ALAMANCE COUNTY, NORTH CAROLINA
Certificates of Insurance / Proof of Insurance
What is a Certificate of Insurance?
A certificate of insurance is a document used to provide information on specific insurance coverage. The certificate provides verification of the insurance and usually contains information on types and limits of coverage, insurance company, policy number, additional named insured, and the policies’ effective periods.
Although the certificate should not be substituted for information contained in the actual insurance policies, it is usually a reliable source of information or proof of insurance coverage.
Certificates are usually requested by opposite parties in an agreement, contract, or transaction to make certain the other party has the appropriate insurance coverage.
Contracts requiring evidence of insurance and additional insured coverage for third parties should follow the procedures set forth in the attachment, “ Insurance Amount Required and Classification” (See Attachment 1).
Contractors / Service Providers on County Property
Why We Require Insurance
There are obvious reasons for the County to require insurance. The County uses a written contract form for County contracts that includes both an insurance requirement and an indemnity clause. Insurance is for the benefit of the Contractor as much as it is for the County. Contractors/ Service Providers must sign an agreement which has an indemnity agreement that requires the Contractors/Service Providers to indemnify and defend the County for any loss or damage caused by the Contractors/Service Providers, sub-contractors or anyone in their party. The insurance provides the ability to meet that obligation. It also protects the Contractor/Service Provider against risks. For example, if someone tripped over an electric extension cord that the Contractor/Service Provider brought onto County property to run a tool, the person who tripped over the cord might sue the Contractor/Service Provider as well as the County. The Contractor/Service Provider would thus also benefit from insurance coverage.
The requirement for insurance also provides protection for the County for property damage done to its facilities by the Contractors / Service Providers through work performed pursuant to contracts.
Insurance Requirements/ Contractors &Service Providers
All Contractors or Service Providers should have a contract for services with the County. A letter agreement may serve as the contract, but must be signed by both parties. In addition to the basic information of “who, what, where, when and why” for services rendered, the contract should include a paragraph on indemnity and a paragraph on insurance. While these are elements related (the insurance guarantees that the named party will have the resources to meet its indemnity agreements) they are legally distinct, and must not be linked in the contract, or placed in the same paragraph.
The paragraphs should read:
Indemnity Agreement
To the fullest extent permitted by Law, the (named party) will defend, indemnify and hold harmless (legal name: Alamance County), including its officers, agents and employees from and against claims, damages, losses and expenses, including but not limited to attorney's fees, arising out of, or from the performance of its operations or services, or any act, omission, claim or loss of any of its officers, agents and
employees or any other party they are responsible for, regardless of whether or not such claim, damage, loss or expense is caused in part by a party indemnified hereunder. Such obligation shall not be construed to negate, abridge or reduce other rights or obligations of indemnity that would otherwise exist in the absence of this agreement.
Insurance Requirements
At Contractor’s / Service Providers, sub-contractors or anyone in their party sole expense shall procure and maintain the minimum insurances, except as noted in attachment 1, with insurers licensed in North Carolina. Alamance County reserves the right to require higher insurance requirements as deemed necessary for the performance of all Alamance County projects and service contracts. The following insurance is required with these minimum limits of liability:
1. Commercial General Liability (covers an insured exposure to the public relating to products, premises and complete operations)- $1,000,000 per occurrence / $2,000,000 aggregate (most paid out in policy term [one year])
2. Commercial Auto Liability (covers an insured for bodily injury and property damage to a third party including owned, non-owned and hired vehicles)*- $1,000,000 per occurrence 3. Workers Compensation [covers all employees, including Employer’s Liability ] required for
all contractors / service providers (with underwriters desirability classification color of silver, yellow, red and black) – All others Statutory limits**: $500,000 per accident; $500,000 Disease- Each Employee; $500,000 Disease Policy Limit
4. Professional Liability - $1,000,000 CSL per occurrence (when required)
and maintain throughout the Contract Time Builders Risk Insurance coverage for one hundred percent (100%) of the Contract Price. (when required)
Additional Insurance Requirements
The (named party) must provide proof of insurance through the issuance of a certificate of insurance showing the above coverage’s and limits specified. If the Contractor or Service Provider carries higher limits, such limits must be shown on the certificate. The County has the right to demand a certified copy of any insurance policy. Certificates must be filed with the County Purchasing Department before the (named party) is permitted on County property. Contractors / Service Providers are required to provide thirty (30) day written notice of any lapses or changes in coverage to Alamance Purchasing Department. . Failure of Contractors / Service Providers to provide timely evidence of insurance, or to place coverage with insurance, or to place coverage with insurance companies acceptable to the County, shall be viewed as Contractor’s delaying performance entitling the County to all appropriate remedies under the law including termination of the contract.
