los angeles unified school district...the lausd ocip iii - insurance manual 04/30/2013 alliant...

The LAUSD OCIP III - Insurance Manual 04/30/2013 Alliant Version 01

LOS ANGELES UNIFIED SCHOOL DISTRICT The School Repair and Construction Program Owner Controlled Insurance Program OCIP III Contractors Insurance Procedures Manual April 30, 2013


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Table of Contents 1.0 INTRODUCTION ........................................................................................................... 4

1.1 Overview ................................................................................................................. 4

2.0 PROJECT DIRECTORY ................................................................................................... 5

3.0 PROJECT DEFINITIONS ................................................................................................. 7

4.0 OCIP Coverages ......................................................................................................... 10

4.1 Excluded Parties .................................................................................................... 10

4.2 Evidence of Coverage ............................................................................................. 10

4.3 Summary Description of OCIP Coverages ................................................................ 10

4.4 Assignment of Return Premiums ............................................................................ 10

4.5 Workers’ Compensation and Employers Liability: ................................................... 11

4.6 Commercial General Liability ................................................................................. 11

4.7 Excess Liability ....................................................................................................... 12

4.8 Builders Risk .......................................................................................................... 12

4.9 Contractor’s Pollution Liability ............................................................................... 12

4.10 Additional Information ....................................................................................... 13

5.0 Contractor and Subcontractor Required Coverage .................................................... 14

5.1 Enrolled Parties ..................................................................................................... 14

5.2 Excluded Parties .................................................................................................... 14

5.3 Certificate Requirements ....................................................................................... 15

5.4 Evidence of OCIP Coverage..................................................................................... 15

5.5 Workers’ Compensation and Employer’s Liability ................................................... 16

5.6 Commercial General Liability Insurance .................................................................. 16

5.7 Automobile Liability ............................................................................................... 16

5.8 Property Insurance ................................................................................................ 17

5.9 Watercraft and Aircraft Liability ............................................................................. 17

5.10 Professional Liability ........................................................................................... 17

5.11 Pollution Liability ............................................................................................... 17

5.12 Other Insurance Requirements for All Subcontractors ......................................... 18


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6.0 Contractor and Subcontractor Responsibilities .......................................................... 19

6.1 Contractor Bids ...................................................................................................... 20

6.2 Adjustments for OCIP Insurance Costs .................................................................... 20

6.3 Enrollment ............................................................................................................. 22

6.4 Medical Provider Network (MPN) Requirements .................................................... 22

6.5 Maintaining Enrollment in the OCIP ....................................................................... 23

6.6 Safety Standards .................................................................................................... 23

6.7 Payroll Reports ...................................................................................................... 23

6.8 Insurance Company Payroll Audit ........................................................................... 24

6.9 Change Order Procedures ...................................................................................... 24

6.10 Demolition / Abatement Work ........................................................................... 24

6.11 Crane Work ........................................................................................................ 25

6.12 Close Out and Audit Procedures ......................................................................... 26

7.0 Claim Reporting Procedures ...................................................................................... 27

7.1 Workers’ Compensation Claims .............................................................................. 27

7.2 General Liability Claims .......................................................................................... 28

7.3 Automobile Liability Claims .................................................................................... 28

7.4 Pollution Liability Claims ........................................................................................ 28

7.5 Builders Risk Claims ............................................................................................... 29

8.0 APPENDIX ................................................................................................................. 30

INTRODUCTION


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SECTION

1 1.0 INTRODUCTION 1.1 Overview Welcome to the Los Angeles Unified School District (LAUSD) School Repair and Construction Program Owner Controlled Insurance Program. LAUSD has arranged for its construction projects to be insured under its Owner Controlled Insurance Program (OCIP). An OCIP is a single insurance program that insures the District, the Board, all Enrolled Contractors and Enrolled Subcontractors, and other designated parties for Work performed at the Project Site(s). Certain Contractors and Subcontractors are excluded from this OCIP. These parties are identified in Section 3 of this Manual. Coverage under the OCIP includes Workers’ Compensation, Employer’s Liability, General Liability, Excess Liability, Builders Risk, and Contractor's Pollution Liability Insurance (“OCIP Coverages”) for operations of Enrolled Parties at the Project Site. The District will pay the insurance premiums for the OCIP coverages described in this Manual. You should notify your insurance broker/insurer(s) of the coverages provided under this OCIP to avoid the duplication of coverage. Each bidder is required to EXCLUDE from its bid price the cost of the OCIP Coverages provided by the District. The Contractor's and Subcontractor's cost of insurance would include the reduction in insurance premiums, related taxes and assessments, markup on the insurance premiums and losses retained through the use of a self-funded program, self-insured retention or deductible program. The total cost of insurance must include expected losses within any retained risk. The Contractor must deduct the cost of insurance for all their Subcontractors from the bid in addition to their own cost of insurance.

DISCLAIMER: The information in this Manual is intended to outline the OCIP. If any conflict exists between this Manual and the OCIP insurance policies the insurance policies will govern.

PROJECT DIRECTORY


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SECTION

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2.0 PROJECT DIRECTORY

OCIP ADMINISTRATOR / BROKER

Alliant Insurance Services Construction Services Group 333 S. Hope St. Suite 3750

Los Angeles, CA 90071

PROGRAM MANAGER PROGRAM ADMINISTRATOR

Martin Cunningham II Office: 866-394-7937 Fax: 866-867-5811

[email protected]

Dennis McGowan Office: 866-394-7937 Fax: 866-867-5811

[email protected]

PROGRAM ADMINISTRATOR

Matt Kohorst Office: 866-394-7937 Fax: 866-867-5811

[email protected]

WC and GL CLAIMS REPORTING DIRECT CLAIM REPORTING TO:

ACE-ESIS Claims Dedicated Line: 888-709-3644

Email: [email protected]

OCIP PORTAL – ALLIANT WRAPX

OCIP Document Submission

Email: [email protected]

Online Enrollment, Payroll Reporting & Document Management

Website: https://alliantwrapx.alliantinsurance.com/contractorportal

*Contact Project Administrator for User Access

mailto:[email protected]�





https://alliantwrapx.alliantinsurance.com/contractorportal�

PROJECT DIRECTORY


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Los Angeles Unified School District Division of Risk Management & Insurance Services

