Insurance

The following important and helpful information on insurance compliance is applicable to contracts with the Port of Los Angeles. It is recommended that this information be shared with the insurance brokers of Contractors and potential bidders and/or applicants interested in doing business with the Port of LA. For questions regarding insurance, contact the Port's Risk Management Division at (310) 732-3758, or via email to POLARiskMgmt@portla.org.

Insurance Requirements

Insurance requirements for contracts are provided in the RFP packet, tenant application, or Notice of Intent to Award packet. For film and photography insurance, click here.
 

Alternative Programs/Self-Insurance

Risk financing mechanisms such as Risk Retention Groups, Risk Purchasing Groups, off-shore carriers, captive insurance programs and self-insurance programs are subject to separate approval after the Chief Financial Officer of the Harbor Department has reviewed financial statements of the contracting company.

 

Service Providers & Artisan Tradesman Activities (S.P.A.R.T.A.) Insurance Program

S.P.A.R.T.A. is designed to provide Commercial General Liability, Professional Liability and Non-owned Automobile Liability coverage to tradesmen, artisans, contractors and tenants who would not otherwise be able to provide the insurance limits needed to successfully bid and compete for Public Entity business opportunities. For additional information, visit 2sparta.com, or call 1-800-420-0555.

All insurance must be provided by an insurer admitted to do business in California or written through a California-licensed surplus line broker. Non-admitted coverage must contain a Service of Suit clause in which the underwriters agree to submit as necessary to the jurisdiction of a California court in the event of a coverage dispute. Service of process for this purpose must be allowed upon an agent in California designated by the insurer or upon the California Insurance Commissioner.
 

Aggregate Limits/Impairment

If any of the required insurance coverages contain annual aggregate limits, the contracting company must give the City of Los Angeles Harbor Department notice of any pending claim or lawsuit which may diminish the aggregate. The contracting company must take steps to restore the impaired aggregate or provide placement insurance protection. The City of Los Angeles Harbor Department has the option to specify the minimum acceptable aggregate limit for each line of coverage required. No substantial reductions in scope of coverage which may affect City of Los Angeles Harbor Department’s protection are allowed without City of Los Angeles Harbor Department’s prior written contract.

The City of Los Angeles Harbor Department, its officers, agents, and employees must be included as additional insureds in applicable liability policies to cover the City of Los Angeles Harbor Department’s vicarious liability for the acts or omissions of the named insured. Such coverage is not expected to respond to the active negligence of the City of Los Angeles Harbor Department. The City of Los Angeles Harbor Department is to be named a Loss Payee As Its Interests May Appear in property insurance in which the City of Los Angeles Harbor Department has an interest, e.g., as a lien holder.
 

Notice of Cancellation

By terms of the contract, the contracting company agrees to maintain all required insurance in full force for the duration of the contractor’s business with the City of Los Angeles Harbor Department. Each contractually required insurance policy shall provide that it will not be canceled or reduced in coverage until after the Board of Harbor Commissioners, Attention: Risk Manager and the City Attorney of the City of Los Angeles Harbor Department have been given thirty (30) days’ prior notice (or 10 days notice of non payment of premium) by registered mail addressed to 425 S. Palos Verdes Street, San Pedro, California 90731.
 

Primary Coverage

The coverages submitted must be primary with respect to any insurance or self insurance of the City of Los Angeles Harbor Department. The City of Los Angeles Harbor Department’s program shall be excess of this insurance and non-contributing.

The following coverages may be required based on the contract’s scope of services, level of risk, or occupancy type.  Additional coverage may be required if necessary. Dollar limits of required insurance are set by statute of ordinance, or when there is no specific amount required by law; limits are based on the amount of risk to the City of Los Angeles Harbor Department from the contractor’s activities.

For coverages with an *, please refer to previous section, Policy Conditions, Additional Insured/Loss Payee.
 

General Liability*

Insurance covering your operations (and products, where applicable) is required whenever the City of Los Angeles Harbor Department is at risk of third party claims which may arise out of your work or presence on City of Los Angeles Harbor Department premises.
 

• Contractual Liability coverage is a required inclusion that covers liability of the insured assumed in a contract.
  • Premises-Operations coverage is a required inclusion that covers liability for injury or damage arising out of the insured’s premises or out of the insured’s business operations while such operation is in progress.
  • Products-completed operations coverage is a required inclusion that encompasses liability arising out of the insured’s products or business operations conducted away from the insured’s premises once those operations have been completed or abandoned. 
  • Independent Contractors is coverage for an individual or company who has signed an agreement with another party to perform some job or function on behalf of that party without the direction or oversight of the party.
  • Personal Injury is a category of insurable offenses that produce harm other than bodily injury, such as, false arrest, detention, imprisonment, malicious prosecution, wrongful eviction, slander, libel, and invasion of privacy.
  • Broad Form Property Damage is liability exposure by risk of loss to property in a contractor’s care, custody, or control, or on which contracted operations are being performed.

