EXHIBIT B

1.1 The Contractor shall purchase from and maintain in a company or companies lawfully authorized to do business in the jurisdiction in which the Project is located such insurance as will protect the Contractor from claims set forth below which may arise out of or result from the Contractor’s operations and completed operations under the Contract and for which the Contractor may be liable, whether such operations be by the Contractor or by a Subcontractor or by anyone directly or indirectly employed by any of them, or by anyone for whose acts any of them may be liable:

1. Claims under workers’ compensation, that are applicable to the Work to be performed;
2. Claims for damages because of bodily injury, sickness or disease, or death of any person other than the Contractor’s employees;
3. Claims for damages insured by usual personal injury liability coverage;
4. Claims for damages, other than to the Work itself, because of injury to or destruction of tangible property, including loss of use resulting therefrom;
5. Claims for damages because of bodily injury, death of a person or property damage arising out of ownership, maintenance or use of a motor vehicle;
6. Claims for bodily injury or property damage arising out of completed operations; and
7. Claims involving contractual liability insurance applicable to the Contractor’s indemnity obligations under Section 16.J of the Agreement.

All insurance to be provided by the Contractor shall be written by companies acceptable to owner. All insurance carriers must be rated by AM Best A-VII or better unless approved by Owner.

1.2 The insurance required by Section 1.1 shall be written for not less than the following minimum limits of liability:

.1 Workers’ Compensation

1. State Statutory
2. Applicable Federal (e.g. Longshoremen’s) $500,000
3. Employer’s Liability $1,000,000.00 per accident

.2 Commercial General Liability (including Premises-Operations; Independent Contractor’s Protective; Products and Completed Operation Broad Form Property Damage; Personal and Advertising Injury)

Per Occurrence, Per Project, Products-Completed Operations Aggregate $1,000,000.00

General Aggregate $1,000,000.00

Medical Payments, Per Occurrence $5,000

Completed Operations and Products Liability shall be maintained for the full period of statutory limitations after final payment.

.3 Business Automobile Liability (on all owned, non-owned and hired vehicles)

Combined Single Limit Per Accident $1,000,000.00.

.4 Excess Liability (Umbrella form with Drop Down Provision)

Per Occurrence/Aggregate Limit $2,000,000

1.3 Certificates of insurance acceptable to the Owner shall be filed with the Owner prior to commencement of the Work and thereafter upon renewal or replacement of each required policy of insurance. These certificates and the insurance policies required by this Section 1.1 shall contain a provision that coverages afforded under the policies will not be canceled or allowed to expire until at least 30 days’ prior written notice has been given to the Owner. An additional certificate evidencing continuation of liability coverage, including coverage for completed operations, shall be submitted with the final Application for Payment and thereafter upon renewal or replacement of such coverage. Information concerning reduction of coverage shall be furnished by the Contractor within 10 days.

1.4 The Contractor shall cause the commercial liability coverage required by this Exhibit to include (1) the Owner as an additional insured for claims arising during the Contractor’s ongoing operations phase; and (2) the Owner as an additional insured for claims arising during the Contractor’s completed operations phase.

1.5 Contractor’s coverage is not permitted to include any of the following endorsements:

1. Contractual Liability Limitation, CG21 39 or its equivalent
2. Amendment Of Insured Contract Definition, CG 24 26 or its equivalent
3. Exclusion – Explosion, Collapse And Underground Property Damage Hazard, CG 21 42 or CG 21 43 or its equivalent
4. Limitation of Coverage to Designated Premises or Project, CG 21 44 07 98 or its equivalent
5. Exclusion – Damage to Work Performed By Subcontractors On Your Behalf, CG 22 94 or CG 22 95 or its equivalent
6. Any type of Classification or Business Description Limitation endorsement
7. Any type of Construction Defect Complete Operations exclusion endorsement
8. Any type of endorsement modifying the Employer’s Liability exclusion
9. Any type of Habitational or Residential exclusion
10. Any type of Controlled Insurance Program or “Wrap” exclusions unless residual coverage is provided
11. Any type of Punitive, Exemplary or Multiplied Damages exclusion
12. Any type of Subsidence exclusion if the Contractor is engaged in any type of earth movement work, including but not limited to soil compaction, fill or installation of storm or sewer drains.

