Lessee shall comply in all respects with the following insurance requirements in order to lease, and continue leasing, any of the Equipment:
(1) Insurance Certificate. With or without demand but prior to delivery of any of the Equipment, Lessee shall furnish Lessor with a Certificate of Insurance, signed by an authorized representative or agent of an insurance carrier admitted in California, with an A.M. Best rating of A or higher, setting forth all of the required coverages set forth below. All such insurance shall be in full effect at all times from Delivery to Return, and shall be obtained and maintained by Lessee at Lessee’s sole cost and expense. Such required policies include (3) Comprehensive General Liability Insurance (CGL); (4) Personal Property Insurance; (5) Business Auto Coverage; and (6) Workers’ Compensation/Employers Liability coverage. The requirements for and minimum limits of such policies are set forth below.
(2) Subrogation Waiver: All of Lessee’s insurance policies hereunder shall contain an express waiver of subrogation against Lessor.
(3) Liability Insurance:
(A) Commercial General Liability Insurance (GCL): Commercial general liability insurance shall include independent contractor and contractual liability coverage, specifically referring to this Agreement and to the hold-harmless terms herein. Lessor shall be named an additional insured. Such insurance shall include broad-form contractual liability, personal injury liability, completed operations, and products liability, with minimum $2,000,000 general aggregate limits, minimum $1,000,000 personal injury limits (per-occurrence), and minimum $1,000,000 advertising injury limits (per-occurrence). Any such policy must expressly state that it is primary coverage as to all insureds, and that their policy limits must be paid out prior to any obligation arising under any other insurance policy, including those maintained by Lessor.
(B) Personal Property Insurance: Property insurance shall cover “full replacement cost” and including an amount sufficient to cover Lessor’s rental charges until the Equipment is repaired or replace. Lessor shall be named an additional insured and loss payee on each such policy or policies.
(C) Business Auto Insurance: Business automobile insurance shall provide minimum comprehensive/collision coverage of $1,000,000.00 combined single limits and actual cash value. The maximum deductible shall be $1,000 for physical damage for comprehensive/collision damage or loss. Such coverage shall specifically include loading and unloading and all owned, rented, leased, hired, and co-owned vehicles. Lessor shall be named as an additional insured on the liability coverage and as an express loss payee all physical damage coverage.
(D) Workers Compensation: Workers’ compensation/Employers Liability coverage shall provide minimum $1,000,000 limits.
(4) Notice of Cancellation: Lessee shall give Lessor reasonable but in no event less than thirty (30) days’ written notice before any cancellation, revocation or change to any insurance policy(ies) required under this paragraph.
(5) Lessee’s Failure to Obtain or Maintain Required Insurance Policies: Lessee’s failure to obtain or maintain any required insurance coverage under this paragraph shall constitute a default under this Agreement. At Lessor’s sole election, Lessor may, but shall not be required to, obtain such coverage. In such circumstance, Lessee shall immediately reimburse Lessor for the costs of obtaining such coverage, including an administrative fee, in addition to any remedies which Lessor may have.