Common use of Property and Operational Insurance Clause in Contracts

Property and Operational Insurance. A. Management Company and/or its Affiliates shall, commencing with the Management Commencement Date and continuing throughout the Term of this Agreement, procure and maintain, as an Operating Expense, with insurance companies reasonably acceptable to TRS or by legally qualifying itself as a self insurer, a minimum of the following insurance to the extent reasonably commercially available: (i) Insurance on the Hotel (including contents) against loss or damage by fire, lightning and all other risks covered by the usual standard extended coverage endorsements, with deductible limits approved by TRS, in an amount not less than ninety percent (90%) of the replacement cost thereof (Management Company acknowledges that TRS may require such insurance to be in an amount up to one hundred percent (100%) of replacement cost); (ii) Insurance against loss or damage from explosion of boilers, pressure vessels, pressure pipes and sprinklers, to the extent applicable, installed in the Hotel; (iii) Insurance on the Hotel (including contents) against loss or damage by earth movement, with deductible limits approved by TRS, in an amount to be reasonably determined by TRS consistent with local market conditions; (iv) Business interruption insurance covering loss of profits and necessary continuing expenses for interruptions caused by any occurrence covered by the insurance referred to in Section 12.01 A1, A2, and A3, of a type and in amounts and with such deductible limits as are approved by TRS; (v) Workers' compensation and employer's liability insurance as may be required under applicable laws covering all of Hotel Employees in each case, with such deductible limits as are approved by TRS; (vi) Fidelity bonds, in amounts and with deductible limits approved by TRS, covering Management Company's employees in job classifications which TRS reasonably requests be bonded; (vii) Commercial general liability insurance, including contractual liability, independent contractors, bodily injury, and broad form property damage, with a combined single limit for bodily injury and property damage of Twenty Five Million Dollars ($25,000,000) per occurrence. This requirement can be met through a combination of primary commercial general liability and umbrella/excess liability policies. Coverage shall be primary with respect to any coverage purchased by the TRS. Liquor Liability shall also be provided with a limit of Twenty Five Million Dollars ($25,000,000); (viii) Coverage against liability for bodily injury or property damage arising out of the use by or on behalf of the Management Company and/or its Affiliates of any owned, non-owned, or hired automotive equipment for a limit not less One Million Dollars ($1,000,000); and if applicable, garage keeper's legal liability insurance in the amount of One Million Dollars ($1,000,000); and (ix) Such other insurance in amounts as Management Company and TRS, in their reasonable judgment, mutually deem advisable for protection against claims, liabilities and losses arising out of or connected with the operation of the Hotel.