ARCHIVED Insurance Clauses - Update to Section 5-G of SACC Manual

Introduction

The purpose of Policy Notification (PN) 88 is to update contracting officers on changes to the Public Works and Government Services Canada (PWGSC) insurance clauses contained in the Standard Acquisitions Clauses and Conditions (SACC) Manual, Section 5-G, and referenced in Annex 6.7 of the Supply Manual. The insurance clauses have been updated to more accurately reflect standard conditions present in the marketplace.

Effective immediately, contracting officers must use the attached new and revised insurance clauses in all new contracts when appropriate. The clauses will be incorporated into Version 08-1 of the SACC Manual, to be released in Spring 2008. Until such time, contracting officers must use the full text of the appropriate clause.

Annex A contains the revisions to the list of insurance clauses in Annex 6.7 of the Supply Manual. Annex B contains the full text of each insurance clause.

Following is the list of the clauses that are either: REVISED, CANCELLED, SUPERSEDED or NEW.

ANNEX A

Revisions to Supply Manual

Annex 6.7: Insurance Clauses
(2008-xx-xx)

• A. Type of Risk - Lease of Motor Vehicles by Canada

Number
G6001C

Description
Vehicles – Long Term Lease

Number
G6005C

Description
Short Term Lease

• B. Type of Risk - Contracts not involving lease of motor vehicles and only when the potential for loss arising from the contractor's performance of the contract is identified to be high.

Number
G1001C

Description
Insurance Requirements - when there are insurance requirements in the contract

Number
G1005C

Description
Insurance - when there are no insurance requirements in the contract

Number
G1007T

Description
Insurance Requirements - when proof of insurance is required either at bid closing or upon request from the contracting officer

Risk concerning

B.1. - Loss or Damage to Government Property

Number
G3001C

Description
All Risk Property Insurance

Number
G3002C

Description
Marine Hull Insurance

Number
G3003C

Description
Aircraft Hull Insurance

Number
G3005C

Description
Comprehensive Crime Insurance

Number
G3010C

Description
All Risk in Transit Insurance

B.2. - Third Party Liability

Number:
G2001C

Description:
Commercial General Liability Insurance

Depending on the requirement, one or more of the following clauses may also need to be included in the bid solicitation and contract.

Third Party Liability - Special Risks

Number:
G2002C

Description:
Errors and Omissions Liability Insurance

Number
G2004C

Description
Medical Malpractice Liability Insurance

Number
G2020C

Description
Automobile Liability Insurance

Number
G2030C

Description
Aviation Liability Insurance

Number
G2040C

Description
Environmental Impairment Liability Insurance

Number
G2050C

Description
Bailee's Customer's Goods Insurance

Number
G2052C

Description
Warehouseman's Legal Liability Insurance

Number
G4001C

Description
Aircraft Charter Insurance

Number
G5001C

Description
Ship Repairers' Liability Insurance

Number
G5003C

Description
Marine Liability Insurance

Number
G6002C

Description
Garage Automobile Liability Insurance

ANNEX B

Table of Contents

1. G1001C (2008-XX-XX) Insurance Requirements
2. G1005C (2008-XX-XX) Insurance
3. G2001C (2008-XX-XX) Commercial General Liability Insurance
4. G2002C (2008-XX-XX) Errors and Omissions Liability Insurance
5. G2004C (2008-XX-XX) Medical Malpractice Liability Insurance
6. G2020C (2008-XX-XX) Automobile Liability Insurance
7. G2030C (2008-XX-XX) Aviation Liability Insurance
8. G2040C (2008-XX-XX) Environmental Impairment Liability Insurance
9. G2050C (2008-XX-XX) Bailee's Customer's Goods Insurance
10. G2052C (2008-XX-XX) Warehouseman's Legal Liability Insurance
11. G3001C (2008-XX-XX) All Risk Property Insurance
12. G3002C (2008-XX-XX) Marine Hull Insurance
13. G3003C (2008-XX-XX) Aircraft Hull Insurance
14. G3005C (2008-XX-XX) Comprehensive Crime Insurance
15. G3010C (2008-XX-XX) All Risk in Transit Insurance
16. G4001C (2008-XX-XX) Aircraft Charter Insurance
17. G5001C (2008-XX-XX) Ship Repairers' Liability Insurance
18. G5003C (2008-XX-XX) Marine Liability Insurance
19. G6001C (2008-XX-XX) Vehicles - Long term Lease
20. G6002C (2008-XX-XX) Garage Automobile Liability Insurance
21. G6005C (2008-XX-XX) Short Term Lease

Revisions to SACC Manual Clauses

G1001C (2008-XX-XX) Insurance Requirements

Remarks:

Risk arising from work under the contract should be identified and assessed to determine whether specific insurance requirements should be included in the contract. All contracts must include either this clause or clause G1005C as may be applicable.

Use the following clause when insurance requirements are specifically described in the contract. Contracting officers must insert the applicable insurance clauses contained in Section 5-G of the Standard Acquisition Clauses and Conditions Manual in an annex to the contract.  For any other insurance requirements, contact PWGSC Risk Management Advisory Services, at: ncr.rmias-scgra@tpsgc-pwgsc.gc.ca.

Use clause G1005C when there is no specific insurance requirements to be included in the contract.

Text:

The Contractor must comply with the insurance requirements specified in Annex ____. The Contractor must maintain the required insurance coverage for the duration of the Contract. Compliance with the insurance requirements does not release the Contractor from or reduce its liability under the Contract.

The Contractor is responsible for deciding if additional insurance coverage is necessary to fulfill its obligation under the Contract and to ensure compliance with any applicable law. Any additional insurance coverage is at the Contractor's expense, and for its own benefit and protection.

The Contractor must forward to the Contracting Authority within ten (10) days after the date of award of the Contract, a Certificate of Insurance evidencing the insurance coverage and confirming that the insurance policy complying with the requirements is in force. Coverage must be placed with an Insurer licensed to carry out business in Canada. The Contractor must, if requested by the Contracting Authority, forward to Canada a certified true copy of all applicable insurance policies.

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G1005C  (2008-XX-XX) Insurance

Remarks:

All contracts must contain either this clause or G1001C as may be applicable.

Use the following clause when there is no specific insurance requirement. Use clause G1001C when there are specific insurance requirements included in the contract.

For further assistance, contact to PWGSC Risk Management Advisory Services, at: ncr.rmias-scgra@tpsgc-pwgsc.gc.ca.

Text:

The Contractor is responsible for deciding if insurance coverage is necessary to fulfill its obligation under the Contract and to ensure compliance with any applicable law. Any insurance acquired or maintained by the Contractor is at its own expense and for its own benefit and protection. It does not release the Contractor from or reduce its liability under the Contract.

