Common use of Buyer’s Insurance Clause in Contracts

Buyer’s Insurance. ‌ (a) Owner shall procure at its own expense and maintain in full force and effect during the life of this Contract, with responsible insurance companies authorized to do business in the State of Utah, the types and limits of insurance as set forth below. Such companies shall have an A.M. Best Insurance Reports rating of A-:VII or better. Buyer, at its own cost, may purchase any additional insurance it believes necessary to protect its interests. (b) Builder’s All-Risk Insurance. Effective the earlier of 1) the point of groundbreaking at the Site or 2) the date of the first shipment of any Material, Equipment, supplies or other elements of the Work, Buyer shall obtain and thereafter at all times during performance of the Work, maintain Builder’s All-Risk Insurance. Coverage shall remain in effect until replaced by permanent property insurance which will be placed by Buyer upon Final Completion. Such Builder’s All-Risk Insurance shall insure as an insured, Seller, Contractor, their respective affiliates and Subcontractors of any tier, Buyer and its affiliates, and shall cover all property in the course of construction, including the Work, Materials and Equipment, miscellaneous equipment and furnishings (other than equipment covered under Seller’s or Contractor’s equipment floater), from physical loss or damage caused by perils covered by a Builder’s All-Risk form or equivalent coverage. Such insurance shall include mechanical and electrical breakdown coverage during start-up and testing, and other operations of the Project prior to Final Completion. The limit of liability shall be the full replacement cost of the Work including primary cost of equipment plus freight. The required deductible for all such insurance shall not exceed Two Hundred Fifty Thousand Dollars ($250,000), except as noted below, and except during the Performance Testing, when the applicable deductibles shall be $500,000 per occurrence, or in the case of turbine/generator units $1,000,000 per occurrence. The Builder’s All-Risk coverage shall not contain an exclusion for resultant damage caused by faulty workmanship, design or materials. Buyer and Seller agree, and Seller shall require Contractor and all Subcontractors to agree, to waive all rights of recovery against each other for damages caused by fire and/or other perils to the extent covered by the “All Risk” policy. (c) The following additional coverages shall be provided: (i) Flood coverage with a sublimit of $25,000,000 per occurrence and in the aggregate, with a deductible of 5% of the values at risk at the time of loss, subject to a deductible of $1,000,000; (ii) Expediting expense with a sublimit of $10,000,000 except $5,000,000 for air- freight per loss; (iii) Earthquake coverage with a sublimit of $25,000,000 per occurrence and in the aggregate, with a deductible of 5% of the values at risk at the time of loss, subject to a deductible of $1,000,000; (iv) Coverage for Equipment and Material at laydown areas or temporary storage off of the actual construction site (including freight expense) with a sub-limit of $25,000,000 per location. Should the values at risk at any location exceed this sublimit, Seller shall secure such additional coverage as may be required to insure the full values then at risk at its own cost; (v) Removal of debris with a sublimit of 10% of Project value, subject to $25,000,000 maximum per loss; and (vi) Transit coverage with a $15,000,000 limit for turbines and generators only and a $5,000,000 limit for all other property including ocean and air transit if any Equipment is to be moved by vessel or aircraft, with sublimits sufficient to insure the full replacement value. Coverage shall protect the interest of Seller and of Buyer, and their directors, officers, employees and agents.

