City of Gustavus, Alaska
RFQ FY21-03MF
Page 4 of 11
INSURANCE REQUIREMENTS
During the term of the contract, the CONTRACTOR shall obtain and maintain in force the insurance coverage
specified in this section with an insurance company rated “Excellent” or “Superior” by A.M. Best Company or
specifically approved by the City Council.
Limits: The CONTRACTOR shall obtain insurance for not less than the following limits:
• Commercial General Liability: Coverage written on an occurrence basis with limits of not less than
$1,000,000.00 per occurrence;
• Comprehensive automobile liability: $1,000,000.00 combined single limit;
• Workers’ Compensation: $100,000 each accident, $500,000 disease-policy limit, and $100,000 dis-
ease-each employee.
Automobile Liability Insurance: All vehicles or all owned, non-owned, and hired vehicles must be insured
when the CONTRACTOR is using them to do work under this Agreement. If the CONTRACTOR submits insur-
ance covering only scheduled vehicles, then the CONTRACTOR must assure that any additional vehicles are
insured before using them in the work under this Agreement.
Workers’ Compensation: Any employee of the CONTRACTOR must be covered by workers’ compensation in-
surance during the term of the Agreement. This policy must be endorsed with a waiver of subrogation in fa-
vor of the CITY. The CONTRACTOR is not required to provide a certificate of workers’ compensation covering
the owner(s) of the CONTRACTOR’s business under the following circumstances:
Corporations – If the executive officer(s) claims an exemption, then the CONTRACTOR must provide an Execu-
tive Officer Waiver for each officer from the Alaska Department of Labor and also provide the corporate filing
with the State showing the person(s) named on the waiver is an owner. Only the person or persons who have
the State Executive Officer Waiver and who are an owner shall be permitted to do any work or be on the work
site or work area. If the CONTRACTOR permits any other person on the work area or work site or to do any
work, and that person is injured, the CONTRACTOR shall defend, indemnify, and hold harmless the City from
any and all claims and liabilities for workers’ compensation benefits of any kind and any nature, including
costs and legal fees.
Sole Proprietors, Partnerships, or LLCs – If the sole proprietor, partner, or member claims an exemption, then
the CONTRACTOR must provide the City with the business permit filing with the State of Alaska showing the
person(s) are the owner, sole proprietor, partner, or member. Only the person or persons who are an owner,
sole proprietor, partner, or member shall be permitted to do any work or be on the work site or work area. If
the CONTRACTOR permits any other person on the work area or work site or to do any work, and that person
is injured, the CONTRACTOR shall defend, indemnify, and hold harmless the City from any and all claims
and liabilities for workers’ compensation benefits of any kind and any nature, including costs and legal fees.
Alternate Coverage: A combination of primary and excess/umbrella policies may be used to fulfill the insur-
ance requirements of this section.
Additional Insured: During the contract term, the CONTRACTOR shall add and maintain the CITY as an ad-
ditional insured in the CONTRACTOR’s commercial general liability policy. This policy will provide primary
coverage for the CITY, and it will provide that a policy treats each additional insured as though the insurer
had issued separate policies.
Certificate of Insurance: Prior to commencing any work under this Agreement, the CONTRACTOR will pro-
vide a certificate of insurance in a form acceptable to the CITY showing that the CONTRACTOR has the re-
quired insurance coverage.