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G2001C (2008-XX-XX) Commercial General Liability Insurance

Remarks:

Use the following clause when insurance requirements are specifically described in the contract (except when using G2030C, G4001C or G5003C).

Whenever the liabilities of Canada and the contractor with respect to the contract are difficult to separate, contracting officers must replace paragraph 2.(a) by the following option:

"Additional Named Insured: Canada is added as an additional named insured, but only with respect to liability arising out of the performance of the Contract."

Contracting officers must choose options (l), (m), (n), (o), (p), (q) and/or (r) in paragraph 2 when applicable to their specific contract.

Contracting officers must consult PWGSC Risk Management Advisory Services, at: ncr.rmias-scgra@tpsgc-pwgsc.gc.ca if the suggested limit of $2,000,000 per accident or occurrence is not considered adequate.

Construction Contracts: For the majority of construction contracts, the Contractor's Commercial General Liability Insurance policy is sufficient to protect the interests of Canada. If a large, multi-million dollar project involving many contractors and subcontractors is being planned, then a separate Wrap-Up Liability Insurance policy should be arranged specific to the project. Clauses pertaining to wrap-up liability should be drafted at that time and will be specific to the project.

Text:

1. The Contractor must obtain Commercial General Liability Insurance, and maintain it in force throughout the duration of the Contract, in an amount usual for a contract of this nature, but for not less than $2,000,000 per accident or occurrence and in the annual aggregate.
2. The Commercial General Liability Insurance policy must include the following:
   
   1. Additional Insured: Canada is added as an additional insured, but only with respect to liability arising out of the Contractor's performance of the Contract. The interest of Canada should read as follows: Canada, as represented by Public Works and Government Services Canada.
   2. Bodily Injury and Property Damage to third parties arising out of the operations of the Contractor.
   3. Products and Completed Operations: Coverage for bodily injury or property damage arising out of goods or products manufactured, sold, handled, or distributed by the Contractor and/or arising out of operations that have been completed by the Contractor.
   4. Personal Injury: While not limited to, the coverage must include Violation of Privacy, Libel and Slander, False Arrest, Detention or Imprisonment and Defamation of Character.
   5. Cross Liability/Separation of Insureds: Without increasing the limit of liability, the policy must protect all insured parties to the full extent of coverage provided. Further, the policy must apply to each Insured in the same manner and to the same extent as if a separate policy had been issued to each.
   6. Blanket Contractual Liability: The policy must, on a blanket basis or by specific reference to the Contract, extend to assumed liabilities with respect to contractual provisions.
   7. Employees and, if applicable, Volunteers must be included as Additional Insured.
   8. Employers' Liability (or confirmation that all employees are covered by Worker's compensation (WSIB) or similar program)
   9. Broad Form Property Damage including Completed Operations: Expands the Property Damage coverage to include certain losses that would otherwise be excluded by the standard care, custody or control exclusion found in a standard policy.
   10. Notice of Cancellation: The Insurer will endeavour to provide the Contracting Authority thirty (30) days written notice of policy cancellation.
   11. If the policy is written on a claims-made basis, coverage must be in place for a period of at least 12 months after the completion or termination of the Contract.
       

       (Contracting officers must insert the applicable options below and renumber accordingly.)

   12. Owners' or Contractors' Protective Liability: Covers the damages that the Contractor becomes legally obligated to pay arising out of the operations of a subcontractor.
   13. Non-owned Automobile Liability - Coverage for suits against the Contractor resulting from the use of hired or non-owned vehicles.
   14. Advertising Injury: While not limited to, the endorsement must include coverage piracy or misappropriation of ideas, or infringement of copyright, trademark, title or slogan.
   15. All Risks Tenants Legal Liability - to protect the Contractor for liabilities arising out of its occupancy of leased premises.
   16. Amendment to the Watercraft Exclusion to extend to incidental repair operations on board watercraft.
   17. Sudden and Accidental Pollution Liability (minimum 120 hours): To protect the Contractor for liabilities arising from damages caused by accidental pollution incidents.
   18. Litigation Rights: Pursuant to subsection 5(d) of the Department of Justice Act, S.C. 1993, c. J-2, s.1, if a suit is instituted for or against Canada which the Insurer would, but for this clause, have the right to pursue or defend on behalf of Canada as an Additional Named Insured under the insurance policy, the Insurer must promptly contact the Attorney General of Canada to agree on the legal strategies by sending a letter, by registered mail or by courier, with an acknowledgement of receipt.

       For the province of Quebec, send to:
       Director Business Law Directorate,
       Quebec Regional Office (Ottawa),
       Department of Justice,
       284 Wellington Street, Room SAT-6042,
       Ottawa, Ontario, K1A 0H8

       For other provinces and territories, send to:
       Senior General Counsel,
       Civil Litigation Section,
       Department of Justice
       234 Wellington Street, East Tower
       Ottawa, Ontario   K1A 0H8

A copy of the letter must be sent to the Contracting Authority. Canada reserves the right to co-defend any action brought against Canada. All expenses incurred by Canada to co-defend such actions will be at Canada's expense. If Canada decides to co-defend any action brought against it, and Canada does not agree to a proposed settlement agreed to by the Contractor's insurer and the plaintiff(s) that would result in the settlement or dismissal of the action against Canada, then Canada will be responsible to the Contractor's insurer for any difference between the proposed settlement amount and the amount finally awarded or paid to the plaintiffs (inclusive of costs and interest) on behalf of Canada.

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G2002C  (2008-XX-XX) Errors and Omissions Liability Insurance

Remarks:

Use the following clause in professional services contracts. For example: consulting, design, training, educational, management, architectural, engineering, research & development.

Use this clause in conjunction with G2001C.

If the professional services are medical in nature or related to healthcare, use clause G2004C.

Contracting officers must consult PWGSC Risk Management Advisory Services, at:
ncr.rmias-scgra@tpsgc-pwgsc.gc.ca if the suggested limit of $1,000,000 per accident or occurrence is not considered adequate as alternate limits may be established.

Text:

1. The Contractor must obtain Errors and Omissions Liability (a.k.a. Professional Liability) Insurance, and maintain it in force throughout the duration of the Contract, in an amount usual for a contract of this nature but for not less than $1,000,000 per loss and in the annual aggregate, inclusive of defence costs.
2. If the policy is written on a claims-made basis, coverage must be in place for a period of at least 12 months after the completion or termination of the Contract.
3. The following endorsement must be included:

   Notice of Cancellation: The Insurer will endeavour to provide the Contracting Authority thirty (30) days written notice of cancellation.

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G2004C (2008-XX-XX) Medical Malpractice Liability Insurance

Remarks:

Use the following clause in contracts when the services involve medical/healthcare professionals.

Use this clause in conjunction with G2001C.

Contracting officers must consult PWGSC Risk Management Advisory Services, at: ncr.rmias-scgra@tpsgc-pwgsc.gc.ca if the suggested limit of $1,000,000 per accident or occurrence is not considered adequate as alternate limits may be established.

