§ 58-31-65. Owner-controlled or wrap-up insurance authorized.
§ 58‑31‑65. Owner‑controlledor wrap‑up insurance authorized.
(a) To the extent it isdetermined necessary and in the best interest of this State, the Department mayobtain design and construction insurance or provide for self‑insuranceagainst property damage caused by this State, its departments, agencies,boards, and commissions and all officers and employees of this State inconnection with the construction of public works projects. Workers'compensation and general liability insurance may be purchased to cover bothgeneral contractors and subcontractors doing work on a specific contracted worksite. In connection with the construction of public works projects, theDepartment may also use an owner‑controlled or wrap‑up insuranceprogram if all of the following conditions are met:
(1) The total cost ofthe project or group of projects is over fifty million dollars ($50,000,000).
(2) The programmaintains completed operations coverage for a term during which coverage isreasonably commercially available as determined by the Commissioner, but in noevent for fewer than three years.
(3) Bid specificationsclearly specify for all bidders the insurance coverage provided under theprogram and the minimum safety requirements that shall be met.
(4) The program does notprohibit a contractor or subcontractor from purchasing any additional insurancecoverage that a contractor believes is necessary for protection from anyliability arising out of the contract. The cost of the additional insuranceshall not be passed through to this State on a contract bid.
(5) The program does notinclude surety insurance.
(6) The State maypurchase an owner‑controlled or wrap‑up policy that has adeductible or self‑insured retention as long as the deductible or self‑insuredretention does not exceed one million dollars ($1,000,000).
(b) For the purposes ofsubsection (a) of this section:
(1) "Owner‑controlledor wrap‑up insurance" means a series of insurance policies issued tocover this State and all of the construction managers, contractors,subcontractors, architects, and engineers on a specified contracted work siteor work sites for purposes of general liability, property damage, and workers'compensation. A State agency or the State may be a secondary insured underowner‑controlled or wrap‑up insurance.
(2) "Specificcontracted work site" means construction being performed at one site or aseries of contiguous sites separated only by a street, roadway, waterway, orrailroad right‑of‑way, or along a continuous system for the provisionof water and power. (2001‑167, s. 1.)