Insurance Requirements


1. Standard Insurance Requirements –Includes Service Contracts1 at any level and Low2 to Medium Hazard3 Construction Contracts < $250,000: 

The Contractor, and any and all of his/her subcontractors, shall not commence work under this contract until he/she has obtained the insurance required under this paragraph and any subsequent contract. All coverages shall be with insurance companies licensed and admitted to do business in the State of Michigan. All coverages shall be with insurance carriers acceptable to the County of Ingham and rated A+ (Superior) or A or A- (Excellent) by the A.M. Best Company (www.ambest.com).   

a)    Worker's Compensation Insurance: The Contractor shall procure and maintain during the life of this contract, Workers’ Compensation Insurance, including Employers Liability Coverage, in accordance with all applicable Statutes of the State of Michigan.  

b)    Commercial General Liability Insurance: The Contractor shall procure and maintain during the life of this contract, Commercial General Liability Insurance on an “Occurrence Basis” with limits of liability not less than $1,000,000 per occurrence and/or aggregate combined single limit for Personal Injury, Bodily Injury and Property Damage. Coverage shall include the following extensions: (A) Contractual Liability; (B) Products and Completed Operations; (C) Independent Contractors Coverage; (D) Broad Form General Liability Extensions or equivalent, if not already included; (E) Deletion of all Explosion, Collapse, and Underground (XCU) Exclusions, if applicable; (F) Per contract aggregate.                  

c)    Motor Vehicle Liability Insurance: The Contractor shall procure and maintain during the life of this contract, Motor Vehicle Liability Insurance, including applicable No-Fault coverages, with limits of liability of not less than $1,000,000 per occurrence combined single limit for Bodily Injury and Property Damage. Coverage shall include all owned vehicles, all non-owned vehicles and all hired vehicles.                

d)    Additional Insured: Commercial General Liability and Vehicle Liability, as described above, shall include an endorsement stating the following:  

“Additional Insureds: The County of Ingham, including all elected and appointed officials, all employees and volunteers, all boards, commissions and/or authorities and their board members, including employees, and volunteers thereof.   
The coverage shall be primary to the Additional Insureds, and not contributing with any other insurance or similar protection   available to the Additional Insureds, whether other available coverage is primary, contributing or excess.” 

e)    Cancellation Notice: All insurances described above shall include an endorsement stating the following: “It is expressly understood and agreed that the Contractor shall provide thirty (30) days advanced written notice of cancellation, non-renewal, reduction and/or material change in any of the Contractor's insurance coverages to Ingham County Purchasing Department, P.O. Box 319, Mason, Michigan 48854.” 

f)    Proof of Insurance: The Contractor shall provide the County of Ingham at the time the contracts are returned by him/her for execution, two (2) copies of the aforementioned Certificates of Insurance and/ Policies, acceptable to the County. If so requested, certified copies of all policies will be furnished.  The Contractor shall provide the County evidence that all subcontractors are included under the contractor’s policy. 

If any of the above coverages expire during the term of this contract, the Contractor shall deliver renewal certificates and/or policies to the County of Ingham at least ten (10) days prior to the expiration date. 

Send a Certificate of Insurance to the Department you are doing work for and  Ingham County, c/o Purchasing Department, PO Box 319, Mason MI 48854 or email jbuckmaster@ingham.org

2. Insurance Requirements for Low2 to Medium Hazard3 Construction Contracts $250,000 to $500,000, in addition to the standard insurance listed above, requires the following increases in liability coverage: 

a)    Commercial General Liability from $1,000,000 to $2,000,000.
b)    Motor Vehicle Liability from $1,000,000 to $2,000,000.  

3. Insurance Requirements for Low2 to Medium Hazard3 Construction Contracts > $500,000, in addition to the standard insurance listed above, requires the following increases in liability coverage:

a)    Commercial General Liability from $1,000,000 to $3,000,000.
b)    Motor Vehicle Liability from $1,000,000 to $3,000,000.

4. Insurance Requirements for High4 or Special Hazard5 Construction Contracts at any dollar level: 

a)    The County’s Risk Manager and/or Legal Counsel will be consulted to achieve proper protection for these types of contracts.  

b)    Under certain circumstances, the Contractor shall be required to procure and maintain during the life of the contract, a separate Owners and Protective Liability (OCP) Policy with limits of liability not less than $________ (To Be Determined) per occurrence and aggregate.  The County shall be “Named Insured” on said coverage.  Thirty (30) days Notice of Cancellation shall apply to this policy. 

5. Supply Contracts6 at any dollar level, requires the above listed standard insurance with the following changes:

a)    Commercial General Liability, including Products and Completed Operations and Contractual Liability; occurrence based coverage only.

6. Professional Services Contracts7 at any dollar level, in addition to the standard insurance listed above, requires the following additional liability coverage:

a)    Professional Liability/Errors and Omissions Insurance: The Contractor shall procure and maintain during the life of this contract, Professional Liability insurance in an amount not less than $1,000,000 per occurrence and aggregate.  If this policy is Claims Made Form, then the Contractor shall be required to keep the policy in force, or purchase “tail” coverage, for a minimum of three (3) years after the termination of this contract.

Definitions:

1Service Providers – Vendors who have a fairly high labor factor in their work with the County.  Examples include accounting firms, law firms, consultants, vending services, and caterers.  Certain service contracts, for example, tree trimming/removal may require additional liability coverage.

2Low Hazard – Artisan-type contractors such as carpenters, plumbers (no more than digging or trenching 6” deep), painters, and small repair or service type contractors.

3Medium Hazard – Roofers, plumbing with minor digging, cement contractors, grading, landscapers, building maintenance/cleaning contractors and brick layers.

4High Hazard – Excavation and underground contractors, road contractors, erection and welding projects, all building, parks and recreation playgrounds construction and renovation, and all infrastructure construction and renovation.

5Special Hazard – Includes major building projects, major infrastructure projects, contracts involving environmental and asbestos exposures and similar extra-high hazard operations.

6Supply Vendors – Vendors that have little or no labor factor in their sale to the County.  Examples include office supplies, furniture and fixtures, and materials that are consumed within a short period of time. 

7Professional Services Contracts – Includes architects, engineers, CPAs, medical professionals, and legal firms.