Text:

1. The Contractor must obtain Medical Malpractice Liability Insurance, and maintain it in force throughout the duration of the Contract, in an amount usual for a contract of this nature, but for not less than $1,000,000 per loss and in the annual aggregate, inclusive of the defence costs.
2. Coverage is for what is standard in a Medical Malpractice policy and must be for claims arising out of the rendering or failure to render medical services resulting in injury, mental injury, illness, disease or death of any person caused by any negligent act, error or omission committed by the Contractor in or about the conduct of the Contractor's professional occupation or business of good samaritan acts.
3. If the policy is written on a claims-made basis, coverage must be in place for a period of at least 12 months after the completion or termination of the Contract.
4. Notice of Cancellation: The Insurer will endeavour to provide the Contracting Authority thirty (30) days written notice of cancellation.

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G2020C (2008-XX-XX) Automobile Liability Insurance

Remarks:

Use the following clause in contracts when the contractor must use its own vehicle to perform the work even though automobile liability insurance, at varying limits, is statutory in all Canadian jurisdictions.

When contracting with rental companies for the use of short-term leases by Federal Government employees, refer to clause G6005C.

Contracting officers must choose options (e), (f), (g), (h), (i), (j), (k), (l), and/or (m) under paragraph 2 when applicable to their specific contract.

Contracting officers must consult PWGSC Risk Management Advisory Services at:
ncr.rmias-scgra@tpsgc-pwgsc.gc.ca if the suggested limit of $2,000,000 per accident or occurrence is not considered adequate.

Text:

1. The Contractor must obtain Automobile Liability insurance, and maintain it in force throughout the duration of the Contract, in an amount usual for a contract of this nature, but for not less than $2,000,000 per accident or occurrence.
2. The policy must include the following:
   
   1. Third Party Liability - $2,000,000 Minimum Limit per Accident or Occurrence
   2. Accident Benefits - all jurisdictional statutes
   3. Uninsured Motorist Protection
   4. Notice of Cancellation: The Insurer will endeavour to provide the Contracting Authority thirty (30) days written notice of cancellation.

      (Contracting officers must insert the applicable options below and renumber accordingly.)

   5. OPCF/SEF/QEF #3 - Drive Government Automobiles Endorsement
   6. OPCF/QEF/SEF #4B - Permission to Carry Radioactive Material Endorsement
   7. OPCF/QEF/SEF #4a - Permission to Carry Explosives
   8. OPCF/SEF/QEF #6a - Permission to Carry Passengers for Compensation or Hire
   9. OPCF/SEF/QEF #6b - School Bus Endorsement
   10. OPCF/SEF/QEF #6c - Public Passenger Vehicles Endorsement
   11. OPCF/SEF/QEF #6f - Public Passenger Vehicles - Combined Limits for Passengers and road liability Passenger Hazard/Bodily Injury Minimum Limits required:
       8 to 12 Passengers: $5,000,000
       13 or more Passengers: $8,000,000
   12. Liability for Physical Damage to Non-owned Automobiles: Ontario OPCF 27 or 27B / Quebec: QEF #27 / Other Provinces: SEF#27
   13. OPCF/SEF/QEF #44 or #44R - Family Protection Endorsement - Private Passenger Vehicles.

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G2030C (2008-XX-XX) Aviation Liability Insurance

Remarks:

Use the following clause in contracts where the requirement includes operation of an aircraft, operation of airport premises, products or services that are provided and/or intended for flight related activities.

Whenever the liabilities of Canada and the contractor with respect to the contract are difficult to separate, contracting officers must replace paragraph 2.(a) by the following option:

"Additional Named Insured: Canada is added as an additional named insured, but only with respect to liability arising out of the performance of the Contract."

Contracting officers must choose options (i), (j), (k), (l), (m) and/or (o) in paragraph 2 when applicable to their specific contract.

Contracting officers must consult PWGSC Risk Management Advisory Services, at: ncr.rmias-scgra@tpsgc-pwgsc.gc.ca if the suggested limit of $5,000,000 per accident or occurrence is not considered adequate.

Text:

1. The Contractor must obtain Aviation Liability Insurance for Bodily Injury (including passenger Bodily Injury) and Property Damage, and maintain it in force throughout the duration of the Contract, in an amount usual for a contract of this nature, but for not less than $5,000,000 per accident or occurrence and in the annual aggregate.
2. The Aviation Liability policy must include the following:
   
   1. Additional Insured: Canada is added as an additional insured, but only with respect to liability arising out of the Contractor's performance of the Contract. The interest of Canada should read as follows: Canada, represented by Public Works and Government Services Canada.
   2. Notice of Cancellation: The Insurer will endeavour to provide the Contracting Authority thirty (30) days written notice of policy cancellation.
   3. Cross Liability/Separation of Insureds: Without increasing the limit of liability, the policy must protect all insured parties to the full extent of coverage provided. Further, the policy must apply to each Insured in the same manner and to the same extent as if a separate policy had been issued to each.
   4. Contractual Liability: The policy must, on a blanket basis or by specific reference to the Contract, extend to assumed liabilities with respect to contractual provisions.
   5. Employees and, where applicable, Volunteers must be included as Additional Insured.
   6. Aviation Passenger Liability and inclusive Medical Payments: If sub-limits are applicable to Contractor's policy conforming to international carriage agreements or otherwise, such sub-limits must in any event be, not less than, $300,000 per person. The per accident limit should be no less than $300,000 multiplied by the number of passengers.
   7. If the policy is written on a claims-made basis, coverage must be in place for a period of at least 12 months after the completion or termination of the Contract.
   8. Employers Liability (unless we have confirmation that all employees are covered by Worker's compensation (WSIB) or similar program)
      

      (Contracting officers must insert the applicable options below and renumber accordingly.)

   9. Hangarkeeper's Liability: To cover loss of and/or damage to aircraft on the ground in the care, custody or control of the Contractor.
   10. Products and Completed Operations: To cover liability arising from the sale and service of aviation products, assembly and repair activities, in connection with the Work performed by or on behalf of the Contractor.
   11. Airport Tenants' Legal Liability Broad Form: To protect the Contractor for liabilities arising from its occupancy of leased airport premises.
   12. Non-owned Aircraft Liability: To protect the Contractor for liabilities arising from its use of aircraft owned by other parties including Canada.
   13. Control Tower Liability: To cover for all liabilities arising from the ownership and/or operations of air traffic control towers
   14. Permission to Transport Hazardous Goods. The Insured must also obtain all the applicable provincial or federal permission to transport hazardous material in addition to this endorsement.
   15. Litigation Rights: Pursuant to subsection 5(d) of the Department of Justice Act, S.C. 1993, c. J-2, s.1, if a suit is instituted for or against Canada which the Insurer would, but for this clause, have the right to pursue or defend on behalf of Canada as an Additional Named Insured under the insurance policy, the Insurer must promptly contact the Attorney General of Canada to agree on the legal strategies by sending a letter, by registered mail or by courier, with an acknowledgement of receipt.