Buyer’s Insurance. ‌ (a) Owner shall procure at its own expense and maintain in full force and effect during the life of this Contract, with responsible insurance companies authorized to do business in the State of [Utah], the types and limits of insurance as set forth below. Such companies shall have an A.M. Best Insurance Reports rating of A-:VII or better. Buyer, at its own cost, may purchase any additional insurance it believes necessary to protect its interests. (b) Builder’s All-Risk Insurance. Effective the earlier of 1) the point of groundbreaking at the Site or 2) the date of the first shipment of any Material, Equipment, supplies or other elements of the Work, Buyer shall obtain and thereafter at all times during performance of the Work, maintain Builder’s All-Risk Insurance. Coverage shall remain in effect until replaced by permanent property insurance which will be placed by Buyer upon Final Completion. Such Builder’s All-Risk Insurance shall insure as an insured, Seller, Contractor, their respective affiliates and Subcontractors of any tier, Buyer and its affiliates, and shall cover all property in the course of construction, including the Work, Materials and Equipment, miscellaneous equipment and furnishings (other than equipment covered under Seller’s or Contractor’s equipment floater), from physical loss or damage caused by perils covered by a Builder’s All-Risk form or equivalent coverage. Such insurance shall include mechanical and electrical breakdown coverage during start-up and testing, and other operations of the Project prior to Final Completion. The limit of liability shall be the full replacement cost of the Work including primary cost of equipment plus freight. The required deductible for all such insurance shall not exceed Two Hundred Fifty Thousand Dollars ($250,000), except as noted below, and except during the Performance Testing, when the applicable deductibles shall be $500,000 per occurrence, or in the case of turbine/generator units $1,000,000 per occurrence. The Builder’s All-Risk coverage shall not contain an exclusion for resultant damage caused by faulty workmanship, design or materials. Buyer and Seller agree, and Seller shall require Contractor and all Subcontractors to agree, to waive all rights of recovery against each other for damages caused by fire and/or other perils to the extent covered by the “All Risk” policy. (c) The following additional coverages shall be provided: (i) Flood coverage with a sublimit of $25,000,000 per occurrence and in the aggregate, with a deductible of 5% of the values at risk at the time of loss, subject to a deductible of $1,000,000; (ii) Expediting expense with a sublimit of $10,000,000 except $5,000,000 for air- freight per loss; (iii) Earthquake coverage with a sublimit of $25,000,000 per occurrence and in the aggregate, with a deductible of 5% of the values at risk at the time of loss, subject to a deductible of $1,000,000; (iv) Coverage for Equipment and Material at laydown areas or temporary storage off of the actual construction site (including freight expense) with a sub-limit of $25,000,000 per location. Should the values at risk at any location exceed this sublimit, Seller shall secure such additional coverage as may be required to insure the full values then at risk at its own cost; (v) Removal of debris with a sublimit of 10% of Project value, subject to $25,000,000 maximum per loss; and (vi) Transit coverage with a $15,000,000 limit for turbines and generators only and a $5,000,000 limit for all other property including ocean and air transit if any Equipment is to be moved by vessel or aircraft, with sublimits sufficient to insure the full replacement value. Coverage shall protect the interest of Seller and of Buyer, and their directors, officers, employees and agents.

Buyer’s Insurance. ‌ (a) Owner shall procure at its own expense and maintain in full force and effect during the life of this Contract, with responsible insurance companies authorized to do business in the State of Utah, the types and limits of insurance as set forth below. Such companies shall have an A.M. Best Insurance Reports rating of A-:VII or better. Buyer, at its own cost, may purchase any additional insurance it believes necessary to protect its interests. (b) Builder’s All-Risk Insurance. Effective the earlier of 1) the point of groundbreaking at the Site or 2) the date of the first shipment of any Material, Equipment, supplies or other elements of the Work, Buyer shall obtain and thereafter at all times during performance of the Work, maintain Builder’s All-Risk Insurance. Coverage shall remain in effect until replaced by permanent property insurance which will be placed by Buyer upon Final Completion. Such Builder’s All-Risk Insurance shall insure as an insured, Seller, Contractor, their respective affiliates and Subcontractors of any tier, Buyer and its affiliates, and shall cover all property in the course of construction, including the Work, Materials and Equipment, miscellaneous equipment and furnishings (other than equipment covered under Seller’s or Contractor’s equipment floater), from physical loss or damage caused by perils covered by a Builder’s All-Risk form or equivalent coverage. Such insurance shall include mechanical and electrical breakdown coverage during start-up and testing, and other operations of the Project prior to Final Completion. The limit of liability shall be the full replacement cost of the Work including primary cost of equipment plus freight. The required deductible for all such insurance shall not exceed Two Hundred Fifty Thousand Dollars ($250,000), except as noted below, and except during the Performance Testing, when the applicable deductibles shall be $500,000 per occurrence, or in the case of turbine/generator units $1,000,000 per occurrence. The Builder’s All-Risk coverage shall not contain an exclusion for resultant damage caused by faulty workmanship, design or materials. Buyer and Seller agree, and Seller shall require Contractor and all Subcontractors to agree, to waive all rights of recovery against each other for damages caused by fire and/or other perils to the extent covered by the “All Risk” policy. (c) The following additional coverages shall be provided: (i) Flood coverage with a sublimit of $25,000,000 per occurrence and in the aggregate, with a deductible of 5% of the values at risk at the time of loss, subject to a deductible of $1,000,000; (ii) Expediting expense with a sublimit of $10,000,000 except $5,000,000 for air- freight per loss; (iii) Earthquake coverage with a sublimit of $25,000,000 per occurrence and in the aggregate, with a deductible of 5% of the values at risk at the time of loss, subject to a deductible of $1,000,000; (iv) Coverage for Equipment and Material at laydown areas or temporary storage off of the actual construction site (including freight expense) with a sub-limit of $25,000,000 per location. Should the values at risk at any location exceed this sublimit, Seller shall secure such additional coverage as may be required to insure the full values then at risk at its own cost; (v) Removal of debris with a sublimit of 10% of Project value, subject to $25,000,000 maximum per loss; and (vi) Transit coverage with a $15,000,000 limit for turbines and generators only and a $5,000,000 limit for all other property including ocean and air transit if any Equipment is to be moved by vessel or aircraft, with sublimits sufficient to insure the full replacement value. Coverage shall protect the interest of Seller and of Buyer, and their directors, officers, employees and agents.