California State University, Chico

A Department of Business & Finance

Risk Management: Minimum Insurance Requirements for Public Works Construction Contracts

Risk Management is committed to minimizing losses that may arise from or interfere with California State University, Chico's pursuit of its mission to educate students.

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Public Works Construction Contracts Insurance Requirements from Executive Order No. 849

The insurance requirements for public works construction contracts shall be as specified in the general conditions for capital outlay projects and are summarized as follows:

  • General Liability:  comprehensive or commercial form minimum limits each Occurrence $1,000,000, General Aggregate $2,000,000.
  • Employer Liability:  $1,000,000
  • Business Automobile Liability:  minimum limits for Owned, Scheduled, Non-Owned, or Hired Automobiles with a combined single limit of not less than $1,000,000 per occurrence.
  • Workers' Compensation:  as required under California law.
  • Course of construction insurance:  as specified in the Contract General Conditions maintained by Capital Planning, Design and Construction.
  • Hold Harmless Provision:  as specified in the Contract General Conditions maintained by Capital Planning, Design and Construction.

Exceptions:  deviations from the amounts listed above shall be identified in a supplementary general conditions document prepared by the campus and included in the bid documents.

Evidence of Adequate Coverage - Insurance Requirements

Evidence of adequate insurance coverage is required by furnishing to the University a certificate of insurance that includes an additional insured endorsement and each insurer shall have an A.M. Best (or equivalent) rating of at least A:VII unless otherwise agreed to by the University.

An additional insured endorsement must accompany each certificate (workers' compensation excepted).  Standard insurance form #CG 20 10 10 01 is accepted - Endorsement is to be on a separate page and the wording on the endorsement is to be exactly as follows:

  • The State of California; the Trustees of The California State University; California State University, Chico; and the officers, employees, volunteers and agents of each of them are included as additional insureds.
  • Coverage shall not be cancelled, modified, or reduced without thirty (30) days advance written notice to the University, delivered by certified mail, return receipt requested.

Questions can be directed to Procurement & Contract Services