       For the province of Quebec, send to:
       Director Business Law Directorate,
       Quebec Regional Office (Ottawa),
       Department of Justice,
       284 Wellington Street, Room SAT-6042,
       Ottawa, Ontario, K1A 0H8

       For other provinces and territories, send to:
       Senior General Counsel,
       Civil Litigation Section,
       Department of Justice
       234 Wellington Street, East Tower
       Ottawa, Ontario   K1A 0H8

A copy of the letter must be sent to the Contracting Authority. Canada reserves the right to co-defend any action brought against Canada. All expenses incurred by Canada to co-defend such actions will be at Canada's expense. If Canada decides to co-defend any action brought against it, and Canada does not agree to a proposed settlement agreed to by the Contractor's insurer and the plaintiff(s) that would result in the settlement or dismissal of the action against Canada, then Canada will be responsible to the Contractor's insurer for any difference between the proposed settlement amount and the amount finally awarded or paid to the plaintiffs (inclusive of costs and interest) on behalf of Canada.

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G2040C (2008-XX-XX) Environmental Impairment Liability Insurance

Remarks:

Use the following clause in contracts when Environmental Impairment Liability Insurance is required. Environmental Impairment Liability insurance protects the contractor against claims caused by gradual and sudden and accidental pollution damage to the environment as well as Bodily Injury and Property Damage to third parties.

There are four main types of Environmental Insurance coverage that may be carried by contractors depending on their operations. Contracting officers must insert one of the four types of insurance in paragraph 1 and 3 below:

1. Type 1: "Pollution Legal Liability - Fixed Site Coverage"
2. Type 2: "Contractors Pollution Liability"
3. Type 3: "Storage Tank Third Party Liability"
4. Type 4: "Contractors Professional Liability"

Whenever the liabilities of Canada and the contractor with respect to the contract are difficult to separate, contracting officers must replace paragraph 3. (a) by the following option:

"Additional Named Insured: Canada is added as an additional named insured, but only with respect to liability arising out of the performance of the Contract."

Contracting officers must choose options (f) and/or (g) in paragraph 3 when applicable to their contract.

Depending on the services being provided by the contractor (ex: non-hazardous operations), it is acceptable to simply use clause G2001C and include endorsement (r) Sudden and Accidental Pollution. However, it is important to note that Canada would have to discover the claim and report it within 120 hours for the coverage to respond.

Contracting officers must consult PWGSC Risk Management Advisory Services, at: ncr.rmias-scgra@tpsgc-pwgsc.gc.ca if the suggested limit of $1,000,000 per accident or occurrence is not considered adequate.

Text:

1. The Contractor must obtain _______ (Contracting officers must insert one of the four types of environmental insurance coverage provided under the remarks section above) insurance, and maintain it in force throughout the duration of the Contract, in an amount usual for a contract of this nature, but for not less than $1,000,000 per accident or occurrence and in the annual aggregate.
2. If the policy is written on a claims-made basis, coverage must be in place for a period of at least 12 months after the completion or termination of the Contract.
3. The (Contracting officers must insert one of the four types of environmental insurance coverage provided under the remarks section above) policy must include the following:
   
   1. Additional Insured: Canada is added as an additional insured, but only with respect to liability arising out of the Contractor's performance of the Contract. The interest of Canada as additional insured should read as follows: Canada, represented by Public Works and Government Services Canada.
   2. Notice of Cancellation: The Insurer will endeavour to provide the Contracting Authority thirty (30) days written notice of policy cancellation.
   3. Separation of Insureds: The policy must apply to each Insured in the same manner and to the same extent as if a separate policy had been issued to each.
   4. Contractual Liability: The policy must, on a blanket basis or by specific reference to the Contract, extend to assumed liabilities with respect to contractual provisions.
   5. Incidental Transit Extension: The policy must extend to losses arising from any waste, products or materials transported, shipped, or delivered via any transportation mode to a location beyond the boundaries of a site at which the Contractor or any entity for which the Contractor is legally liable is performing or has performed the operations described in the contract.
      

      (Contracting officers must insert the applicable options below and renumber accordingly.)

   6. Storage Tank Third-Party Liability - The policy must extend to off-site third party bodily injury and property damage due to releases from storage tanks (above and below ground). Coverage must include corrective action and clean-up due to releases from storage tanks.
   7. Litigation Rights: Pursuant to subsection 5(d) of the Department of Justice Act, S.C. 1993, c. J-2, s.1, if a suit is instituted for or against Canada which the Insurer would, but for this clause, have the right to pursue or defend on behalf of Canada as an Additional Named Insured under the insurance policy, the Insurer must promptly contact the Attorney General of Canada to agree on the legal strategies by sending a letter, by registered mail or by courier, with an acknowledgement of receipt.

      For the province of Quebec, send to:
      Director Business Law Directorate,
      Quebec Regional Office (Ottawa),
      Department of Justice,
      284 Wellington Street, Room SAT-6042,
      Ottawa, Ontario, K1A 0H8

      For other provinces and territories, send to:
      Senior General Counsel,
      Civil Litigation Section,
      Department of Justice
      234 Wellington Street, East Tower
      Ottawa, Ontario   K1A 0H8

A copy of the letter must be sent to the Contracting Authority. Canada reserves the right to co-defend any action brought against Canada. All expenses incurred by Canada to co-defend such actions will be at Canada's expense. If Canada decides to co-defend any action brought against it, and Canada does not agree to a proposed settlement agreed to by the Contractor's insurer and the plaintiff(s) that would result in the settlement or dismissal of the action against Canada, then Canada will be responsible to the Contractor's insurer for any difference between the proposed settlement amount and the amount finally awarded or paid to the plaintiffs (inclusive of costs and interest) on behalf of Canada.

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G2050C (2008-XX-XX) Bailee's Customer's Goods Insurance

Remarks:

Use the following clause where the contractor has care, custody or control of Government Property for maintenance or repair such as dry cleaners and repair facilities. For storage facilities, use clause G2052C.

The value and basis of valuation of Government Property must be filled in the clause. The basis of valuation of this property should be established with the client and mentioned in the contractor's insurance policy. Contracting officers must insert one of the options provided in the second blank of paragraph 1.

The limits are to be evaluated on a case-by-case basis. For further assistance, contact PWGSC Risk Management Advisory Services, at: ncr.rmias-scgra@tpsgc-pwgsc.gc.ca.