1.6 Excepting workers’ compensation insurance, Contractor shall add Owner as an additional insured to any and all policies of insurance required by this Agreement. With respect to the Contractor’s commercial general liability insurance policy, Contractor shall add the Owner as an additional insured using an endorsement form at least as broad as ISO CG 20 10 10 01 and ISO CG 20 37 10 01 forms. Excepting workers’ compensation insurance, all policies shall state that they shall be primary and noncontributory to any and all other available policies of insurance and shall be endorsed to waive subrogation, using an endorsement form at least as broad as CG 24 04 [Ed. 11-85]. Owner shall be added as an “alternate employer” on Contractor’s workers’ compensation insurance. Contractor shall furnish to Owner a Certificate of Insurance showing compliance with this obligation.

1.7 Contractor must certify in writing to Owner that Contractor provided workers’ compensation insurance coverage for each employee of the Contractor employed on the Project and Contractor shall provide a certificate from each Subcontractor certifying that the Subcontractor provides Workers’ Compensation Insurance for each employee of the Subcontractor employed on the Project. The Contractor’s certification must be received by Owner prior to Contractor’s performance of any Work on the Property. The certificate from each Subcontractor must be received by Owner prior to each Subcontractor being allowed to work on the Project. In the event any Subcontractors’ insurance coverage on any policy will expire prior to completion of the Project as a whole, Contractor shall provide to Owner new certificates of insurance from the Subcontractor showing replacement coverage has been obtained prior to the expiration of the current policy period.

1.8 Builder’s Risk Insurance

.1 Until the Work is completed and accepted by the Owner, the Contractor shall purchase and maintain builder’s risk insurance upon the entire Work at the Project site to the full insurable value thereof. The property insurance shall also cover portions of the Work stored off site after written approval of the Owner of the value established in the approval, and also portions of the Work in transit. This insurance shall include the interests of the Owner, the Contractor, Subcontractors and Sub-subcontractors in the Work and shall insure against the perils of fire, wind, storm, hail, lightning and extended coverage including flood and earthquake and shall include all risk insurance for physical loss or damage, including, without duplication of coverage, theft, vandalism and malicious mischief. The insurance shall cover reasonable compensation for architectural and engineering services and expenses required as a result of an insured loss. This must be an all risk policy incorporating the following language:

Permission is given for the Project insured hereunder to become occupied, the insurance remaining in full force and effect until such time as the Project has been accepted by the Owner, all as currently approved by the Texas Board of Insurance Commissioners.

.2 The policy shall include coverage for Explosion, Collapse and Underground (ECU). Such insurance shall be evidenced by the kind of policy which does not have to be adjusted or reported upon periodically, but provides constant insurance at full one hundred percent (100%) of all insurable values as they are created during construction by performance of the Contract. When permissible by law, the Certificate of Insurance must include the names of the insured Contractor and the Owner.

.3 Loss under such All Risk Builder’s Risk Insurance shall be made payable jointly to the Owner and to the Contractor by name (and, if separate mechanical contracts are awarded to each, by name, of the plumbing, heating, ventilating and electric contractors).

.4 In the case of loss under the risks covered, and of collection by insured, the Owner shall act as trustee for all parties concerned as their interests may appear.

.5 The original All Risk Builder’s Risk Insurance Policy Certificate shall be delivered to and left in the safekeeping of the Owner, a Certificate or copy being retained by the Contractor (and Certificates or copies being furnished the separate Subcontractors, if any).

.6 Partial occupancy or use by the Owner shall not commence until the insurance company or companies providing property insurance have consented to such partial occupancy or use by endorsement or otherwise. The Owner and the Contractor shall take reasonable steps to obtain consent of the insurance company or companies and shall, without mutual written consent, take no action with respect to partial occupancy or use that would cause cancellation, lapse or reduction of insurance.