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5.1 CONTRACTOR PROVIDED INSURANCE
<br />The Contractor shall, without limiting its obligations or liabilities, procure, pay for and
<br />maintain such insurance as is required by law and as is required by this Agreement to
<br />protect the Contractor, the CM, the Owner and the Designer from claims far damages for
<br />bodily injury, including death, and from claims for property damage which may arise from
<br />the Contractor's or its representatives', consultants', Subcontractors', agents', or
<br />employees' operations under this Agreement. Such insurance shall be of the kinds and
<br />have limits of liability and coverages not less than the minimum limits hereinafter specified
<br />or required by law, whichever is greater. The CM makes no representation as to the
<br />adequacy or sufficiency of such coverages. The following requirements shall in no way be
<br />construed to limit or eliminate the liability of the Contractor, which arises from performance
<br />of Work under the Agreement. The Contractor is strictly responsible for any losses, claims,
<br />and costs of any kind which exceed the Contractor's limits of liability, or which may be
<br />outside the coverage scope of the policies.
<br />The insurance specified shall be provided by an insurer approved by the CM, authorized to
<br />do such business in the State of North Carolina, and on terms approved by the CM.
<br />Insurance companies utilized shall have a minimum rating of A- and Class VII as evaluated
<br />by the most current A. M. Best Rating Guide. If the insurer has a Best Rating less than A-
<br />and Class VII, the Contractor must receive specific written approval from the CM prior to
<br />proceeding with any Work under the Agreement. All agents and brokers shall hold valid
<br />licenses from the State of North Carolina. The Contractor shall furnish to the CM a
<br />certificate or certificates of insurance in a form satisfactory to the CM contemporaneously
<br />with the executed Construction Agreement. Upon request of the CM, the Contractor shall
<br />provide the CM with certified copies of the insurance policies required by this Article,
<br />including without limitation declaration pages, conditions, exclusions and endorsements,
<br />and confirmation that each policy premium has been paid for the required term of this
<br />Agreement. Certificates of insurance shall be signed by a person authorized by that
<br />insurer to bind coverage on its behalf. All insurance policies shall provide, as evidenced by
<br />Certificates of Insurance, that the insurance shall not be canceled, reduced, restricted, or
<br />changed in any way without at least thirty (30} days prior written notice to the CM and the
<br />Owner. With regard to expiration, cancellation, reduction, restriction, or any other change,
<br />certificates shall state: "Should any of the following described policies be canceled before
<br />expiration date or be due to expire within thirty (30) days, the insurer shall mail thirty
<br />(30} days prior written notice to named certificate holder." In the event of any such
<br />cancellation, non-renewal, reduction, restriction, or change in any insurance, the Contractor
<br />is obligated to replace such insurance within seven (7) days without a gap in coverage and
<br />file accordingly such notice with the CM and the Owner, and other interested parties.
<br />Failing immediate receipt of evidence of such replacement of insurance, the CM reserves
<br />the right to procure such insurance as the CM considers desirable and the Contractor shall
<br />pay or reimburse the cost of the premium in respect thereof. It is expressly provided,
<br />however, that any action or inaction on the part of the CM in this respect shall in no way
<br />change or reduce the Contractor's responsibilities and liabilities under this Agreement.
<br />Self-funded, policy fronting, or other non-risk transfer insurance mechanisms are not
<br />acceptable without prior written approval of the CM. Full disclosure of such a program
<br />must be made prior to commencing mobilization to the Project site. Failure to make a full
<br />disclosure constitutes a material breach of the Agreement, justifying termination for default.
<br />The Contractor shall name the CM, the Owner, the Designer and their respective
<br />consultants as additional insureds under all its insurance contracts (except workers'
<br />compensation) with respect to and including without limitation liability arising out of
<br />activities performed by or on behalf of the Contractor, products and completed operations
<br />of the Contractor, and automobiles owned, hired, leased, or borrowed by the Contractor.
<br />GENERAL CONDITIONS FOR CM AT RISK PROJECT 9 of 43 JUNE 2001 EDITION
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