La. Admin. Code tit. 43 § I-1154

Current through Register Vol. 50, No. 9, September 20, 2024

Section I-1154 - Insurance Requirement

A. The lessee shall purchase and maintain, for the duration of the AESL, insurance against claims for injuries to persons or damages to property which may arise from or in connection with the lessee's operation and use of the leased premises. The cost of such insurance shall be borne by the lessee.

B. The lessee shall obtain at its own cost and expense the following insurance placed with insurance companies authorized to do business in the state with A.M. Best ratings of A-:VI or higher. This rating requirement may be waived for workers compensation coverage only.

1. Workers Compensation. Workers Compensation Insurance shall be in compliance with the Workers Compensation Law of the state of the contractor's headquarters. Employers Liability is included with a minimum limit of $500,000 per accident/per disease/per employee. If work is to be performed over water and involves maritime exposure, applicable LHWCA, Jones Act, or other maritime law coverage shall be included and the Employers Liability limit increased to a minimum of $1,000,000. A.M. Best's insurance company rating requirement may be waived for workers compensation coverage only.

2. Commercial General Liability. Commercial General Liability Insurance, including Personal and Advertising Injury Liability, shall have a minimum limit per occurrence of $1,000,000 and a minimum general aggregate of $2,000,000. The Insurance Services Office (ISO) Commercial General Liability Occurrence Coverage Form CG 00 01 (current form approved for use), or equivalent, is to be used in the policy. A claims-made form is unacceptable.

C. The General Liability Coverage policies shall contain, or be endorsed to contain, the following provisions.

1. The state, and its political subdivisions shall be named as an additional insured as regards negligence by the contractor and/or the lessee. ISO Form CG 20 10 (current form approved for use), or equivalent, is to be used when applicable. The coverage shall contain no special limitations on the scope of protection afforded to the state, OMR, and the board.

2. The lessee's insurance shall be primary as respects the state, and its political subdivisions. Any insurance or self-insurance maintained by the state, OMR, and the board, shall be excess and non-contributory of the lessee's insurance.

3. Any failure of the lessee to comply with reporting provisions of the policy shall not affect coverage provided to the state, and its political subdivisions.

4. The lessee's insurance shall apply separately to each insured against whom claim is made or suit is initiated, except with respect to the policy limits.

D. The Workers Compensation and Employers Liability Coverage Policies shall contain, or be endorsed to contain, the following provisions.

1. The insurer shall agree to waive all rights of subrogation against the state, and its political subdivisions losses arising from or in connection with the lessee's operation and use of the leased premises.

E. The lessee shall provide verification of insurance coverage in the following manner.

1. The lessee shall furnish OMR with certificates of insurance reflecting proof of required coverage. The certificates for each insurance policy are to be signed by a person authorized by that insurer to bind coverage on its behalf. The certificates are to be received and approved by OMR before work commences and upon any AESL renewal thereafter.

2. In addition to the certificates, the contractor and the lessee shall submit the declarations page and the cancellation provision endorsement for each insurance policy. OMR reserves the right to request complete certified copies of all required insurance policies at any time.

3. Upon failure of the lessee to furnish, deliver and maintain insurance as provided above, the AESL, at the election of the board may be suspended, discontinued or terminated. Failure of the lessee to purchase and/or maintain any required insurance shall not relieve the lessee from any liability or indemnification.

F. All certificates of insurance of the lessee shall reflect the following.

1. The lessee's insurer will have no right of recovery or subrogation against the state, and its political subdivisions. It is the intention of the parties that the lessee's insurance policies shall protect both parties and shall be the primary coverage for any and all losses that occur under the AESL.

2. The state, and its political subdivisions shall be named as an additional insured as regards negligence by the contractor, the lessee or the operator of the AESP. ISO Form CG 20 10 (current form approved for use), or equivalent, is to be used when applicable.

3. The insurance companies issuing the policy or policies shall have no recourse against the state and its political subdivisions for payment of any premiums or for assessments under any form of the policy or policies.

G. If at any time an insurer issuing any policy does not meet the minimum A.M. Best rating, the lessee shall obtain a policy with an insurer that meets the A.M. Best rating and shall submit another certificate of insurance as required. Upon failure of the lessee to furnish, deliver and maintain insurance as provided above, the AESL, at the election of the board or OMR, may be suspended, discontinued or terminated. Failure of the lessee to purchase and/or maintain any required insurance shall not relieve the lessee from any liability or indemnification under the AESL.

H. Any deductibles or self-insured retentions must be declared to and accepted by OMR. Any and all deductibles shall be assumed in their entirety by the lessee.

I. All property losses caused by the actions of the lessee shall be adjusted with and made payable to the state of Louisiana.

J. The lessee or the lessee's insurer shall submit updated proof of insurance as required by this Subpart to OMR by January 31of each calendar year. If lessee or lessee's insurer fails to submit proof, OMR may levy liquidated damages in the amount of $100 per day until proof is received.

La. Admin. Code tit. 43, § I-1154

Promulgated by Department of Natural Resources, Office of Mineral Resources, LR 38:139 (January 2012).

AUTHORITY NOTE: Promulgated in accordance with R.S. 30:124.