Certificate Holder shall be listed as follows:
Alamance County; Purchasing Department; Attention: Stuart Keeler, Purchasing Director; 124 West Elm Street; Graham, NC 27253
Endorsements
The (named party) is required to add the County to its General Liability and Automobile Liability insurance policies with the following wording "Alamance County, its officers, agents and employees
are to be designated as “additional named insured” with respect to the general liability insurance policy.” Endorsements for Commercial General and Liability must be attached with the Certificate of
Insurance.
This insurance requirement shall not be construed as limiting in any way the extent to which (named party) may be held responsible for the payment of damages to any persons resulting from its operations or the activities of any person or persons for which it is liable.
* If the organization does not own any motor vehicles, it need only show coverage for non-owned and
hired motor vehicles.
** / *** If the organization does not have any paid employees (e.g. a volunteer organization) no workers
ATTACHMENT 1
ALAMANCE COUNTY INSURANCE REQUIREMENTS FOR
INSURANCE AMOUNT REQUIRED and CLASSIFICATION
The following “Insurance Amount Required and Classification” information set forth below has been adopted by Alamance County for greater flexibility in lowering the County’s Contractor/Service Provider insurance requirements according to the risk factor assessed for the Contractor/Service Provider by insurance industry-wide standards. Listed below under “Classification” is a list of commonly used trades and services for which the insurance requirements assessment (per category ranking) shall be utilized for County Contractors / Service Providers. If your trade or service is not listed please notify the Alamance County Purchasing Director for an “Insurance Amount Required and Classification” category
determination. Alamance County reserves the right to require higher insurance amounts as deemed necessary for the performance of all Alamance County projects and services.
INSURANCE AMOUNT REQUIRED
(Commercial General &Auto Liability) Statutory Limits
Category “A” 300K Per Occurrence
Category “B” 500K Per Occurrence
Category “C” 1M Per Occurrence
Workman's Compensation Requirements
Category “A”- Workman's Comp. as required by NC Law N.C. G.S.Ch. 97 Category “B”- Workman's Comp. is required - No Exceptions 500K
Category “C”- Workman's Comp. is required - No Exceptions 500K
CLASSIFICATION
INSURANCE AMOUNT REQUIRED
Advertising Sign Co. Outdoors C
Air Cond. Sys. Or Equip Dealers or Dist. & Inst., Service or Repair A Alarms & Alarm Systems-Installation Servicing or Repair A
Athletic Programs-Amateur C
Auctioneers (all types) C
Automobile Repair Paint/Body Shop A
Automobile Repair or Service Shops-Mechanical A
Automobile Towing Service C
Boiler Inspection, Installation, Cleaning or Repair A
Bridge or Elevated Highway Const.-Concrete C
Building Structures Raising or Moving C
Cable Installation in Conduits or Subways C
Carpentry NOC A
Carpentry - Inside A
Carpet, Rug, Furniture & Up. Cleaning-on Customers Premises B
Ceiling or Wall Installation-Metal A
Chimney Cleaning C
Cleaning or Renovation Outside of Buildings C
Clubs-Civic, Service or Social-Owned or Leased Bldgs. B
Dam or Reservoir Construction C
Debris Removal-Construction Site C
Decorating A
Dike, Levee or Revetment Construction C
Door, Window or Assembled Millwork-Installation-Metal A