Text:

The Contractor must obtain Bailee's Customer's Goods Insurance while Government Property is under its care, custody or control for repair or servicing, and maintain it in force throughout the duration of the Contract, in an amount of not less than $_____. Government Property must be insured on a ___________ basis. (Contracting officers must insert one of the following basis of valuation: "Replacement Cost (new)"; "Actual Cash Value (depreciated cost)", or "Agreed Value (appraisal)".)

1. Administration of Claims: The Contractor must notify Canada promptly about any losses or damages to Government Property and monitor, investigate and document losses of or damage to ensure that claims are properly made and paid.
2. The Bailee's Customer's Goods must include the following:
   
   1. Notice of Cancellation: The Insurer will endeavour to provide the Contracting Authority thirty (30) days written notice of cancellation.
   2. Settlement of Claims: The insurance proceeds regarding any loss of or damage to Government Property must be payable to the appropriate party as directed by the Contracting Authority.
   3. Waiver of Subrogation Rights: Contractor's Insurer to waive all rights of subrogation against Canada as represented by ____________ (insert department) and Public Works and Government Services Canada for any and all loss of or damage to the property however caused.

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G2052C (2008-XX-XX) Warehouseman's Legal Liability Insurance

Remarks:

Use the following clause in contract when the contractor has care, custody or control of government property for storage. Warehouseman's Liability Insurance protects the contractor against claims for damages caused by its negligence to goods in its care, custody or control while in storage.

The value and basis of valuation of government property must be filled in the clause. The basis of valuation of this property should be established with the client and mentioned in the contractor's insurance policy. Contracting officers must insert one of the options provided in the second blank of paragraph 1.

The limits are to be evaluated on a case-by-case basis. For further assistance, contact PWGSC Risk Management Advisory Services, at: ncr.rmias-scgra@tpsgc-pwgsc.gc.ca.

Text:

1. The Contractor must obtain Warehouseman's Legal Liability Insurance coverage on Government Property, and maintain it in force while under its care, custody or control for storage, in an amount of not less than $______. The Government's Property must be insured on a _________ basis. (Contracting officers must insert one of the following basis of valuation: "Replacement Cost (new)"; "Actual Cash Value (depreciated cost)", or "Agreed Value (appraisal)")
2. Administration of Claims: The Contractor must notify Canada promptly about any losses or damages to Government Property and monitor, investigate and document losses of or damage to Government Property to ensure that claims are properly made and paid.
3. The following endorsements must be included:
   
   1. Notice of Cancellation: The Insurer will endeavour to provide the Contracting Authority thirty (30) days written notice of cancellation.
   2. Settlement of Claims: The insurance proceeds regarding any loss of or damage to Government Property must be payable to the appropriate party as directed by the Contracting Authority.
   3. Loss Payee: Canada as its interest may appear or it may direct.
   4. Waiver of Subrogation Rights: Contractor's Insurer to waive all rights of subrogation against Canada as represented by ____________ (insert department) and Public Works and Government Services Canada for any and all loss of or damage to the property however caused.

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G3001C (2008-XX-XX) All Risk Property Insurance

Remarks:

Use the following clause in all contracts where the contractor has care, custody or control of government property other than for maintenance, repair or storage. For maintenance and repair, use clause G2050C; for storage facilities, use clause G2052C; for money and securities, use clause G3005C; and while the property is in transit, use clause G3010C.

All Risks Property Insurance is required to cover loss or damage to Government Property.

The value and basis of valuation of government property must be filled in the clause. The basis of valuation of this property should be established with the client and mentioned in the contractor's insurance policy. Contracting officers must insert one of the options provided in the second blank of paragraph 1.

The values are to be evaluated on a case-by-case basis. For further assistance, contact PWGSC's Risk Management Advisory Services, at: ncr.rmias-scgra@tpsgc-pwgsc.gc.ca.

Text:

The Contractor must obtain All Risks Property Insurance while the Government Property is under its care, custody or control, and maintain it in force throughout the duration of the Contract, in an amount of not less than $______. The Government's Property must be insured on ___________ basis. (Contracting officers must insert one of the following basis of valuation: "Replacement Cost (new)"; "Actual Cash Value (depreciated cost)", or "Agreed Value (appraisal)".)

1. Administration of Claims: The Contractor must notify Canada promptly about any losses or damages to Government Property and monitor, investigate and document losses of or damage to ensure that claims are properly made and paid.
2. The All Risks Property Insurance policy must include the following:
   
   1. Notice of Cancellation: The Insurer will endeavour to provide the Contracting Authority at least thirty (30) days written notice of policy cancellation.
   2. Loss Payee: Canada as its interest may appear or as it may direct.
   3. Waiver of Subrogation Rights: Contractor's Insurer to waive all rights of subrogation against Canada as represented by ____________ (insert department) and Public Works and Government Services Canada for any and all loss of or damage to the property however caused.

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G3002C (2008-XX-XX) Marine Hull Insurance

Remarks:

Use the following clause in contracts where insurance coverage for the watercraft is required.

For further assistance, contact PWGSC Risk Management Advisory Services, at: ncr.rmias-scgra@tpsgc-pwgsc.gc.ca.

Text:

• 1. The Contractor must obtain Hull & Machinery Insurance covering the watercraft, its equipment and appurtenances, and maintain it in force for the duration of the contract for an amount of not less than the agreed value of the watercraft as described below. Coverage must conform to the American Institute Hull Clauses (June 2, 1977) or an agreed equivalent. 

  (Contracting officers must insert the type of watercraft (make and model) and the value to be insured)

Watercraft Agreed Value

• 2. The policy must include the following endorsements:
  
  1. Waiver of Subrogation Rights: Contractor's Insurer to waive all rights of subrogation against Canada as represented by ____________ (insert department) and Public Works and Government Services Canada for any and all loss of or damage to the watercraft, however caused.
  2. Notice of Cancellation: The Insurer will endeavour to provide the Contracting Authority thirty (30) days written notice of cancellation.

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G3003C (2008-XX-XX) Aircraft Hull Insurance

Remarks:

Use the following clause in contracts where the contractor has care, custody or control of aircrafts owned by Canada.

The value and basis of valuation of government property must be filled in the clause. The basis of valuation of this property should be established with the client and mentioned in the contractor's insurance policy. Contracting officers must insert one of the options provided in the second blank of paragraph 1.

The limits are to be evaluated on a case-by-case basis. For further assistance, contact PWGSC Risk Management Advisory Services, at: ncr.rmias-scgra@tpsgc-pwgsc.gc.ca.

Text:

The Contractor must obtain Aircraft Hull Insurance including All Risks Flight and Ground coverage, and maintain it in force throughout the duration of the contract, in an amount of not less than ____________. The Aircraft must be insured on (Contracting officers must insert one of the following: "Replacement Cost (new)"; "Actual Cash Value (depreciated cost)", or "Agreed Value (appraisal)".) value basis.