333 South Beaudry Avenue, 28th Floor Los Angeles, CA 90017

Director of Risk Mgmt OCIP Manager

Robert Reider (213) 241-1843 (office) (213) 241-8956 (fax)

[email protected]

Aristeo Aguilera (213) 241-7994 (office) (213) 241-8956 (fax)

[email protected]

OCIP WC Claims Supervisor

Don Hughes (213) 241-2210 (office) (213) 241-8956 (fax)

[email protected]

OCIP Coverages

POLICIES Workers’ Compensation General Liability Excess Liability

Additional Coverages

POLICIES Builders’ Risk Pollution

PROJECT DEFINITIONS


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SECTION

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3.0 PROJECT DEFINITIONS The following definitions apply to this project and to the descriptions of the Project Coverage used in this manual: Approved Off-Site Locations: Storage yards or staging areas used solely in connection with performing work at the Project Site. All locations must be approved by the Sponsor and insurer.

Certificate of Insurance: A Document providing evidence of the existence of coverage for a particular insurance policy or policies. Contract: A written agreement between the Sponsor and the Contractor for specific work and also includes an agreement between a Subcontractor and any tier of Subcontractor. Contractor Claims Obligation: The amount Contractors of every tier are responsible for paying as their contribution for settlement of an insured loss. District: Los Angeles Unified School District (LAUSD) Eligible Parties: Parties performing labor or services at the Project site are eligible to enroll in the OCIP unless they are an Excluded Party. Employer: Any individual, firm, or corporation that provides direct construction labor for work performed at the Project Site. Enrolled Parties: Those eligible Contractors and Subcontractors that have submitted all necessary enrollment information and have been accepted into the OCIP as evidenced by a

PROJECT DEFINITIONS


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LAUSD OCIP Confirmation Letter and LAUSD OCIP Certificate of Insurance provided by Alliant Excluded Parties:

• Hazardous materials remediation, removal and/or transport companies and their consultants;

• Architects, surveyors, engineers, and soil testing engineers, and their consultants;

• Vendors, suppliers, fabricators, material dealers, truckers, haulers, drivers and others who merely transport, pickup, deliver, or carry materials, personnel, parts or equipment or any other items or persons to or from the Project site;

• Contractors and each of their respective Subcontractors who do not perform any actual labor on the Project site, during the term of the Contract;

• Any parties or entities not specifically designated by in its sole discretion, even if otherwise eligible.

• All crane operators and crane operations. OCIP: LAUSD’s Owner Controlled Insurance Program – A coordinated insurance program providing certain coverages, as defined herein, for the District, Eligible and Enrolled Contractors, and Eligible and Enrolled Subcontractors performing Work at the Project Site. OCIP Insurer: The insurance company named on the policy or on the Certificate of Insurance that provides coverage for the OCIP. Program Administrator: Alliant Insurance Services, Inc. Project Site: Project Site shall mean those areas designated in writing by Sponsor for performance of the Work and such additional areas as may be designated in writing by Sponsor for Contractors use in performance of the Work. Subject to notification and other requirements for off-site locations, the term Site shall also include (a) field office sites, (b) property used for bonded storage of material for the Project approved by Sponsor, (c) staging areas dedicated to the Project, and (d) areas where activities incidental to the Project are being performed by Contractors covered by the workers’ compensation policy included in the OCIP, but excluding any permanent locations of Contractors.

PROJECT DEFINITIONS


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Safety Standards: Establish minimum standards for contractor safety programs. Safety Standards are provided to all participants during the bidding process. Work: Operations as fully described in the Contract, performed at, or emanating directly from the Project Site. Also, the entire completed construction or the various separately identifiable parts required to be furnished under the Contract documents.

OCIP INSURANCE COVERAGE


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SECTION

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4.0 OCIP Coverages This chapter provides a brief description of OCIP Coverages. The actual policies dictate coverage.

4.1 Excluded Parties Excluded Parties must meet the insurance requirements established in Section 5 and provide evidence of coverage to the District.

4.2 Evidence of Coverage The OCIP Administrator will provide a Certificate of Insurance evidencing Workers’ Compensation, General Liability, Excess Liability, Builders Risk, and Contractor’s Pollution Liability insurance to each Enrolled Contractor and Enrolled Subcontractor. Each Party enrolled for Workers’ Compensation coverage will be issued their own Workers’ Compensation policy listing them as the Named Insured. Enrolled Contractors and Enrolled Subcontractors will be an Additional Insured on the other OCIP policies as those policies provide. 4.3 Summary Description of OCIP Coverages The following descriptions on these pages provide a summary of OCIP insurance coverages ONLY. Contractors and Subcontractors may review the policies for actual terms, conditions, exclusions and limitations. 4.4 Assignment of Return Premiums The Sponsor will pay the cost of the OCIP insurance coverage. The Sponsor will be the sole recipient of any return OCIP premiums or dividends. All Participating Contractors shall assign to Sponsor all adjustments, refunds, premium discounts, dividends, credits, or any other monies due from the OCIP insurers.



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4.5 Workers’ Compensation and Employers Liability: State: California

Workers’ Compensation and Employer’s Liability Part One: Workers’ Compensation Statutory Limit

Part Two: Employer’s Liability Annual Limits Per Insured Bodily Injury by Accident, each accident $1,000,000 Bodily Injury by Disease, each employee $1,000,000 Bodily Injury by Disease, policy limit $1,000,000

Each Enrolled Contractor will be issued a separate workers’ compensation policy

Each Enrolled Party will be issued an individual Workers’ Compensation policy 4.6 Commercial General Liability Coverage Form: Occurrence General Liability

Limits of Liability Shared by All Insureds for All Projects

General Aggregate (Reinstates Annually) $ 4,000,000 Products/ Completed Operations Aggregate $ 4,000,000 Personal/ Advertising Injury $ 2,000,000 Bodily Injury & Property Damage – Each Occurrence Limit $ 2,000,000 Fire Damage Legal Liability $1,000,000 Medical Expense $5,000

• This insurance will NOT provide coverage for products liability to any insured party, vendor, supplier, off-site fabricator, material dealer or other party for any product manufactured, assembled or otherwise worked upon away from the Project Site.

