy or included by endorsement, waiver of subrogation rights in favor of the City. Lessee hereby covenants and agrees to the same, and each agrees to and shall be responsible hereunder.
Sublessees, Contractors, and Subcontractors – Lessee shall require all sublessees, contractors, and subcontractors who perform work on the Premises to maintain general liability insurance in an amount of no less than $1 million combined single limit per occurrence which complies with all of the provisions in this Insurance section above, including providing an additional insured endorsement in favor of the City, , and Lessee shall provide City, with copies of such insurance certificates and endorsements at the initiation of any sublease between Lessee and a sublessee as well as upon request by the City.
Furthermore, before commencing or allowing commencement of any work of improvement, Lessee shall ensure that all of its employees and/or all employees of any sublessees, contractors and subcontractors, are covered by workers’ compensation insurance with waivers of subrogation in place via policy or endorsement in favor of City. 817\392454.2817\392454.2E- PAGE 1E- PAGE 1
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