The ESCO’s Insurance Clause Samples
The ESCO’s Insurance clause requires the Energy Services Company (ESCO) to obtain and maintain specific insurance coverage throughout the duration of the contract. Typically, this includes types of insurance such as general liability, property damage, and workers’ compensation, with minimum coverage amounts and named insured parties specified in the agreement. This clause ensures that the ESCO is financially protected against potential risks and liabilities arising from its operations, thereby safeguarding both the ESCO and the client from unforeseen losses or claims during the project.
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The ESCO’s Insurance. Unless otherwise approved by the School District’s Office of Risk Management in writing, prior to commencing Work under the Contract, the ESCO shall, at its sole cost and expense, procure and maintain in full force and effect, covering the performance of the Work required under the Contract, the types and minimum limits of insurance specified below. All insurance shall be procured from reputable insurers who are financially responsible and authorized to do business on an admitted basis in the Commonwealth of Pennsylvania or otherwise acceptable to the School District Office of Risk Management. All insurance must be afforded by an insurance carrier with at least an A- (Excellent) rating from a reputable agency (e.g., A.M. Best). All insurance required herein, except the Professional Liability Insurance, shall be written on an “occurrence” basis and not a “claims-made” basis. IN NO EVENT SHALL SERVICES BE PERFORMED UNTIL THE REQUIRED EVIDENCE OF INSURANCE HAS BEEN FURNISHED. The insurance shall provide for at least thirty (30) calendar days’ prior written notice to be given to the School District in the event coverage is materially changed, cancelled, or non-renewed. The ESCO shall advise the School District immediately upon receiving any notice of cancellation or nonrenewal of the required insurance. The School District of Philadelphia, its commission members, board directors, officers, employees and agents, shall be named as Additional Insureds on the General Liability Insurance and the Automobile Liability Insurance policies and the policies shall be so endorsed. An endorsement is required stating that the coverage afforded the School District and its commission members, board directors, officers, employees and agents, as Additional Insureds, will be primary to any other coverage available to them, and that no act or omission of the School District shall invalidate the coverage. The ESCO will use its best efforts to obtain an endorsement from its insurance carrier that reflects that no act or omission of the School District shall invalidate the coverage. The ESCO shall notify the School District within thirty (30) days as to the status of its efforts. If this endorsement is denied, said denial must be on the letterhead of the ESCO’s insurance carrier and not its broker. The ESCO shall require its Subcontractors under this Contract to maintain the required levels of insurance.