• The General Aggregate reinstates on an annual basis. • Ten (10) Years Products & Completed Operations Extension beyond final

acceptance of the entire project with a single, non-reinstated aggregate limit.



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The policy contains exclusions. Some of these exclusions are: Off-site exposures, Real & Personal Property in the care, custody or control of the insured; Asbestos; Lead; Discrimination & Wrongful Termination; ERISA; Architects & Engineers Errors & Omissions; Owned & Non-Owned Aircraft, Watercraft, Pollution and Automobile Liability; Nuclear Broad Form Liability, Terrorism. 4.7 Excess Liability Excess Liability


General Aggregate (Reinstates Annually) $ 100,000,000 Each Occurrence Limit $ 100,000,000

• Policy follows form of underlying Commercial General Liability and Employer’s Liability policy wording (provisions, coverage, exclusions, etc.).

4.8 Builders Risk Projects under $50 Million Builders Risk

Limits of Liability

Each Occurrence Limit $ 50,000,000 Contractor or Subcontractor Deductible $ 10,000

• All projects in excess of $50 million in construction value must be submitted for individual underwriting prior to binding coverage.

4.9 Contractor’s Pollution Liability

Shared by All Enrolled Parties Each Occurrence Limit $50,000,000 Annual General Aggregate Limit $50,000,000



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4.10 Additional Information

• Insurance coverage and limits provided under the OCIP are limited in scope and are specific to Work performed after the inception date of your enrollment into this OCIP. Your insurance representative should review this information. Any additional coverage you may wish to purchase will be at your option and expense.

• Contractors and Subcontractors are advised to arrange their own insurance for

Contractor or Subcontractor owned, used, leased or rented equipment and materials. The OCIP will not cover Contractor or Subcontractor property.

SUBCONTRACTOR REQUIRED COVERAGE


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SECTION

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5.0 Contractor and Subcontractor Required Coverage

Contractors and all Subcontractors are required to maintain coverage to protect against losses that occur away from the Project Site or that are otherwise not covered under the OCIP. Contractors and Subcontractors are required to maintain insurance coverage for the duration of the Contract(s) that protects the District from liabilities. These liabilities may arise from the Contractor’s and Subcontractor’s operations performed away from the Project site, from coverages not provided by the OCIP, or from operations performed by Excluded Parties. The OCIP places Contractors and Subcontractors into one of two main categories: Enrolled Parties and Excluded Parties.

5.1 Enrolled Parties Enrolled Parties must provide evidence of Workers’ Compensation, General Liability, and Excess/Umbrella Liability insurance for off-site activities and Automobile Liability insurance for both on-site and off-site activities as specified in the Contract. See Section 3 for the definition of Enrolled Parties. Prime Contractors must provide their Certificate of Insurance to Alliant upon enrollment in the OCIP. Subcontractors must provide their Certificates of Insurance to their Prime Contractor.

5.2 Excluded Parties Excluded Parties must provide evidence of Workers’ Compensation, General Liability, Excess/Umbrella Liability, Automobile Liability and Pollution Liability insurance for all activities including both on-site and offsite activities as per the insurance specifications in the Contract. See Section 3 for the definition of Excluded Parties. Prime Contractors and Subcontractors must provide their Certificates of Insurance to Alliant. The certificates can be uploaded into WrapX or emailed in to: [email protected].




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5.3 Certificate Requirements All Prime Contractors must submit verification of insurance in the form of a Certificate of Insurance on a standard ACORD form 25-S. They must provide verification of insurance to the OCIP Administrator (Alliant) within ten (10) working days of Notice of Intent to Award of contract, and at least thirty (30) days prior to any renewal, change or replacement of coverage. A sample of an acceptable Certificate of Insurance is provided in Section 8. Excluded Prime Contractors and all excluded Subcontractors must submit Certificates of Insurance for off-site/excluded work for General Liability and Workers’ Compensation and on-site/off-site/excluded work for Automobile Liability. LAUSD must be added as an Additional Insured to the General Liability and Automobile Liability and a Waiver of Subrogation in favor of LAUSD must apply to all lines of coverage, including Workers' Compensation. Certificates must be sent to:

Los Angeles Unified School District Division of Risk Management & Insurance Services 333 S. Beaudry Ave. 28th Floor Los Angeles, CA. 90017-5141 Attention: Larry Chatman

Please note the requirement for thirty (30) days notice of cancellation, modification or material change. The Additional Insured endorsement shall state that the coverage provided to the Additional Insureds is Primary and Non- Contributory with respect to any other insurance available to the Additional Insureds. All Contractors and Subcontractors are responsible for monitoring their Enrolled Subcontractors Certificates of Insurance whether they are enrolled or not. The District reserves the right to disapprove the use of Subcontractors unable to meet the insurance requirements. Certificates of Insurance evidencing compliance must be made available to the District or the OCIP Administrator upon request.

5.4 Evidence of OCIP Coverage Each Participating Contractor will be issued an individual Workers’ Compensation policy including Employer’s Liability coverage. The OCIP Administrator will also provide a Certificate of Insurance evidencing General Liability, and Excess Liability insurance to each Participating Contractor, each of whom will be a named insured on the policy. Other documentation including forms, posting notices, if any, will be furnished to each Participating Contractor. A complete copy of the policy will be furnished to an authorized representative of each Participating Contractor upon written request.



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5.5 Workers’ Compensation and Employer’s Liability

Workers’ Compensation and Employer’s Liability Part One: Workers’ Compensation Statutory Limit

Part Two: Employer’s Liability Annual Limits Per Insured Bodily Injury by Accident, each accident $1,000,000 Bodily Injury by Disease, each employee $1,000,000 Bodily Injury by Disease, policy limit $1,000,000

Enrolled Contractors shall provide evidence of Workers’ Compensation insurance for off-site activities. Excluded Contractors shall provide evidence of Workers’ Compensation applicable to on and off-site projects.

