Vendor Insurance Requirements - Current

Insurance Requirements | Vendor 
 
Insurer Qualifications. Without limiting any obligations or liabilities of the Vendor, the 
Vendor shall purchase and maintain, at its own expense, hereinafter stipulated minimum 
insurance with insurance companies duly licensed by the State of Arizona with an AM 
Best, Inc. rating of A- or above with policies and forms satisfactory to the Town. Failure 
to maintain insurance as specified herein may result in termination of services at the 
Town’s option.  
 
No Representation of Coverage Adequacy. By requiring insurance herein, the Town does 
not represent that coverage and limits will be adequate to protect the Vendor. The Town 
reserves the right to review any and all of the insurance policies and/or endorsements but 
has no obligation to do so. Failure to demand such evidence of full compliance with the 
insurance requirements or failure to identify any insurance deficiency shall not relieve the 
Vendor from, nor be construed or deemed a waiver of, its obligation to maintain the 
required insurance at all times during the performance of work for the Town of 
Wickenburg. 
 
Insurance Requirements. Vendor and subcontractors shall procure and maintain until all 
of their obligations have been discharged, including any warranty periods, are satisfied, 
insurance against claims for injury to persons or damage to property which may arise 
from or in connection with the performance of the work hereunder by the Vendor, his 
agents, representatives, employees or subcontractors.  
  
The insurance requirements herein are minimum requirements and in no way limit the 
indemnity covenants.  The Town in no way warrants that the minimum limits contained 
herein are sufficient to protect the Vendor from liabilities that might arise out of the 
performance of the work by the Vendor, its agents, representatives, employees or 
subcontractors, and Vendor is free to purchase additional insurance.  If the Department 
Head, Risk Manager or Town Manager determines that the nature of the work poses extra 
risk, the Town may require greater insurance coverage.   
 
Minimum Scope and Limits of Insurance. Vendor shall provide coverage as required with 
limits of liability not less than those stated below. The Department Head in conjunction 
with the Town’s Risk Manager shall determine the required coverage for each project or 
vendor. The Town of Wickenburg shall be named as an additional insured, and vendor’s 
policy must be primary and noncontributory and waive subrogation. Appropriate 
endorsements shall be submitted by the Vendor.

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1. Commercial General Liability – Occurrence Form. Policy shall include bodily injury, 
property damage, personal injury and broad form contractual liability coverage. 
 
General Aggregate 
 
 
 
 
 
$2,000,000 
Products – Completed Operations Aggregate 
           $2,000,000 
Personal and Advertising Injury 
 
 
 
$1,000,000 
Each Occurrence 
 
 
 
 
 
$1,000,000 
 
The policy shall be endorsed to include the following additional insured language: 
“The Town of Wickenburg, its departments, agencies, boards, commissions, 
officers, officials, agents, and employees shall be named as additional 
insureds with respect to liability arising out of the activities performed by or 
on behalf of the Vendor". 
 
2. Business Automobile Liability. Bodily Injury and Property Damage for any owned, 
hired, and/or non-owned vehicles used in the performance of service to the Town 
of Wickenburg. 
 
Combined Single Limit (CSL)   
 
 
 
$1,000,000 
 
The policy shall be endorsed to include the following additional insured language: 
“The Town of Wickenburg, its departments, agencies, boards, commissions, 
officers, officials, agents, and employees shall be named as additional 
insureds with respect to liability arising out of the activities performed by or 
on behalf of the Vendor, involving automobiles owned, leased, hired or 
borrowed by the Vendor". 
 
3. Worker's Compensation and Employers' Liability. 
 
Workers' Compensation Statutory Employers' Liability 
 
Each Accident 
 
 
 
 
 
 
$ 100,000 
Disease – Each Employee 
 
 
 
 
$ 100,000 
Disease – Policy Limit  
 
 
 
 
$ 500,000 
 
4. Professional Liability (Errors and Omissions Liability). 
 
Each Claim  
 
 
 
 
 
 
$1,000,000 
Annual Aggregate  
 
 
 
 
 
$2,000,000 
 
a. In the event that the professional liability insurance required is written on a 
“claims made” basis, Vendor warrants that any retroactive date under the policy 
shall precede any work; and that either continuous coverage will be maintained, 
or an extended discovery period will be exercised for a period of three (3) years 
beginning at the time work is completed and accepted.

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b. The policy shall cover professional misconduct or lack of ordinary skill for those 
positions provided. 
 
Additional Insurance Requirements. The policies shall include, or be endorsed to include, 
the following provisions: 
 
The Town of Wickenburg, its departments, agencies, boards, commissions, 
officers, officials, agents, and employees wherever additional insured status is 
required. Such additional insured shall be covered to the full limits of liability 
purchased by the Vendor, even if those limits of liability are in excess of those 
required. The Vendor's insurance coverage shall be primary insurance with 
respect to all other available sources. Coverage provided by the Vendor shall not 
be limited to the liability assumed under the indemnification provisions.   
 
Notice of Cancellation. Each insurance policy required shall provide the required 
coverage and shall not be suspended, voided, canceled, or reduced in coverage or in 
limits except after thirty (30) days prior written notice has been given from the Vendor to 
the Town. Such notice shall be sent directly to the Town Risk Manager. 
 
Acceptability of Insurers. Insurance is to be placed with duly licensed or approved non-
admitted insurers in the state of Arizona with an “A.M. Best” rating of not less than A-. 
The Town in no way warrants that the above-required minimum insurer rating is sufficient 
to protect the Vendor from potential insurer insolvency. 
 
Verification of Coverage. Vendor shall furnish the Town with a declarations page of the 
liability insurance policy, as well as any amendments or riders in order to verify contractual 
insurance requirements are being satisfied.    
 
All certificates and endorsements are to be received and approved by the Town’s 
Procurement Office before work commences. Each insurance policy required must 
be in effect at or prior to commencement of work and remain in effect for the 
duration of the project. Failure to maintain the insurance policies or to provide 
evidence of renewal is a material breach of contract. 
 
All certificates shall be sent directly to the Town’s Procurement Office. The Town 
project/contract number, if applicable, and project description shall be noted on the 
certificate of insurance. The Town reserves the right to require complete, certified 
copies of all insurance policies at any time.   
 
Subcontractors. Vendors’ certificate(s) shall include all subcontractors as insureds under 
its policies or Vendor shall furnish to the Town separate certificates and endorsements 
for each subcontractor. All coverages for subcontractors shall be subject to the minimum 
requirements identified above.

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Approval. Any modification or variation from the insurance requirements shall be made 
by the Town Manager, whose decision shall be final. Such action will not require a formal 
Council action, but may be made by administrative action. 
 
Certificate Holder. The Town of Wickenburg needs to be listed as the certificate holder at 
the following address: 
Town of Wickenburg 
Attention: Procurement Office 
155 N. Tegner Street, Suite A 
Wickenburg, AZ  85390