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The developer shall carry liability and property damage insurance covering all work during project construction, including that done by the developer’s contractor and the contractor’s subcontractors. This insurance shall also protect the district from any contingent liability prior to project acceptance.

The developer shall obtain from an insurance company, with an A.M. Best rating of “AVII” or better approved by the Insurance Commissioner of the State of Washington pursuant to RCW Title 48, commercial general liability and automobile liability insurance against claims to the developer, the district and its elected and appointed officials, officers, employees, agents and volunteers for injury to person or property which may arise from any act or omission by anyone directly or indirectly employed by the developer from or relating to the performance, supervision, or inspection of the work. The insurance policy(s) shall specifically name and include the district and its elected and appointed officials, officers, employees, agents and volunteers as additional insureds under such policy(s) with regards to damages and defense of claims arising from: (1) activities performed by or on behalf of the developer; (2) products and completed operations of the developer, or (3) premises owned, leased or used by the developer for the work proposed under this developer extension agreement. Proof of the existence of such insurance shall be provided to the district in a form acceptable to the district prior to the preconstruction meeting.

The developer shall not begin work under the agreement or under any special condition until all required insurance has been obtained and until such insurance has been reviewed and accepted by the district. The developer shall file with the district either a certified copy of all insurance policies or a certificate of insurance with the endorsements in the form included herein as are necessary to comply with these specifications.

The minimum limits of coverage shall be as follows:

General Aggregate


Products – Comp/OPS Aggregate


Personal Injury


Each Occurrence


Automobile Liability


Policies shall be kept in force until the project is accepted by the district. The district shall be given at least 45 days’ written notice of cancellation, nonrenewal, material reduction, or modification of coverage. The district may increase these limits if the scope of the proposed work warrants additional coverage.

Failure of the developer to fully comply with the requirements regarding insurance will be considered a material breach of contract and shall be cause for immediate termination of the developer extension agreement and any and all district obligations regarding same.

The coverage provided by the insurance policies shall be primary to any insurance maintained by the district, except with respect to losses attributable to the sole negligence of the district. Any insurance that might cover this agreement which is maintained by the district shall be in excess of the developer’s/contractor’s insurance and shall not contribute with it.

The insurance policy shall protect each insured in the same manner as though a separate policy had been issued to each. The inclusion of more than one insured shall not affect the rights of any insured with respect to any claim, suit or judgment made or brought by or for any other insured or by or for any employee of any other insured.

The general aggregate provisions of the insurance policy shall be amended to show that the general aggregate limit of the policies apply separately to this project.

The insurance policy shall not contain a deductible or self-insured retention in excess of $10,000 unless approved by the district.

Providing coverage in the stated amounts shall not be construed to relieve the developer from liability in excess of such limits.

The developer shall indemnify, defend and hold the district and its elected and appointed officials, officers, employees, agents and volunteers harmless from and against all losses and all claims, demands, payments, suits, actions, recoveries, and judgments of every nature and description brought or recovered against the district by reason of any act or omission of the developer, the developer’s agents or employees, in connection with the work performed under this contract, or caused or occasioned in whole or in part by reason of the presence of the developer, the developer’s contractor or subcontractors, or their property, employees or agents, upon or proximity to any property upon which work is being performed under this contract.

For the purpose of applying RCW 4.24.115 to the developer’s project, the developer and the district agree that the term “damages” applies only to the finding in a judicial proceeding and is exclusive of third party claims for damages preliminary thereto.

The developer agrees to indemnify, defend and hold harmless the district, and its elected and appointed officials, officers, employees, agents and volunteers from all claims for damages by third parties, including costs and reasonable attorney’s fees in the defense of such claims for damages, arising from performance of the work under this contract. Developer waives any right of contribution against the district.

It is agreed and mutually negotiated that in any and all claims against Silver Lake Water and Sewer District or any of its agents or employees by any employee of the developer, anyone directly or indirectly employed by any of them or anyone for whose acts any of them may be liable, the indemnification obligation hereunder constitutes developer’s and its contractor’s and subcontractor’s waiver of immunity under RCW Title 51, solely for the purposes of this indemnity.

District and developer agree that all third party claims for damage against district for which developer’s insurance carrier does not accept defense of district may be tendered by district to the developer who shall, if so tendered by district, accept and undertake to defend or settle with the claimant. District retains the right to approve claims investigation and legal counsel assigned to said claim and all investigation and legal work product regarding said claim shall be performed under a fiduciary relationship to Silver Lake Water and Sewer District. In the event that district agrees or a court finds that the claim arises from the sole negligence of district, this indemnification shall be void and district shall be responsible for all damages payable to the third party claimant. In the event that district and developer agree or a court finds that the claim arises from or includes negligence of both the developer and district, the developer shall be responsible for all damages payable by the developer to the third party claimant under the court finding, and, in addition thereto, the developer shall hereunder indemnify district for all damages paid or payable by district under the court finding an amount not to exceed the percentage of total fault attributable to the developer. For example, where the developer is 25 percent negligent, the developer shall not be required to indemnify district for any amount in excess of 25 percent of the claimant’s total damages.

Nothing contained in these insurance requirements is to be construed as limiting the extent of the developer’s and its contractor’s responsibility for payment of damages resulting from operations under this agreement. [Res. 735 § 1, 2017.]