Drilling C
Drilling-Water B
Driveway, Parking Area or Sidewalk-Paving A
Dry Wall or Wallboard Inst. A
Electric Light or Power Line Construction C
Electrical Apparatus-Inst., Service or Repair A
Electrical Contractors A
Electrical Work Within Buildings A
Elevator, Escalator Insp., Installations, Service or Repair C
Employment Agency C
Engineers or Architects Consulting-Not Engaged in Actual Const. A
Excavation B
Exercise or Playground Equipment Mfg. A
Exhibitions-Outside (all types) C
Explosives or Fireworks Mfg C
Fair Grounds C
Fire Depts.-Paid C
Fire Depts.-Volunteer C
Fire Extinguishers-Service, Refilling & Testing A
Fire Suppression Systems-Inst., Service or Repair B
Fireproofing-Structures C
Floor Covering Installation-Not Ceramic or Stone C
Floor Covering Mfg.-not Carpet, Ceramic or Stone B
Floor Covering Stores A
Floor Waxing B
Forging Work C
Fumigating C
Furniture or Fixtures-Inst. in Offices & Stores-Portable, Metal or
Wood A
Furniture or Woodwork Stripping, Refinishing or Repairing Shop Only C
Gas Dealers & Distributors C
Gas Pumps & Related Equipment N/A
Glass Dealers & Glaziers B
Grading of Land A
Grandstands or Bleachers C
Heating & Air Cond. Equip.-Dealers & Dist. W/Inst., Service & Repair
(all ) A
Inspection & Appraisal Company C
Insulation Work-Mineral B
Insulation Work-Organic or Plastic B
Interior Decorators A
Irrigation or Drainage System Const. C
Janitorial Services B
Landscape Gardening A
Lawn Sprinkler Installation A
Lithographing A
Locksmiths A
Metal Erection-Non-Structural B
Metal Erection-Structural B
Metal Erection-Frame Structures Iron Word in Outside Bldgs C
Metal Erection-Lock Gates, Gas Holders, Tanks C
Office Machines or Appliances-Retail or Wholesale with Repair A
Oil or Gas Lease Operations-Natural Gas (all types) C
Painting -Exterior-3 stories or less A
Painting -Exterior-Over 3 stories C
Painting-Interior A
Painting-Tanks C
Recycling Collection Centers C Refrigeration Equip. Dealers & Dist. & Inst., Service & Repair A
Roofing-Commercial C
Salvage Operational (all types) C
Sand & Gravel Digging B
Sandblasting C
Scaffold Mfg. or Rental C
Septic Tank Systems-Cleaning B
Septic Tank Systems-Service, Installation & Repair B
Sewer Cleaning B
Sewer Mains or Connections Construction B
Sewers C
Sheet Metal Work-Outside B
Siding Installation A
Sign Erection, Inst. Or Repair B
Sign Painting or Lettering-Inside A
Sign Painting or Lettering on Bldgs. Or Stuctures B
Steam Mains or Connections Construction C
Steam Pipe or Boiler Insulation C
Stone Crushing C
Stone Cutting or Polishing C
Street & Road Const. & Reconst. B
Street Cleaning B
Street, Road Paving or Repaving, Surfacing or Resurfacing B Streets, Roads, Highways-Existence & Maintenance Hazard B
Surveyors A
Swimming Pools-Inst., Service & Repair Above Ground C Swimming Pools-Inst., Service & Repair Below Ground C
Tank Const., Inst., Erection or Repair-Metal C
Television or Radio Receiving Serv. Inst., & Repair A
Tent or Canvas Goods-Erection, Removal or Repair B
Tile, Stone, Marble Mosaic or Terrazzo Work-Interior A
Tires-Retreading or Recapping C
Tunneling C
Underpinning Bldgs. Or Structures C
Vending Machine Operations (all types) B
Waste & Reclaimed Materials C
Water Softening Equip.-Inst., Service or Repair B
Water Treatment Plants C
Waterproofing (all types) C
Welding or Cutting B
Window Cleaning C
Wire Drawing B
Wood Preserving C
Wrecking-Buildings or Structures (all types) C
Youth Recreation Programs C
