Common use of Fire Insurance Clause in Contracts

Fire Insurance. The Contractor shall at all times be liable for and shall indemnify the Agency in respect of all damage occasioned by fire and shall maintain at his expense fire insurance upon the entire structure on which the work of this Contract is to be done to one hundred per centum (100%) of the insurable value thereof unless the Director of Works decides otherwise, including items of labour and materials connected therewith, whether in or adjacent to the Works insured, and materials in place or to be used as part of the Works . The Contractor shall provide said fire insurance in the joint names of himself and the Agency. Any loss sustained is to be made adjustable and payable to the Agency. This insurance will not cover any tools, equipment or plant owned by the Contractor, his mechanics or sub-contractors since the provision for this insurance is designed for the sole protection of the Agency and its property. The fire insurance must also cover the activities of any sub-contractors of the Contractor, and those deemed to be sub-contractors. If the Contractor fails or refuses to provide the aforesaid insurance, the Agency may, at its discretion, after notice as provided for in Article 19, terminate this Contract and/or utilize the Security Deposit as well as any sums due to the Contractor, and procure the insurance on behalf of the Contractor without prejudice to any other rights that it may have in law or equity.