5.6 Commercial General Liability Insurance General Liability


Each Occurrence Limit $ 1,000,000 Personal/ Advertising Injury $ 1,000,000 General Aggregate (Reinstates Annually) $ 2,000,000 Products/ Completed Operations Aggregate $ 2,000,000

Enrolled Contractors shall provide evidence of General Liability insurance for off-site activities. Excluded Contractors shall provide evidence of General Liability insurance applicable to on and off-site projects.

Coverage must be an Occurrence form and it must apply to bodily injury and property damage for operations (including explosion, collapse and underground coverage), independent contractors, products and completed operations. Limits can be provided by a combination of a primary Commercial General Liability policy and an Excess or Umbrella Liability policy. Additional Insured Endorsements required. (section 5.12)

5.7 Automobile Liability A Commercial Business Auto Policy which covers all owned, hired and non-owned automobiles, trucks and trailers with coverage limits not less than $1,000,000 Combined Single Limit each accident for bodily injury and property damage. Coverage will apply both on and away from the Project Site(s). All contractors shall be required to maintain limits of not less than $1,000,000 Combined Single Limit. All Subcontractors shall provide evidence of automobile liability. The CCIP does not cover automobile liability.



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5.8 Property Insurance Contractors and Subcontractors are advised to arrange their own insurance for owned, used, leased or rented equipment, whether such equipment is located at a Project Site or “in transit”. Contractors and Subcontractors are solely responsible for any loss or damage to their personal property and property not intended for incorporation into the structure including contractor tools and equipment, scaffolding and temporary structures, whether owned, used, leased or rented by the contractor. Contractors and Subcontractors are also responsible for any loss or damage to any off-site property and/or materials created or provided under the Contract. The OCIP does not cover subcontractor’s property.

5.9 Watercraft and Aircraft Liability The operator of any watercraft or aircraft of any kind must maintain liability insurance with limits of at least $5,000,000 that names the District and the respective Contractor and/or Subcontractor as an Additional Insured with Primary and Non-Contributory wording. In addition, the limit of liability must be satisfactory to the District. Such insurance requirements will be determined as the need arises. The OCIP does not provide Watercraft or Aviation insurance.

5.10 Professional Liability All professional service firms must provide professional liability insurance appropriate for their profession and satisfactory to the District. The OCIP does not provide Professional Liability insurance. 5.11 Pollution Liability Work related to the removal, remediation or abatement of hazardous materials, i.e., asbestos, lead, PCBs, heavy metals, specified demolition, etc. is specifically excluded from OCIP coverage. Contractors/subcontractors performing this type of work must provide and maintain a Pollution Liability Policy covering the exposures mentioned above. The District will determine limits based on the nature of the contract and the risk involved.



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5.12 Other Insurance Requirements for All Subcontractors Waivers of Subrogation Required: The Contractor's Workers’ Compensation, General Liability, Automobile Liability and Umbrella or Excess Liability insurers shall provide Waivers of Subrogation in favor of the District, the Board, its officials, employees and agents and the OCIP Administrator. Additional Insured Endorsements Required: The Contractor's General Liability and Excess Liability Insurance policies will name the Los Angeles Unified School District, the Board, its officials, employees and agents, and the OCIP Administrator as Additional Insureds and it will state that the coverage is Primary and Non-Contributory.

SUBCONTRACTOR RESPONSIBILITIES


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SECTION

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6.0 Contractor and Subcontractor Responsibilities Throughout the course of the Project(s), Contractors and Subcontractors will be responsible for reporting and maintaining certain records as outlined in this section. Contractors and Subcontractors are required to cooperate with the District and its OCIP Administrator in all aspects of OCIP implementation and administration. Responsibilities of the Contractor include all contract responsibilities, including but not limited to the following:

• Safety Pre-Qualification prior to submitting a bid. Contractors may only contract with Subcontractors that they have safety pre-qualified

• EXCLUDE the cost of OCIP insurance from their bids, if eligible for the OCIP

• Provide each Subcontractor with a copy of this Insurance Manual & Safety Standards

• Enrollment in the OCIP, if eligible, within ten (10) working days of Notice of Intent to Award of Contract

• Include OCIP provisions in all contracts with Subcontractors • Provide timely evidence of other insurance or contractor required insurance to

the OCIP Administrator within ten (10) working days of notice of intent to award of contract

• Notify the OCIP Administrator of all subcontracts awarded • Maintain and report monthly payroll records • Cooperate with the OCIP Administrator’s and/or the OCIP Manager’s requests

for information • Comply with insurance, claim and safety procedures • Monitor and maintain its Subcontractors’ Certificates of Insurance on-site • Notify the OCIP Administrator immediately of any insurance cancellation,

modification, material change or non-renewal of Contractor required insurance • Ensure that their own eligible and enrolled subcontractors EXCLUDE the

cost of OCIP insurance from their bids.



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Responsibilities of Subcontractors of all tiers:

• Safety pre-qualification • Enrollment in the OCIP, if eligible, within ten (10) working days of the Notice of

Intent to Award and prior to mobilization on-site • Maintain and report monthly payroll records • Cooperate with the OCIP Administrator's and/or OCIP Manager’s requests for

information • Comply with insurance, claim and safety procedures • Monitor and maintain its Subcontractor's Certificates of Insurance on-site

6.1 Contractor Bids The District provides insurance for all Enrolled Contractors and Enrolled Subcontractors under the OCIP for Work performed at the Project Site(s). The section below, “Adjustments for OCIP Insurance Costs” describes the procedure for bidding and how you must identify and EXCLUDE your insurance costs from the bid. Section 8 of this Manual contains worksheets that can help you estimate your insurance costs for this Project. The OCIP Administrator can also assist you in identifying the insurance costs. See Section 8 for sample forms that can help identify your insurance costs. See Section 2 for information on contacting the OCIP Administrator. 6.2 Adjustments for OCIP Insurance Costs Each Contractor and Subcontractor is required to EXCLUDE the Costs of OCIP Coverages from its bid price for the proposed scope of work (including subcontracted work whether or not the Subcontractor is identified at the time of the bid). Change orders must also be priced by the Enrolled Parties to EXCLUDE the cost of insurance. “Costs of OCIP Coverages” is defined as the amount of Contractor’s and its Subcontractors’ reduction in insurance costs due to eligibility for OCIP Coverages as determined by the Owner using the Alliant Insurance Cost Worksheet located in the Insurance Manual (Section 8) and information available to the District and/or the OCIP Administrator regarding the costs of similar coverages taking into account limits of liability, coverages, and rating of the insurer. In the event of failure of any tier to furnish and maintain said insurance and to furnish satisfactory evidence



