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Insurance Requirements

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Insurance Requirements under the State of Louisiana

The State of Louisiana Office of Risk Management maintains a procedure manual that addresses insurance requirements and indemnification agreements. Instead of reprinting the entire 40-page document here, only the portions that pertain to temporary use of premises and property are shown below. The entire manual can be found at http://doa.louisiana.gov/orm/pdf/uwcontr.pdf.

Use of Exhibit B

Use this exhibit for: Leases, Tenants, Renters
Use of premises for: Weddings, Club Functions, Meetings, Dances, Craft Exhibits, Classes, Animal Shows
Use of property for Recreational Activities: Sporting Events, Picnics, Camping

EXHIBIT B

 

INSURANCE REQUIREMENTS FOR LESSEES (INCLUDES AUTOMOBILE COVERAGE)

 
Lessee shall purchase and maintain for the duration of the contract 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.
 
A.   MINIMUM SCOPE AND LIMITS OF INSURANCE
 

  1. Workers Compensation

Workers Compensation insurance shall be in compliance with the Workers Compensation law of the State of Louisiana. 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. 
 

  1. 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 in Louisiana), or equivalent, is to be used in the policy.  Claims-made form is unacceptable.

  1. Automobile Liability

Automobile Liability Insurance shall have a minimum combined single limit per occurrence of $1,000,000. ISO form number CA 00 01 (current form approved for use in Louisiana), or equivalent, is to be used in the policy. This insurance shall include third-party bodily injury and property damage liability for owned, hired and non-owned automobiles.
 
B.   DEDUCTIBLES AND SELF‑INSURED RETENTIONS
 
Any deductibles or self-insured retentions must be declared to and accepted by the Agency.  The Contractor shall be responsible for all deductibles and self-insured retentions.
 
C.   OTHER INSURANCE PROVISIONS
 
The policies are to contain, or be endorsed to contain, the following provisions:
 
1.   General Liability Coverage
 

  1. The Agency, its officers, agents, employees and volunteers shall be named as an additional insured as regards negligence by the contractor. ISO Form CG 20 10 (current form approved for use in Louisiana), or equivalent, is to be used when applicable. The coverage shall contain no special limitations on the scope of protection afforded to the Agency.

 

  1. The Lessee’s insurance shall be primary as respects the Agency, its officers, agents, employees and volunteers.  Any insurance or self-insurance maintained by the Agency shall be excess and non-contributory of the Lessee’s insurance.

 

  1. The Lessee’s insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the policy limits.

 
2.   Workers Compensation and Employers Liability Coverage
 
The insurer shall agree to waive all rights of subrogation against the Agency, its officers, agents, employees and volunteers for losses arising from or in connection with the Lessee’s operation and use of the leased premises.
 
3.   All Coverages
 

  1. Coverage shall not be canceled, suspended, or voided by either party (the Lessee or the insurer) or reduced in coverage or in limits except after 30 days written notice has been given to the Agency.  Ten-day written notice of cancellation is acceptable for non-payment of premium.  Notifications shall comply with the standard cancellation provisions in the Lessee’s policy.

 

  1. The insurance companies issuing the policies shall have no recourse against the Agency for payment of premiums or for assessments under any form of the policies.

 

  1. Any failure of the Lessee to comply with reporting provisions of the policy shall not affect coverage provided to the Agency, its officers, agents, employees and volunteers.

 
D.   ACCEPTABILITY OF INSURERS
 
All required insurance shall be provided by a company or companies lawfully authorized to do business in Louisiana.  Insurance shall be placed with insurers with a A.M. Best’s rating of A-:VI or higher.  This rating requirement may be waived for workers compensation coverage only.
 
If at any time an insurer issuing any such 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 in the contract.
 
E.   VERIFICATION OF COVERAGE
 
Lessee shall furnish the Agency 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 the Agency before work commences and upon any contract renewal thereafter. 
 
In addition to the Certificates, Contractor shall submit the declarations page and the cancellation provision endorsement for each insurance policy.  The Agency reserves the right to request complete certified copies of all required insurance policies at any time.
 
Upon failure of the Lessee to furnish, deliver and maintain such insurance as above provided, this contract, at the election of the Agency, 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 contract.
 
F.   SUB-LEASES
 
If sub-leases are acceptable to the Agency, primary Lessee shall be responsible for verifying and maintaining the Certificates provided by each sub-lessee.  Sub-lessees shall be subject to all of the requirements stated herein.  The Agency reserves the right to request copies of sublessees’ Certificates at any time.
 
 
G.   WORKERS COMPENSATION INDEMNITY
 
In the event Lessee is not required to provide or elects not to provide workers compensation coverage, the parties hereby agree that Lessee, its owners, agents and employees will have no cause of action against, and will not assert a claim against, the State of Louisiana, its departments, agencies, agents and employees as an employer, whether pursuant to the Louisiana Workers Compensation Act or otherwise, under any circumstance.  The parties also hereby agree that the State of Louisiana, its departments, agencies, agents and employees shall in no circumstance be, or considered as, the employer or statutory employer of Lessee, its owners, agents and employees. The parties further agree that Lessee is a wholly independent contractor and is exclusively responsible for its employees, owners, and agents. Lessee hereby agrees to protect, defend, indemnify and hold the State of Louisiana, its departments, agencies, agents and employees harmless from any such assertion or claim that may arise from the performance of this contract.
 
H.   INDEMNIFICATION/HOLD HARMLESS AGREEMENT
 
Lessee agrees to protect, defend, indemnify, save, and hold harmless,  the State of Louisiana, all State Departments, Agencies, Boards and Commissions, its officers, agents, servants, employees, and volunteers, from and against any and all claims, damages, expenses, and liability arising out of injury or death to any person or the damage, loss or destruction of any property which may occur, or in any way grow out of, any act or omission of Lessee, its agents, servants, and employees, or any and all costs, expenses and/or attorney fees incurred by Lessee as a result of any claims, demands, suits or causes of action, except those claims, demands, suits, or causes of action arising out of the negligence of the State of Louisiana, all State Departments, Agencies, Boards, Commissions, its officers, agents, servants, employees and volunteers.
 
Lessee agrees to investigate, handle, respond to, provide defense for and defend any such claims, demands, suits, or causes of action at its sole expense and agrees to bear all other costs and expenses related thereto, even if the claims, demands, suits, or causes of action are groundless, false or fraudulent.