 

Automobile Liability*

Insurance required only where vehicles are used in performing the work of your contract or where they are driven off-road on City of Los Angeles Harbor Department premises; it is not required for simple commuting unless City of Los Angeles Harbor Department is paying mileage. However, compliance with California law requiring auto liability insurance is a contractual requirement.
 

Errors and Omissions

Insurance form that protects the insured against liability for committing an error or omission in performance of professional duties under contractual agreement with the City of Los Angeles Harbor Department. Generally, such policies are designed to cover financial losses rather than liability for bodily injury and property damage. Coverage will be specified on a project-by-project basis if you are working as a licensed professional. The length of the claims discovery period required will vary with the circumstances of the individual job.
 

Workers’ Compensation and Employer's Liability

These coverages are not required for single-person contractors. However, under state law these coverages must be provided if you have any employees at any time during the period of this contract. Waiver of Subrogation on the coverage is required. Also see U.S. Longshore and Harbor Workers' Compensation Act (ULS&H) below.

Property Insurance*

Required for persons having exclusive use of premises or equipment owned or controlled by the City of Los Angeles Harbor Department.
 

• Fire Legal Liability is required for persons occupying a portion of City of Los Angeles Harbor Department premises.

 

Ocean Marine Liability*

Insurance covering the transportation of goods and/or merchandise by vessels crossing both foreign and domestic waters including any inland or aviation transit associated with the shipment within the jurisdiction of the City of Los Angels Harbor Department. This type of marine insurance also encompasses coverage for damage to the vessels involved in shipments and any legal liability arising in the course of shipment.
 

Protection and Indemnity (P&I) Insurance*

Liability insurance for practically all maritime liability associated with the operation of a vessel under the jurisdiction of the City of Los Angeles Harbor Department, other than covered under a workers compensation policy and under the collision clause in a hull policy.
 

Jones Act (Merchant Marine Act of 1920)

Provides seamen with a negligence remedy for on-the-job injury under the jurisdiction of the City of Los Angeles Harbor Department without having to overcome employer defenses of assumption of the risk or fellow servant liability.  Contributory negligence of the employee does not bar recovery, but recovery is reduced by the proportion of negligence attributable to the employee. Employers can obtain coverage under a standard workers’ compensation policy by purchasing a maritime coverage endorsement.
 

U.S. Longshore and Harbor Worker's Compensation Act (USL&H)

This is required only when activities are in or over the water, as well as, on the docks, piers and wharves.  This is a federal law that provides no-fault workers compensation benefits to employees other than masters or crew members of a vessel injured in maritime employment under the jurisdiction of the City of Los Angeles Harbor Department – generally, in loading, unloading, repairing, or building a vessel. Employers can obtain coverage under a standard workers compensation policy by purchasing an LHWCA coverage endorsement.
 

Railroad Protective Liability*

Insurance coverage protecting a railroad under the jurisdiction of the City of Los Angeles Harbor Department from liability it incurs because of the work of contractors on or near the railroad right-of-way, dead or alive, within 50 feet. The railroad exclusion must be deleted from the corresponding General Liability policy.
 

Liquor Liability*

Common law liability imposed on those selling alcoholic beverages under the jurisdiction and property of the City of Los Angeles Harbor Department.
 

Charterer's Legal Liability*

A type of marine insurance designed to provide coverage for the liabilities including those of care, custody, and control assumed by a party chartering a vessel when the vessel’s operation remains under the control of the vessel’s owner while being used under the jurisdiction of the City of Los Angeles Harbor Department.
 

Professional Liability

Coverage designed to protect traditional professionals (e.g., physicians) and quasi-professionals (e.g., real estate brokers) against liability incurred as a result of errors and omissions in performing professional services under contractual agreement with the City of Los Angeles Harbor Department.
 

Pollution Liability or Environmental Impairment Liability*

Insurance coverage for liabilities or claims caused by contamination of an environment by substances regarded as pollutants and sometimes clean-up costs associated with pollution.
 

Fire Legal Liability

Coverage of a tenant’s liability for damage by fire to the rented premises the tenant occupies within the jurisdiction of the City of Los Angeles Harbor Department.
 

Aviation/Aircraft Liability*

Insurance coverage that protects employees and passengers of a company or other insured personnel against liabilities or injuries, and property damage caused by operation of an aircraft under the jurisdiction of the City of Los Angeles Harbor Department.