The Aircraft Hull Insurance policy must include the following:

1. Waiver of Subrogation: Contractor's Insurer to waive all rights of subrogation against Canada as represented by ____________ (insert department) and Public Works and Government Services Canada for any and all loss of or damage to the aircraft however caused.
2. Notice of Cancellation: The Insurer will endeavour to provide the Contracting Authority thirty (30) days written notice of cancellation.

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G3005C (2008-XX-XX) Comprehensive Crime Insurance

Remarks:

Use the following clause in contracts when contractor's employees will have care, custody or control of money, securities, and other valuable property belonging to other parties such as administering cash or instruments of securities; property of value that is in the trust of the contractor or that the contractor purchases on behalf of Canada.

Employee Dishonesty Insurance can be regarded as a formal bonding for the contractor's employees.

The limits are to be evaluated on a case-by-case basis. For further assistance, contact PWGSC Risk Management Advisory Services, at: ncr.rmias-scgra@tpsgc-pwgsc.gc.ca.

Text:

1. The Contractor must obtain Comprehensive Crime (Fidelity) Insurance on a blanket basis, and maintain it in force throughout the duration of the contract period, in an amount as listed below:
   
   1. Insuring Agreement 1: Employee Dishonesty (Form A) in an amount of not less than $______ covering all employees of the Contractor. Such Fidelity Insurance must contain a "Third-Party Extension" or "Client Coverage" extending such coverage to Canada with respect to the risks associated with this agreement.
   2. Agreement II/III: Money & Securities Loss Inside Premises/Outside Premises in an amount not less than $________;
2. The Comprehensive Crime Insurance must include the following:
   
   1. Notice of Cancellation: The Insurer will endeavour to provide the Contracting Authority thirty (30) days written notice of policy cancellation.
   2. Loss Payee: Canada as its interest may appear or as it may direct.

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G3010C (2008-XX-XX) All Risk in Transit Insurance

Remarks:

Use the following clause in contracts when the contractor has care, custody or control of government property while in transit.

The value and basis of valuation of government property must be filled in the clause. The basis of valuation of this property should be established with the client and mentioned in the contractor's insurance policy. Contracting officers must insert one of the options provided in the second blank of paragraph 1.

The limits are to be evaluated on a case-by-case basis. For further assistance, contact PWGSC Risk Management Advisory Services, at: ncr.rmias-scgra@tpsgc-pwgsc.gc.ca.

Text:

1. The Contractor must obtain on the government property, and maintain in force throughout the duration of the Contract, All Risk Property in Transit Insurance coverage for all applicable conveyances while under its care, custody or control, in an amount of not less than $______ per shipment. Government property must be insured on _________ basis. (Contracting officers must insert one of the following basis of valuation: "Replacement Cost (new)"; "Actual Cash Value (depreciated cost)", or "Agreed Value (appraisal)".)
2. Administration of Claims: The Contractor must notify Canada promptly about any losses or damages to government property and monitor, investigate and document losses of or damage to ensure that claims are properly made and paid.
3. The All Risk Property in Transit insurance must include the following:
   
   1. Notice of Cancellation: The Insurer will endeavour to provide the Contracting Authority at least thirty (30) days written notice of any policy cancellation.
   2. Loss Payee: Canada as its interest appears or as it may direct.
   3. Waiver of Subrogation Rights: Contractor's Insurer to waive all rights of subrogation against Canada as represented by ____________ (insert department) and Public Works and Government Services Canada for any and all loss of or damage to the property however caused.

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G4001C (2008-XX-XX) Aircraft Charter Insurance

Remarks:

Use the following clause when chartering an aircraft.

Whenever the liabilities of Canada and the contractor with respect to the contract are difficult to separate, contracting officers must replace paragraph 3.(a) by the following option:

"Additional Named Insured: Canada is added as an additional named insured, but only with respect to liability arising out of the performance of the Contract."

Contracting officers must choose option (e) in paragraph 3 below when applicable to their contract.

For further assistance, contact PWGSC Risk Management Advisory Services, at: ncr.rmias-scgra@tpsgc-pwgsc.gc.ca.

Text:

1. The Contractor must not provide a domestic or international aircraft charter service to Canada unless, for every incident related to the Contractor's operation of that service, it has:

   1. liability insurance covering risks of injury to or death of passengers in an amount that is not less than the amount determined by multiplying $300,000 by the number of passenger seats on board the aircraft engaged in the service, or in accordance with the applicable regulations, whichever is greater;
   2. in addition to passenger liability limits in (a) above, insurance covering risks of public liability in an amount that is not less than:
      
      1. $1,000,000, where the maximum permissible take-off weight of the aircraft less than 3,402 kg (7,500 pounds
      2. $2,000,000, where the maximum permissible take-off weight of the aircraft is between 3,402 kg (7,500 pounds) and 8,165kg (18,000 pounds); and,
      3. $2,000,000 plus an amount determined by multiplying $68 by the number of kilograms by which the maximum permissible take-off weight of the aircraft exceeds 8,165 kg (18,000 pounds), where the maximum permissible take-off weight of the aircraft is over 8,165 kg.
2. The insurance coverage required by subsection 1.(a) does not need  to extend to any passenger who is an employee of the Contractor if workers' compensation legislation governing a claim for damages against that Contractor by the employee is applicable.
3. The Contractor's insurance must include the following:
   
   1. Additional Insured: Canada is added as an additional insured, but only with respect to liability arising out of the Contractor's performance of the Contract. The interest of Canada as additional insured should read as follows: Canada, represented by Public Works and Government Services Canada.
   2. Notice of Cancellation: The Insurer will endeavour to provide the Contracting Authority thirty (30) days written notice of cancellation.
   3. Cross Liability/Separation of Insureds: Without increasing the limit of liability, the policy must protect all insured parties to the full extent of coverage provided. Further, the policy must apply to each Insured in the same manner and to the same extent as if a separate policy had been issued to each.
   4. Contractual Liability: The policy must, on a blanket basis or by specific reference to the contract, extend to assumed liabilities with respect to contractual obligations.
      

      (Contracting officers must insert the following option, if applicable.)

   5. Litigation Rights: Pursuant to subsection 5(d) of the Department of Justice Act, S.C. 1993, c. J-2, s.1, if a suit is instituted for or against Canada which the Insurer would, but for this clause, have the right to pursue or defend on behalf of Canada as an Additional Named Insured under the insurance policy, the Insurer must promptly contact the Attorney General of Canada to agree on the legal strategies by sending a letter, by registered mail or by courier, with an acknowledgement of receipt.

