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Home > Frequently Asked Questions > Insurance Requirements for a Water Project Loan  

Frequently Asked Questions: Insurance Requirements for a Water Project Loan

Title

Insurance Requirements for a Water Project Loan 

Program Area

Loans & Grants 

Specific Program

Water Project Loan Program 

CWCB Section

Finance 

Question

If I get a loan from the CWCB, what types of insurance will I be required to carry?

Answer

The State of Colorado requires all borrowers to have two types of insurance:

  1. Liability Insurance (Duration of Loan) The borrower must maintain commercial general liability insurance, with a company that is satisfactory to the CWCB, with minimum limits of $1,000,000 combined single limit for each occurrence and $2,000,000 general aggregate, including products/completed operations and personal injury.

    [Note: Governmental entities must comply with the minimum insurance requirements of the Colorado Governmental Immunity Act, 24-10-101 C.R.S., et seq., as amended, and provide proof of such insurance.]
  2. Liability Insurance (During Construction) During construction of the project, the borrower must require the construction firm(s) and any subcontractors to maintain the following insurance coverage during the term of their contracts for the construction of the project. No payments can be made to the borrower unless all insurance certificates are current.
    • Builder's risk insurance for construction in progress for all perils of loss including fire, wind, hail, and vandalism in an amount equal to the completed value of the project. Worker's compensation and employer's liability insurance in the required statutory amounts.
    • Automobile liability insurance that includes coverage for all owned, non-owned and hired vehicles with minimum limits of $1,000,000 combined single limit for bodily injury and property damage.
    • Commercial general liability insurance with minimum limits of $1,000,000 combined single limit for each occurrence and $2,000,000 general aggregate. This insurance coverage shall include products/completed operations and bodily injury/property damage.
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Created at 6/30/2010 2:47 PM  by System Account 
Last modified at 6/30/2010 2:47 PM  by System Account