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thereof, the Sponsor shall have the right to take out and maintain same coverage for all parties on behalf of the Contractor of any tier who also agrees to furnish all necessary information thereof and to pay the cost thereof to the Sponsor immediately upon presentation of a premium invoice. The Contractor's and Subcontractor's cost of insurance would include the reduction in insurance premiums, related taxes and assessments, markup on the insurance premiums and losses retained through the use of a self-funded program, self-insured retention or deductible program. The total cost of insurance must include expected losses within any retained risk. The Contractor must DEDUCT the cost of insurance for all their Subcontractors from the bid in addition to their own cost of insurance. To aid the Contractor and its Subcontractors in identifying its Workers’ Compensation, Employer’s Liability insurance, General Liability insurance, Excess Liability insurance, Builders’ Risk insurance and Contractor’s Pollution Liability insurance costs, the Insurance Cost Worksheet is included in Section 8. Contractors and Subcontractors should use this worksheet to determine the costs of insurance to be DEDUCTED from their bid. A separate form can be used for the Contractor’s self-performed work, each identified Subcontractor, and for unidentified Subcontractors at the time of the bid. The worksheets are for assistance only. Contractors should maintain these on file but do not include these worksheets with the bid submission or OCIP enrollment documents. However, each Enrolled Contractor and Enrolled Subcontractor may be required to submit insurance documentation that supports the Cost of OCIP Coverage deducted from the bid. Documentation must include the following pages from the Workers’ Compensation, Employer’s Liability, General Liability, Excess Liability, Builders Risk and Contractor’s Pollution Liability policies as applicable:

• Declarations or information page • Rate page(s) • Deductible endorsements • Verification of experience modification (Workers’ Compensation only) • Years of loss history for entities that retain losses

Under the District’s OCIP, final payroll is determined by an audit by the OCIP insurer. The audited payroll information will be used to calculate the Contractor’s and Subcontractor’s true insurance costs (in the absence of the OCIP). If the results of this comparison demonstrate that the final, actual payrolls would have produced a DIFFERENT DEDUCTION for insurance costs, AN ADDITIONAL AMOUNT WILL BE WITHHELD from the Contractor’s payments under the Contract. Contractors are solely responsible for ensuring that their Subcontractors of all tiers also DEDUCT the cost of insurance from their bid.



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EACH CONTRACT MUST BE ENROLLED INTO THE OCIP: Enrollment into the OCIP is not automatic. Every contract must be enrolled separately. All Eligible Contractors and all Eligible Subcontractors must complete the online enrollment and participate in the enrollment process for OCIP coverage to apply. Access to the Project Site will not be permitted until Enrollment into the OCIP is complete.

6.3 Enrollment Each Enrolled Contractor shall provide details about themselves and their Subcontractors to the OCIP Administrator in order to enroll them in the OCIP. The Contractor and Subcontractor must each complete Online Enrollment Application in Alliant WrapX. Instructions for online access and enrollment are included in Section 8 of this manual. A separate enrollment must be completed for each and every contract, even if they already have another contract enrolled on the same project. This Enrollment must be completed and submitted to the OCIP Administrator within ten (10) working days of Notice of Intent to Award Contract to obtain coverage under the OCIP. Failure to do so will result in the Contractor being barred from entering the Project Site(s). Each Enrolled Contractor and Enrolled Subcontractor will receive an OCIP Confirmation Letter. An OCIP Confirmation Letter is a letter issued by the OCIP Administrator (Alliant) that confirms acceptance of the applicant into the LAUSD OCIP and includes a Certificate of Insurance evidencing coverage. In addition, a separate Workers’ Compensation policy (if applicable) will be issued to each Enrolled Contractor and Enrolled Subcontractor enrolling in the OCIP for the first time. Contractors with an existing Workers’ Compensation policy under the LAUSD OCIP will receive an endorsement adding the new contract to the existing policy following submission of the Online Enrollment Application the OCIP Administrator (Alliant).

6.4 Medical Provider Network (MPN) Requirements Attached to this manual is the Medical Provider Network (MPN) notice and the MPN Form-B. The MPN is a network of authorized medical providers and facilities arranged by the OCIP’s Workers’ Compensation Insurance Carrier (ACE) to treat all minor and non-life threatening injuries.



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The LAUSD OCIP requires Enrolled Contractors and Subcontractors of every tier MUST give the MPN Form-B to each employee and obtain their signature on the Form-B prior to the employee starting work. The Form-B’s should be maintained on-site. In the event of a worker injury, notify the OCIP Insurance Carrier that you have a signed MPN Form-B on file for that injured worker and send them a copy as per their directions. The MPN notice and MPN Form-B is Exhibit 5 to this Insurance Manual. 6.5 Maintaining Enrollment in the OCIP If you do not comply with all the terms of this Manual in a timely manner, including the Construction Safety Standards, you may not remain enrolled in the OCIP. Contractors eligible for enrollment in the OCIP who are not enrolled in the OCIP will not be granted access to the Project Site(s). 6.6 Safety Standards Each Contractor and Subcontractor is required to have a written safety program and to provide a designated safety representative who is on Site when any Work is in progress. If there are fifty (50) workers or more on a job-site, the Contractor must have a DEDICATED, FULL-TIME, Safety Representative that has no other tasks other than administering the Contractor’s and LAUSD’s Safety Programs. Safety Representative Requirements are as specified in the contract and LAUSD Safety Program. Minimum standards for Contractor safety programs are outlined in the LAUSD’s Safety Standards. 6.7 Payroll Reports Each Enrolled Contractor and Enrolled Subcontractor of every tier must submit monthly payroll reports. The reports will identify worker-hours and payroll by Workers’ Compensation classification code for all Work performed at the Project Site. This information will be used to provide the District's insurers with information required for determining the District's premium. All Enrolled Contractors and Enrolled Subcontractors must submit payroll reports prior to the 10th of the following month. Payroll must be reported online. Instructions for online access are provided in Section 8. The monthly worker-hour and payroll reports should include all on-site workers. Supervisory and clerical personnel payroll should also be included provided that it occurred on-site and covered only Work performed at or emanating directly from each Project Site.



