What occurs if the required insurance lapses during the term of the agreement?

If the required insurance lapses during the term of the agreement, payments will not be processed until coverage is reinstated. This is essential because maintaining adequate insurance coverage is a critical component of managing risk in contractual agreements. If the contractor's insurance is not valid or has lapsed, the city is exposed to potential liabilities, and thus, it must ensure that only those contractors with proper coverage are eligible for payment. This promotes accountability and protects both the contractor and the city from financial and legal repercussions that could arise from uninsured work.