Divison of Construction

Insurance Pre-Approval Program

PRE-APPROVAL APPLICATION PACKAGES

If you are interested in pre-approving your insurance for Caltrans’ construction contracts, please download one of the following application packages, complete the form and return as instructed:

  1. Application package for projects advertised before October 19, 2009. *
  2. Application package for projects advertised after October 19, 2009. * **NEW**
 

OVERVIEW OF INSURANCE PREAPPROVAL

Caltrans’ Insurance Pre-Approval Program allows a contractor, prior to bidding on a Caltrans’ construction contract, or during an ongoing contract to submit its insurance documents to the Caltrans’ Office of Risk Management (ORM) for pre-approval. If pre-approved, ORM issues the contractor a Certificate of Pre-Approved Insurance for the policy period and level of construction work the certificate is valid for.

Beginning in the fall of 2006, the successful bidder for every Caltrans’ construction contract is required by specifications to indemnify the State of California, and if applicable, other parties, and submit proof of the contractor’s liability insurance together with the executed contract before the contract may be approved. The insurance pre-approval program is meant to reduce delays in contract execution, and lessen paperwork administrative burden on Caltrans and contractors who are awarded more than one contract and need to submit the same insurance documents more than once in the same policy period.

When a pre-approved contractor is awarded a construction contract, the contractor may simply enclose the pre-approved insurance certificate, as proof of insurance along with the executed contract documents sent to the Office of Office Engineer.

Please Note! (New Insurance Table):Beginning with contracts advertised after October 19, 2009, a contract’s special provisions may contain a revised insurance table in which the previous “Total Bid” contract range of (>$1,000,000 ≤ $5,000,000) has changed to (>$1,000,000 ≤ $10,000,000.) This change further lowers insurance as a barrier to small business enterprise contractors by allowing contractors to now bid on contracts up to $10,000,000 using the same lower level of insurance that previously covered only up to $5,000,000.

Contractors may be pre-approved for insurance in one of two ways:

  1. Upon Contract Award: When the successful bidder submits the complete insurance documents required under Section 3-1.05, “Insurance Policies,” of the Standard Specifications to the Office Engineer (OE) as instructed in the award letter, OE forwards the insurance documents to the Office of Risk Management (ORM) in the Division of Construction for review and approval. If the contractor’s commercial general liability (CGL) policy contains a blanket endorsement making the policy applicable to all work locations the contractor has under contract with Caltrans, then ORM will issue the contractor a certificate of pre-approved insurance. The certificate is good for all Caltrans’ construction contracts in the same “total bid” range under the insurance table as the awarded contract, and until one of the required insurance policies expires.
  2. Prior to bidding on a Caltrans construction contract: A contractor may request insurance pre-approval by completing and submitting the application form in one of the application packages above with complete copies of the contractor’s insurance documents required under Section 3-1.05, “Insurance Policies,” of the Standard Specifications (included in packages). Note: The contractor’s commercial general liability (CGL) policy MUST contain a blanket endorsement making the policy cover any work location by the contractor under contract with Caltrans. Upon review and approval, ORM will issue a certificate of pre-approved insurance for the level of contract work requested. When a contractor with the appropriate level of pre-approved insurance is awarded a construction contract, in-lieu of submitting copies of all insurance documents, the contractor only needs to enclose the one page pre-approved insurance certificate along with the executed contract documents sent to the Office Engineer as instructed in the contract award letter.