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The payroll report (Alliant Payroll Form) for the prime contractor and all subcontractors must be submitted with the contractors request for payment. The District will not process payment requests unless the Alliant Payroll Form is attached. 6.8 Insurance Company Payroll Audit Each Enrolled Contractor and Enrolled Subcontractor is required to maintain payroll records for each Contract. Such records will allocate the payroll by Workers’ Compensation classification(s) code and exclude the excess or premium paid for overtime (i.e., only the straight time rate will apply to overtime hours worked). Furthermore, such records will limit the payroll for Executive Officers and Partners/Sole Proprietors to the limitations as stated in the State of California manual rules. It is important that you properly classify payrolls, as these are reported to the rating bureau for promulgation of future Experience Modifiers for your firm. All Enrolled Contractors and Enrolled Subcontractors shall make available their payroll records, vouchers, contracts, documents, and records, of any and all kinds, to the auditors of the OCIP insurer(s) or the District’s representatives. Availability of records must be for the policy period, any extension, or during a final audit period as required by the insurance policies. Failure to submit the payroll reports as required may result in the withholding of contract progress payments or final payment until the reports are received and may also result in being barred from future opportunities with the District. 6.9 Change Order Procedures As mentioned above, change orders must also EXCLUDE the Enrolled Contractor's Costs of OCIP Coverage for the insurance coverages that are provided by the District in the OCIP. 6.10 Demolition / Abatement Work Regardless of contract amount, Contractors must notify the OCIP Administrator (Alliant) of any demolition on any structures of four (4) stories or greater in height at least 4 (four) weeks in advance of the actual work beginning. This is so the OCIP Administrator



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can notify ACE. Such notification will give ACE Loss Prevention the option to participate in the review, pre-planning and monitoring process for the demolition work. For demolition projects totaling $1,000,000 or less, or projects with hazardous materials abatement of 10% or less of the total project costs, OCIP coverage will extend to all portions of work except for hazardous materials abatement. Contractors/ subcontractors performing this type of work must provide and maintain a Pollution Liability Policy covering hazardous materials abatement. The contractor/subcontractor shall complete and submit to the Director of Risk Finance and Insurance Services (Robert Reider) or to the OCIP Manager (Aristeo Aguilera) the 00620 Certificate of Insurance for Hazardous Materials form as verification of insurance coverage for hazardous materials work. Demolition projects with no hazardous materials abatement or disturbances that may be performed by properly trained personnel according to Specification Sections 13280 and 13282 are fully covered by the OCIP. For demolition projects totaling above $1,000,000, or any project with hazardous materials abatement of more than 10% of total project costs, the contractor will be considered an “Excluded Party” for OCIP coverage. No portion of the project will be eligible for insurance coverage through the OCIP. Contractors will be required to name LAUSD as an Additional Insured and provide a Certificate of Insurance of Workers’ Compensation, General Liability, Excess/Umbrella Liability, Automobile Liability, and Pollution Liability insurance for all activities including both on-site and off-site activities as per the insurance specifications in the Contract. The Owner Authorized Representative (OAR) assigned to the project shall ensure that the appropriate insurance is maintained by the contractor for the duration of the project FOR DEMOLITION ABATEMENT 6.11 Crane Work As respects any operations requiring CRANES, contractors should notify the LAUSD OCIP Manager, Aristeo Aguilera, so that an appropriate plan can be developed in advance of the work beginning. Such notification shall give the Safety Director time to participate in the review, preplanning and monitoring phases of crane operations. Crane operations are excluded from the OCIP program; therefore the Owner Authorized Representative (OAR) assigned to the project shall ensure that the appropriate insurance is maintained by the contractor for the duration of the project. FOR CRANE OPERATIONS, the Los Angeles Unified School District, the Board, its officials, employees and agents, and the OCIP Administrator must be added



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as Additional Insureds as respects general liability and automobile liability. The coverage is Primary and Non-Contributory. Certificates must be sent to:

Los Angeles Unified School District Division of Risk Management & Insurance Services 333 S. Beaudry Ave. 28th Floor Los Angeles, CA. 90017-5141 Attention: Aristeo Aguilera (213) 241-7994

6.12 Close Out and Audit Procedures Enrolled Contractors and Enrolled Subcontractors must submit the Notice of Work Completion form, when a Contractor and/or a lower tier Subcontractor has completed it’s Work at the LAUSD School Repair and Construction Program Project Site(s) and no longer has workers on the Project Site(s) covered by the contract. The Notice of Work Completion form will initiate the final payroll report and audit of payroll and worker-hours by the OCIP Insurer. A copy of the form is found in Section 8. Coverage ceases upon completion of work at the Project Site as documented by a Certificate of Substantial Completion from the Owner. However, a grace period of sixty (60) days of additional coverage will be extended should a Contractor be required to return to perform work on site directly and solely related to the completion of the Enrolled Contract. In no event will coverage exist beyond sixty (60) days after substantial completion nor for any work not directly and solely related to the Enrolled Contract.

OCIP coverage will cease 60 days after the date of Substantial Completion is reached on the project.

CLAIMS REPORTING PROCEDURES


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SECTION

7

7.0 Claim Reporting Procedures

This section describes the basic procedures for reporting LAUSD OCIP claims: Workers’ Compensation, General Liability, Pollution Liability, and Damage to the Project (Builders Risk). 7.1 Workers’ Compensation Claims The main responsibility for any Contractor and Subcontractor is first to see that the injured worker receives immediate medical care. Immediately contact 911 for any serious, traumatic, and life-threatening injuries. For all minor or non life-threatening injuries, the injured worker must seek treatment within the Medical Provider Network (“MPN”). Once medical care has been arranged, the next step is to notify the OCIP Insurance Carrier (ACE) of the injury. To assist you in reporting an injury we have established a dedicated toll-free telephone number.

