(A) Insurance needs will vary from contract to contract depending on the size and nature of the contract. Generally speaking, for all contracts other than point of sale transactions, the purchasing agent shall verify that the contractor carries general liability and property damage insurance, by obtaining a copy of the certificate of insurance establishing proof of such insurance before entering into the contract or allowing the contractor to provide the goods or services to the town. Also, where possible, the purchasing agent should confirm that manufactures of materials purchased by the town should carry product liability insurance. Contractors performing public works jobs should, in addition to any bonding requirements and general liability insurance, carry completed operation coverage. Any contractor providing professional services should carry professional liability insurance. The purchasing agent should confer with the Town Attorney regarding the appropriate type of insurance. The purchasing agent should obtain approval of the Town Council before waiving the proof of insurance requirements set forth here.
(B) For large contracts or contracts involving specific hazard, where possible, the purchasing agent should try to negotiate as part of the contract that the contractor add the town as an additional insured on the contractor’s insurance policy, and that the contractor indemnify and hold the town harmless for its conduct. Such language should be included in the face of the written contracts, and approved by the Town Attorney. For ongoing contracts, the contract shall provide that the purchasing agent shall be required to maintain such insurance throughout the contract period.
(C) The appropriate amount of such coverage will vary depending on the nature and size of the contract. If reasonable, the purchasing agent should require the contractor to carry insurance up to $700,000 for injury or death of one person and $5,000,000 aggregate for injury or death to all persons and $1,000,000 for any property damage. The purchasing agents should seek Town Council approval for a modification of this amount or a waiver of the certificate of insurance before a purchasing agent may enter into a contract for any amount exceeding $1,000 in value. The purchasing agent shall require the contractor to provide a certificate of compliance from the state’s Workers Compensation Board showing that the contractor has complied with I.C. 22-3-2-5, I.C. 22-3-5-1, and I.C. 22-3-5-2. All subcontractors on the contract must likewise provide proof of Workers Compensation Insurance coverage for all workers. A contractor may not avoid this requirement by designating its workers as independent contractors unless the independent contractors can provide proof of valid workers compensation insurance.
(I.C. 22-3-2-14(b)) (Ord. 2017-12, passed 12-14-2017)