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This section shall not be interpreted to limit the defmition of breach to the failure to perform the <br />Work related to a Request for Payment. <br />c. The Contractor has included in the Contract Price and shall pay all taxes assessed by any authority <br />on the Work or the labor and materials used therein. It shall be the Contractor's responsibility to <br />furnish the Owner documentary evidence showing the materials used and sales and use tax paid by <br />the Contractor and each of its subcontractors. <br />5. INSURANCE <br />a. Minimum requirements -The Contractor shall obtain, at its sole expense, all insurance required <br />under this Agreement and the Contractor shall not commence work until such insurance is in force <br />nor shall the Contractor allow any Subcontractor to commence work on its subcontract until all <br />insurance required to be procured by Subcontractors hereunder has been so obtained by or for the <br />Subcontractor. All required insurance shall be procured from insurance companies licensed to do <br />business in North Carolina with a Best's Insurance Guide Rating of A- or better. Coverage for the <br />following types of insurance shall be maintained continuously during the life of the Project until <br />Final Completion of the Work. Coverages shall be maintained continuously during the life of the <br />Project until Final Completion bf the Work for the following types of insurance in the amounts <br />listed: <br />i. Worker's Compensation Insurance wi#h limits for Coverage AStatutory -State of North <br />Carolina and Coverage B Employers Liability $500,000 each accident and policy limit and <br />disease each employee. <br />ii. Comprehensive General Liability and Property Damage Insurance ($500,000 Each <br />Occurrence; $1,000,000 Aggregate). <br />iii. Contractual Liability (Bodily Injury and Property Damage $500,000 Each Occurrence; <br />Property Damage $1,000,000 Aggregate). <br />iv. Personal Injury, with Employment Exclusion deleted ($1,000,000 Aggregate). <br />v. Comprehensive Automobile Liability Insurance (Bodily Injury $100,000 Each <br />Person/Each Accident, $300,000 Each Occurrence; Property Damage $100,000 Each <br />Occurrence). <br />b. Additional Insured -The Owner shall be named as additional insured on all forms of insurance <br />except Worker's Compensation. Each certificate of insurance and policy required hereunder, <br />except the worker's compensation policy, shall bear the provision that "The policy cannot be <br />canceled or reduced in amount and that coverage cannot be eliminated in less than thirty (30) days <br />after mailing written notice to the Owner of such alteration, cancellation, or elimination, the written <br />notice to be seirt by Certified Mail. <br />c. Performance Bonds -Contractor shall furnish bonds covering the faithful performance of the <br />Contract and payment of all obligations arising under any of the Contract Documents or related in <br />any way to the Work. Contractor shall immediately furnish a copy of such bonds to any requesting <br />person who appears to be a potential beneficiary of bonds covering payment obligations arising <br />under any of the Contract Documents. This subsection 6{c) applies only to Contracts of fifty <br />thousand dollars ($50,000.00) or more where the total cost for the project is three hundred thousand <br />dollars ($300,000.00) or more. <br />6. INDEMNITY <br />a. The Contractor shall indemnify and hold harmless to the extent permitted by law the Owner and its <br />agents and employees from and against any and all claims, damages, Losses and expenses, <br />Revised October 2011 3 <br />