Immediately report any injury to ACE-ESIS at: 888-709-3644 When calling in you will need to know:

1) Project/school name, 2) Project/school address, 3) Employer name, 4) Prime contractor’s contract number with LAUSD 5) Employer’s WC policy number.

You may report your WC First Report of Injury 24 hours a day, 365 days per year. When you report the Workers’ Compensation injury using the special reporting telephone number, the OCIP Insurance Carrier (ACE) will make the necessary filing with the State of California (form 5020). It is the employer's responsibility to provide the injured worker with the Employee's Claim Form (DWC-1) within 24 hours of employer’s knowledge of injury. The employer must also send a copy of the completed Employee's Claim Form (DWC-1) and the Supervisor's Accident Investigation Report to the OCIP Insurance Carrier, ACE. The OCIP Administrator provides Claims Kits to all Enrolled Contractors and Enrolled Subcontractors at time of enrollment. These kits include required claim forms and

CLAIMS PROCEDURES


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postings. Additional kits or claims forms can be obtained from the OCIP Administrator (Alliant) upon request.

7.2 General Liability Claims Accidents at or around the Project Site(s) resulting in damage to property of others (other than your own work product) or personal injury or death must be reported immediately. Report all GL Claims to ACE-ESIS at: 888-709-3644 Cooperate with the District and the OCIP insurer representatives in the accident investigation. Do not voluntarily admit liability.

7.3 Automobile Liability Claims No insurance coverage is provided for automobile accidents under the OCIP. It is the sole responsibility of each Contractor and Subcontractor to report accidents/claims involving their automobiles to their own insurance carriers. However, all accidents occurring in or around the job site must be reported to the OCIP Administrator. The accident will be investigated to determine any liability arising out of the project construction activities that could result in a future claim against the LAUSD OCIP. Each Contractor and Subcontractor shall fully cooperate in the investigation of all automobile accidents. Report all Auto claims to your insurance carrier and the OCIP Administrator.

7.4 Pollution Liability Claims The District's OCIP policies may provide coverage for certain pollution conditions. Any known or suspected pollution conditions or incidents must be reported promptly by telephone to the Director of Risk Finance and Insurance Services (Robert Reider) at 213-241-1843 or OCIP Manager (Aristeo Aguilera) at 213-241-7994.

CLAIMS PROCEDURES


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7.5 Builders Risk Claims All risk of direct physical loss or damage excluding earthquake and flood is subject to policy terms, conditions and exclusions. Alliant is the broker for the Builders Risk program. All Builders Risk claims must be reported promptly by telephone to the Director of Risk Finance and Insurance Services (Robert Reider) at 213-241-1843 or OCIP Manager (Aristeo Aguilera) at 213-241-7994.

APPENDIX

SECTION

8

8.0 APPENDIX

• Enrollment – ONLINE SUBMISSION REQUIRED

o Alliant WrapX Online Enrollment Instructions

• Insurance Cost Worksheet – NO SUBMISSION REQUIRED

o Provided to assist in removing insurance costs from Bid.

• Monthly On-Site Payroll Report – ONLINE SUBMISSION REQUIRED

• Notice of Work Termination – ONLINE SUBMISSION REQUIRED

• Notice of Contract Award

o Provided for use in notification of new subcontractors.

• Exhibit 1: Sample Off-Site Certificate of Insurance

APPENDIX

Alliant WrapX Enrollment Process

• Enrollment into the program will be completed online. • You will receive access to the online system: Alliant WrapX, within two days after Alliant has

been notified of your awarded contract. • Please contact Dennis McGowan if you have not been given a login ID and Password

o [email protected] o 866-394-7937

• Link to the Contractor Portal: https://alliantwrapx.alliantinsurance.com/ContractorPortal • After logging into the system, find your newly awarded contract under the Awarded Contracts

window.

• Click on Complete Enrollment to begin the process • The enrollment wizard will start on the Review page. Any section that is not compliant will be

listed in Red. Click Edit to begin updating that section, and continue through the enrollment wizard by clicking Next

• Please see the required information listed below so you can have all the information ready

when you are attempting to enroll.


https://alliantwrapx.alliantinsurance.com/ContractorPortal�

APPENDIX

Required Information for Online Enrollment

Required Information Help 1

Contractor name May include type of company: Corporation, LLC, etc…

2 Parent contractor name Name of company you are contracted with 3 Contractor Federal ID Number Check Alliant data and update 4 Start Date at project site Day physical work starts at jobsite 5 Estimated completion date Can be an estimate 6 Contract Value 7 Contract Description Scope of work 8 Contractor Address Physical address of office. Any P.O. Box should

be entered under Mailing address 9 Contractor Main Phone and Fax numbers 10 Contractor Primary Contact Name 11 Contact position 12 Contact phone and fax numbers, and

email address Email is preferred method for communication

13 Contractor Payroll Contact Name Can be the same as the Primary Contact 14 Payroll Contact phone and fax numbers,

and email address Email is preferred method for communication

15 Workers’ Compensation Class Codes to be used on job

Can be found in your company WC rate pages

16 Estimated Man hours and Payroll Required for enrollment 17 Risk ID # Also called Rating Board file # 18 Rating Bureau NCCI or WCRIB or similar name 19 Experience Modifier (EMR) Can be found in your company WC rate pages 20 WC Offsite Carrier Corporate WC carrier name 21 WC Offsite Policy # Corporate WC policy number 22 WC effective date Corporate WC effective date 23 Policy Expiration Date Corporate WC expiration date 24 If any work is being subcontracted out,

please include information about subcontractors so enrollment can be started for each contractor

At a minimum: Contractor name; estimated start date; contact name, email and phone number; and contract value for subcontracted work.

FORM – B

INSURANCE COST WORKSHEET

Section I Contract/Bid Information Company Name: Alliant Assigned Contract #

Gross Contract Value(including insurance Net Contract Value(excluding insurance cost): Cost): Estimated On Site Payroll: (Auto-fill from Section II) $

Estimated Work Hours: (Auto-fill from Section II)

Section II Calculate your insurance premium.

