Independent Contractor Agreement Page 7
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16business in the state or states in which Subcontractor does business. Contractor acknowledges that
failure to secure or maintain satisfactory insurance coverage shall be deemed a material breach of this
Agreement and shall result in the immediate termination of the Agreement and the loss of
Subcontractor’s right to perform the delivery services covered by this Agreement.
8.1.1
Vehicle Insurance. Subcontractor shall maintain commercial vehicle liability
insurance on each vehicle used by Subcontractor to perform services under this Agreement with
minimum coverage limits of not less than $300,000.00 combined single limit, excluding cargo
insurance. Subcontractor shall provide evidence of such insurance coverage by delivering to
Contractor, before its equipment performs services under this Agreement, current certificates of
vehicle liability insurance. To ensure public safety, Subcontractor further agrees to provide
updated certificates each time Subcontractor purchases, renews or alters its insurance
coverage. Furthermore, Subcontractor must provide Contractor with written notice at least
thirty (30) days prior to cancellation of any insurance policy required by Contractor. For the
purpose of receiving notice in the event Subcontractor’s insurance coverage lapses,
Subcontractor shall list Contractor and/or Contractor’s customer (as specified by Contractor) as
an additional insured on Subcontractor’s vehicle insurance policy. Notwithstanding the
foregoing, Contractor shall have no right to control Subcontractor’s selection or maintenance of
its insurance policies.
8.1.2 Cargo Insurance. Subcontractor shall maintain cargo insurance in an amount of
n o l e s s t h a n $
p e r i n c i d e n t o n e a c h v e h i c l e u s e d b y S u b c o n t r a c t o r t o
perform services under this Agreement. Subcontractor must submit a certificate of current
cargo insurance to Contractor before Subcontractor shall be entitled to perform delivery
services under this Agreement. To ensure compliance with this requirement, Subcontractor
agrees to provide updated proof of cargo insurance each time Subcontractor purchases, renews
or alters its cargo insurance policy.
8.1.3 Worker’s Compensation Insurance .
Subject to the limited exceptions
referenced below, Subcontractor shall maintain workers’ compensation insurance to the extent
required by law covering all individuals performing services under this Agreement. Proof of such
coverage must be submitted to Contractor and/or its customer before any individual may
perform services under this Agreement.
8.1.4 Occupational Accident Insurance : If permitted by law, Subcontractor may
choose to insure him or herself against industrial injuries by maintaining occupational accident
insurance rather than workers’ compensation insurance (as required above). Subcontractor’s
contractors may also, to the extent permitted by law, maintain occupational accident insurance
rather than workers’ compensation insurance. All of Subcontractor’s employees, however, must
be covered by workers’ compensation insurance, as required by law. If Subcontractor intends to
perform services in Utah, and Subcontractor desires to insure him or herself under an
occupational accident insurance policy (rather than a workers’ compensation policy),
Subcontractor must provide to Contractor a copy of its “Statutory Employee Exclusion
Endorsement” form, which enables business owners and officers to be exempted from Utah’s
workers’ compensation insurance requirement. Subcontractor’s contractors performing
services in Utah must also submit a Statutory Employee Exclusion form to be exempted from the
above workers’ compensation insurance requirement.
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