      For the province of Quebec, send to:
      Director Business Law Directorate,
      Quebec Regional Office (Ottawa),
      Department of Justice,
      284 Wellington Street, Room SAT-6042,
      Ottawa, Ontario, K1A 0H8

      For other provinces and territories, send to:
      Senior General Counsel,
      Civil Litigation Section,
      Department of Justice
      234 Wellington Street, East Tower
      Ottawa, Ontario   K1A 0H8

A copy of the letter must be sent to the Contracting Authority. Canada reserves the right to co-defend any action brought against Canada. All expenses incurred by Canada to co-defend such actions will be at Canada's expense. If Canada decides to co-defend any action brought against it, and Canada does not agree to a proposed settlement agreed to by the Contractor's insurer and the plaintiff(s) that would result in the settlement or dismissal of the action against Canada, then Canada will be responsible to the Contractor's insurer for any difference between the proposed settlement amount and the amount finally awarded or paid to the plaintiffs (inclusive of costs and interest) on behalf of Canada.

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G5001C (2008-XX-XX) Ship Repairers' Liability Insurance

Remarks:

Use the following clause in contracts for ship repair (including emergencies) and conversion contractual documents. Note that general contractors who are only performing casual and intermittent work on ships (e.g. welders) may not have a specialized policy. Commercial General Liability Insurance clause G2001C, including option (p) of paragraph 2, should be used accordingly.

Whenever the liabilities of Canada and the contractor with respect to the contract are difficult to separate, contracting officers must replace paragraph 2. (a) by the following option:

"Additional Named Insured: Canada is added as an additional named insured, but only with respect to liability arising out of the performance of the Contract."

Contracting officers must choose option (f) in paragraph 2 below when applicable to their contract.

Contracting officers must consult PWGSC Risk Management Advisory Services, at:
ncr.rmias-scgra@tpsgc-pwgsc.gc.ca if the suggested limit of $10,000,000 per accident or occurrence is not considered adequate as alternate limits may be established.

Text:

1. The Contractor must obtain Ship Repairer's Liability Insurance and maintain it in force throughout the duration of the Contract, in an amount usual for a contract of this nature, but for not less than $10,000,000 per accident or occurrence and in the annual aggregate.
2. The Ship Repairer's Liability insurance must include the following:
   
   1. Additional Insured: Canada is added as an additional insured, but only with respect to liability arising out of the Contractor's performance of the Contract. The interest of Canada as additional insured should read as follows: Canada, represented by Public Works and Government Services Canada.
   2. Waiver of Subrogation Rights: Contractor's Insurer to waive all rights of subrogation against Canada as represented by _________ (insert department) and Public Works and Government Services Canada for any and all loss of or damage to the vessel, however caused.
   3. Notice of Cancellation: The Insurer will endeavour to provide the Contracting Authority thirty (30) days written notice of cancellation.
   4. Contractual Liability: The policy must, on a blanket basis or by specific reference to the contract, extend to assumed liabilities with respect to contractual provisions.
   5. Cross Liability/Separation of Insureds: Without increasing the limit of liability, the policy must protect all insured parties to the full extent of coverage provided. Further, the policy must apply to each Insured in the same manner and to the same extent as if a separate policy had been issued to each.

      (Contracting officers must insert the following option, if applicable.)

   6. Litigation Rights: Pursuant to subsection 5(d) of the Department of Justice Act, S.C. 1993, c. J-2, s.1, if a suit is instituted for or against Canada which the Insurer would, but for this clause, have the right to pursue or defend on behalf of Canada as an Additional Named Insured under the insurance policy, the Insurer must promptly contact the Attorney General of Canada to agree on the legal strategies by sending a letter, by registered mail or by courier, with an acknowledgement of receipt.

      For the province of Quebec, send to:
      Director Business Law Directorate,
      Quebec Regional Office (Ottawa),
      Department of Justice,
      284 Wellington Street, Room SAT-6042,
      Ottawa, Ontario, K1A 0H8

      For other provinces and territories, send to:
      Senior General Counsel,
      Civil Litigation Section,
      Department of Justice
      234 Wellington Street, East Tower
      Ottawa, Ontario   K1A 0H8

A copy of the letter must be sent to the Contracting Authority. Canada reserves the right to co-defend any action brought against Canada. All expenses incurred by Canada to co-defend such actions will be at Canada's expense. If Canada decides to co-defend any action brought against it, and Canada does not agree to a proposed settlement agreed to by the Contractor's insurer and the plaintiff(s) that would result in the settlement or dismissal of the action against Canada, then Canada will be responsible to the Contractor's insurer for any difference between the proposed settlement amount and the amount finally awarded or paid to the plaintiffs (inclusive of costs and interest) on behalf of Canada.

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G5003C (2008-XX-XX) Marine Liability Insurance

Remarks:

Use the following clause in contracts whenever the risk exposures include operation of watercraft. This includes contracts involving marine operations such as tugs, barges, fishing vessels, excursion boats and marine contractors.

Note that the Protection & Indemnity Limits will be determined by the Marine Liability Act, S.C. 2001, c. 6.

Whenever the liabilities of Canada and the contractor with respect to the contract are difficult to separate, contracting officers must replace paragraph 3. (a) by the following option:

"Additional Named Insured: Canada is added as an additional named insured, but only with respect to liability arising out of the performance of the Contract."

Contracting officers must choose option (e) in paragraph 3 below when applicable to their contract.

For further assistance, contact PWGSC Risk Management Advisory Services, at: ncr.rmias-scgra@tpsgc-pwgsc.gc.ca.

Text:

1. The Contractor must obtain Protection & Indemnity (P&I) insurance that must include excess collision liability and pollution liability. The insurance must be placed with a member of the International Group of Protection & Indemnity Associations or with a fixed market in an amount of not less than the limits determined by the Marine Liability Act, S.C. 2001, c. 6. Coverage must include crew liability, if it is not covered by Worker's Compensation as detailed in paragraph (2.) below.
2. The Contractor must obtain Worker's Compensation insurance covering all employees engaged in the Work in accordance with the statutory requirements of the Territory or Province or state of nationality, domicile, employment, having jurisdiction over such employees. If the Contractor is assessed any additional levy, extra assessment or super-assessment by a Worker's Compensation Board, as a result of an accident causing injury or death to an employee of the Contractor or subcontractor, or due to unsafe working conditions, then such levy or assessment must be paid by the Contractor at its sole cost.
3. The Protection and Indemnity insurance policy must include the following:
   
   1. Additional Insured: Canada is added as an additional insured, but only with respect to liability arising out of the Contractor's performance of the Contract. The interest of Canada as additional insured should read as follows: Canada, represented by Public Works and Government Services Canada
   2. Waiver of Subrogation Rights: Contractor's Insurer to waive all rights of subrogation against Canada as represented by ____________ (insert department) and Public Works and Government Services Canada for any and all loss of or damage to the watercraft however caused
   3. Notice of Cancellation: The Insurer will endeavour to provide the Contracting Authority thirty (30) days written notice of cancellation.
   4. Cross Liability/Separation of Insureds: Without increasing the limit of liability, the policy must protect all insured parties to the full extent of coverage provided. Further, the policy must apply to each Insured in the same manner and to the same extent as if a separate policy had been issued to each.