WC Trade Classification

WC Class Code

Work Hours

Estimated Payrolls

Current WC Rate

Premium = Est. Payrolls x WC Rate

$ $ $ $ $ $ $ $ $ $

Attach separate worksheet if more codes apply.

General Liability Do you have a Large Deductible Program? □Yes Current Rate Factor 100/1000 Payroll OR Receipts Premium $ $ Deductible Amount: $

Excess Liability Is your Excess coverage Non-auditable (Flat)? □Yes Current Rate Factor 100/1000 Payroll OR Receipts Premium $ $

Your O & P % (Overhead and Profit Percentage) % $ TOTAL INSURANCE COST $

Insurance Rate (Cost/Payroll) $

I hereby warrant that this worksheet reflects the projected insurance cost that would apply in the event that my regular insurance program was in force at this location. I also recognize that the [CLIENT NAME] or their Representative - Wrap-Up Administrator Alliant, may request copies of my actual policies to confirm these costs.

*Attach your applicable WC, GL and XS rate pages for rate verification.

Signature: ___________________________ Date: __________________________ Name: ______________________________ Title: __________________________

Total Manual Premium $ x Experience Mod

= Modified Premium $ Description Rate Modified $ Running Total + or - $ $ + or - $ $ + or - $ $ + or - $ $

= Total WC Premium $ WC Premium Rate (Cost/Payroll) $

* Use Project Site Payroll only to calculate Total Insurance cost.

LAUSD OCIP III

FORM – F NOTICE OF SUBCONTRACT AWARD

SUBCONTRACTOR MAKING AWARD: Alliant Assigned Contract # BY: TITLE: PHONE: FAX: EMAIL ADDRESS: DATE:

WE HAVE AWARDED A SUBCONTRACT AS FOLLOWS: SUBCONTRACTOR NAME: ESTIMATED ON-SITE START DATE: CONTRACT VALUE: SCOPE OF WORK SUBCONTRACTOR ADDRESS: CONTACT NAME: EMAIL ADDRESS: PHONE: FAX:

Please Note: It is the responsibility of the Contractor awarding Subcontract to ensure that their tier sub(s) fill out, maintain, and file all necessary Wrap-up Enrollment forms and Insurance documentation with the Wrap-up Administrator. No hired tier sub may commence work until they are properly enrolled into the Wrap-up program, as evidenced by a Certificate of Insurance provided by the Wrap-up Administrator Please return by Email, Fax or Mail to: Alliant Insurance Services

[Program Administrator Name] Email: [[email protected]] [Project Team Address] Fax: (XXX) XXX-XXXX [City, State XXXXX] Phone: (XXX) XXX-XXXX

LAUSD OCIP III

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Typewritten Text

Dennis McGowan 333 S Hope St. Suite 3750 Los Angeles, CA 90071

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Email: [email protected] Fax: 866-867-5811 Phone: 213-270-0996

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APPENDIX

CERTIFICATE OF INSURANCE DATE (MM/DD/YY)

PRODUCER Contractor/Subcontractor’s Insurance Broker Name & Address

THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW.

COMPANIES AFFORDING COVERAGE INSURED

COMPANY Insurance Carrier Name A

Contractor/ Subcontractor Name

COMPANY Insurance Carrier Name B

Contractor/ Subcontractor Address COMPANY Insurance Carrier Name C

COMPANY D

COVERAGES THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD

INDICATED, NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS.

CO LTR

TYPE OF INSURANCE POLICY NUMBER POLICY EFFECTIVE DATE (MM/DD/YY)

POLICY EXPIRATION DATE (MM/DD/YY)

LIMITS

GENERAL LIABILITY GENERAL AGGREGATE $2,000,000

COMMERCIAL GENERAL LIABILITY PRODUCTS-COMP/OP AGG $2,000,000 CLAIMS MADE OCCUR Policy Number Effective Date Expiration Date PERSONAL & ADV INJURY $1,000,000 OWNER'S & CONT PROT EACH OCCURRENCE $1,000,000 FIRE DAMAGE (Any one fire) $50,000

MED EXP (Any one person) $5,000 AUTOMOBILE LIABILITY ANY AUTO COMBINED SINGLE LIMIT $1,000,000

ALL OWNED AUTOS Policy Number Effective Date Expiration Date BODILY INJURY SCHEDULED AUTOS (Per Person) $ HIRED AUTOS BODILY INJURY $ NON-OWNED AUTOS (Per Accident) PROPERTY DAMAGE $ GARAGE LIABILITY AUTO ONLY - EA ACCIDENT $ ANY AUTO Policy Number Effective Date Expiration Date OTHER THAN AUTO ONLY: EACH ACCIDENT $ AGGREGATE $ EXCESS LIABILITY EACH OCCURRENCE $ UMBRELLA FORM Policy Number Effective Date Expiration Date AGGREGATE $ OTHER THAN UMBRELLA FORM $ WORKERS’ COMPENSATION AND STATUTORY LIMITS EMPLOYERS’ LIABILITY EACH ACCIDENT $1,000,000

THE PROPRIETOR/ INCL Policy Number Effective Date Expiration Date DISEASE - POLICY LIMIT $1,000,000 PARTNERS/EXECUTIVE EXCL DISEASE - EACH EMPLOYEE $1,000,000 OFFICERS ARE:

OTHER

DESCRIPTION OF OPERATIONS/LOCATIONS/VEHICLES/SPECIAL ITEMS: Los Angeles Unified School District, the Board, its officials, employees and agents, and the OCIP Administrator as Additional Insureds as respects general liability and automobile. The coverage is Primary and Non-Contributory.

CERTIFICATE HOLDER CANCELLATION Los Angeles Unified School District c/o Alliant Insurance Services 333 S. Hope St., Suite 3750 Los Angeles, CA 90071

SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS.

AUTHORIZED REPRESENTATIVE ACORD 25-S (3/93) © ACORD CORPORATION 1993

los angeles unified school district...the lausd ocip iii - insurance manual 04/30/2013 alliant...

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