The SUBCONTRACTOR shall, at its cost and expense, subscribe the insurance policies set forth in Appendix H within fourteen (14) Days from the date of the Effective Date to cover its liabilities and responsibilities under Clauses 20, 21 and 3 and the SUBCONTRACTOR shall at all times maintain such insurance from the commencement of the Subcontract Works until final performance of its obligations under the Subcontract under Clause 23, including the repair or replacement work to be performed during the Warranty Period, as set forth below or as reasonably required by the CONTRACTOR with the insurers and the coverage of the insurance policies approved by the CONTRACTOR. The SUBCONTRACTOR shall have its insurer name the CONTRACTOR, the COMPANY and other parties designated by the CONTRACTOR as additional insureds.
The CONTRACTOR may at any time require the SUBCONTRACTOR to furnish evidence of such insurances and of the payment of the current premium. All insurance policies shall be endorsed to provide that five (5) Days’ prior written notice will be given to the CONTRACTOR in the event of cancellation or material change of such insurance. All such policies procured and maintained shall provide for a waiver of all rights of recovery or subrogation against the COMPANY, its affiliated companies, the CONTRACTOR, the CONTRACTOR’s other subcontractors, other contractors of the COMPANY and their respective subcontractors. The SUBCONTRACTOR shall take out and be responsible to take action for setting all claims at its cost and expense, including giving notification of the occurrence to the insurers.
The SUBCONTRACTOR shall not commence, or permit (if any) its subcontractors and vendors to commence, any portion of the Subcontract Works without the prior written consent of the CONTRACTOR until certified copy of insurance policies to be effected by the SUBCONTRACTOR under Clause 22.1 has been received and approved by the CONTRACTOR.
If the SUBCONTRACTOR fails to take out and maintain in force insurance referred to in Clause 22.1 or any other insurances that the SUBCONTRACTOR may be required to take out under the Subcontract, the CONTRACTOR may take out and maintain in force any such insurance and pay the necessary premium and from time to time deduct the amount paid by the CONTRACTOR from any monies otherwise due or to become due to the SUBCONTRACTOR or recover the same as a debt due from the SUBCONTRACTOR.
The CONTRACTOR may subscribe and maintain or cause to be taken out and maintained until the CONTRACTOR issues the Certificate of Acceptance in accordance with Clause 23 the following insurances and shall have its insurers name the SUBCONTRACTOR as an additional insured:
Third party liability insurance covering legal liability that may result from accidental loss or damage to any property of any third party or accidental death of or bodily injury to any person of any third party that may arise out of or in connection with the performance of the Subcontract Works at the Subcontract Works Site.
All risk insurance covering all loss and/or damage to the Main Contract Works which may be taken by the CONTRACTOR or COMPANY in accordance with the Main Contract.
In the event of any occurrence giving rise or likely to give rise to a claim under insurance maintained under the Subcontract, the SUBCONTRACTOR shall give notice thereof in writing to the CONTRACTOR immediately, at the latest within three (3) Days of the occurrence. The SUBCONTRACTOR shall preserve and protect for survey by the insurer or its representative any damaged or defective equipment and materials or other things which might prove necessary or useful by way of evidence in connection with any claim. Prior to obtaining approval from the CONTRACTOR, the SUBCONTRACTOR shall not proceed with any repair, replacement or disposal thereof. If the SUBCONTRACTOR fails to comply with the above provisions and as a consequence the CONTRACTOR cannot cover any losses, damages and/or liabilities by insurance, then such losses, damages and/or liabilities shall be indemnified by the SUBCONTRACTOR.
With respect to insurance provided by the CONTRACTOR under the Subcontract, the SUBCONTRACTOR shall furnish to the CONTRACTOR in writing, at the SUBCONTRACTOR’s cost and expense, all details of the occurrence and all relevant documents together with such evidence, vouchers, proof and explanation as the CONTRACTOR may reasonably require for insurance claim settlement.
The amount excluded from the insurance coverage as well as the amount not recoverable by insurance (including deductible or excess for insurance) as specified in the Subcontract shall be solely for the account of the SUBCONTRACTOR.
The SUBCONTRACTOR’s obligations and liabilities under the Subcontract shall not be restricted, limited or altered by any stipulation or arrangement in the Subcontract
with regard to insurance or by any approval by the CONTRACTOR of insurance and its insurers.