      (Contracting officers must insert the following option, if applicable.)

   5. Litigation Rights: Pursuant to subsection 5(d) of the Department of Justice Act, S.C. 1993, c. J-2, s.1, if a suit is instituted for or against Canada which the Insurer would, but for this clause, have the right to pursue or defend on behalf of Canada as an Additional Named Insured under the insurance policy, the Insurer must promptly contact the Attorney General of Canada to agree on the legal strategies by sending a letter, by registered mail or by courier, with an acknowledgement of receipt.

   For the province of Quebec, send to:
   Director Business Law Directorate,
   Quebec Regional Office (Ottawa),
   Department of Justice,
   284 Wellington Street, Room SAT-6042,
   Ottawa, Ontario, K1A 0H8

   For other provinces and territories, send to:
   Senior General Counsel,
   Civil Litigation Section,
   Department of Justice
   234 Wellington Street, East Tower
   Ottawa, Ontario   K1A 0H8

A copy of the letter must be sent to the Contracting Authority. Canada reserves the right to co-defend any action brought against Canada. All expenses incurred by Canada to co-defend such actions will be at Canada's expense. If Canada decides to co-defend any action brought against it, and Canada does not agree to a proposed settlement agreed to by the Contractor's insurer and the plaintiff(s) that would result in the settlement or dismissal of the action against Canada, then Canada will be responsible to the Contractor's insurer for any difference between the proposed settlement amount and the amount finally awarded or paid to the plaintiffs (inclusive of costs and interest) on behalf of Canada.

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G6001C (2008-XX-XX) Vehicles - Long term Lease

Remarks:

Use the following clause in contracts when vehicles are leased by Canada on a long-term basis.

Text:

1. The Contractor must not insure the risks to Canada arising from the use or operation of vehicles leased by Canada on a long-term basis (over 30 days) except where Provincial law makes it mandatory for the Contractor to insure any leased vehicles. Where Provincial law makes it mandatory to insure a leased vehicle, the Contractor must obtain insurance coverage in respect of the vehicle supplied under the lease, and a copy or evidence of such insurance is to be provided to Canada.
2. Canada may decide not to purchase Collision, All Perils or Comprehensive Insurance. The option that must be chosen by Canada when renting a vehicle must depend on the applicable Treasury Board Risk Management Policy.
3. In the event of an accident that is self-insured by Canada (as Lessee), Canada must obtain a written estimate for the repairs and, in consultation with the Contractor (as Lessor), must decide where the repairs are to be performed. If the Contractor decides to have the damage repaired at another place and the cost of said repairs is higher then the estimate obtained by Canada, Canada must only pay the lesser amount. Further, if the Contractor decides that the vehicle is to be repaired at a place other then the place Canada chooses, the Contractor must be responsible to pay transport costs of the vehicle to the alternate location.
4. When a rental vehicle is in a disabling accident, all rental charges must cease on said vehicle.

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G6002C (2008-XX-XX) Garage Automobile Liability Insurance

Remarks:

Use the following clause in contracts involving selling, repairing or servicing automobiles.

Whenever the liabilities of Canada and the contractor with respect to the contract are difficult to separate, contracting officers must replace paragraph 2.(a) by the following option:

"Additional Named Insured: Canada is added as an additional named insured, but only with respect to liability arising out of the performance of the Contract."

Contracting officers must choose option (e) in paragraph 2 below when applicable to their contract.

For further assistance, contact PWGSC Risk Management Advisory Services, at: ncr.rmias-scgra@tpsgc-pwgsc.gc.ca.

Text:

1. The Contractor must obtain Garage Automobile Liability Insurance, and maintain it in force throughout the duration of the Contract, in an amount usual for a contract of this nature, but for not less than $2,000,000 per accident or occurrence and in the annual aggregate.
2. The Garage Automobile Liability policy must include the following:
   
   1. Third Party Liability - $2,000,000 Minimum Limit per Accident or Occurrence
   2. Legal Liability for damage to a Customer's Automobile while in the care, custody or control of the Insured including Collision or Upset and Comprehensive Damage (including open lot theft).
   3. Additional Insured: Canada is added as an additional insured, but only with respect to liability arising out of the Contractor's performance of the Contract. The interest of Canada as additional insured should read as follows: Canada, represented by Public Works and Government Services Canada.
   4. Notice of Cancellation: The Insurer will endeavour to provide the Contracting Authority thirty (30) days written notice of cancellation.

      (Contracting officers must insert the following option, if applicable.)

   5. Litigation Rights: Pursuant to subsection 5(d) of the Department of Justice Act, S.C. 1993, c. J-2, s.1, if a suit is instituted for or against Canada which the Insurer would, but for this clause, have the right to pursue or defend on behalf of Canada as an Additional Named Insured under the insurance policy, the Insurer must promptly contact the Attorney General of Canada to agree on the legal strategies by sending a letter, by registered mail or by courier, with an acknowledgement of receipt.

      For the province of Quebec, send to:
      Director Business Law Directorate,
      Quebec Regional Office (Ottawa),
      Department of Justice,
      284 Wellington Street, Room SAT-6042,
      Ottawa, Ontario, K1A 0H8

      For other provinces and territories, send to:
      Senior General Counsel,
      Civil Litigation Section,
      Department of Justice
      234 Wellington Street, East Tower
      Ottawa, Ontario   K1A 0H8

A copy of the letter must be sent to the Contracting Authority. Canada reserves the right to co-defend any action brought against Canada. All expenses incurred by Canada to co-defend such actions will be at Canada's expense. If Canada decides to co-defend any action brought against it, and Canada does not agree to a proposed settlement agreed to by the Contractor's insurer and the plaintiff(s) that would result in the settlement or dismissal of the action against Canada, then Canada will be responsible to the Contractor's insurer for any difference between the proposed settlement amount and the amount finally awarded or paid to the plaintiffs (inclusive of costs and interest) on behalf of Canada.

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G6005C (2008-XX-XX) Short Term Lease

Remarks:

Use the following clause in contracts involving short-term automobile leases (fewer than 31 days).

This clause is used to ensure that any liability claim arising from the use of the rented vehicle by federal government employees traveling on official government business, be resolved by Canada rather than the employees own Automobile Liability Insurance policy. (Bill 18, Ontario - changes to the Highway Traffic Act).

For further assistance, contact PWGSC Risk Management Advisory Services, at: ncr.rmias-scgra@tpsgc-pwgsc.gc.ca.

Text:

For vehicles rented by federal government employees, while travelling on official government business, for a period of less than 31 days, the Contractor must insert as lessee, Canada, as presented by ___________ (insert the employee's department).