(a) In advance of taking over any portion of project, authority must obtain bids on owners', landlords', and tenants' public liability insurance, which coverage should be written for a term of three years, and shall include coverage for all elevators, if any, located in project. Comprehensive form of policy is preferable.

(b) Policy should cover with limits of $100/300,000 for bodily injury.

(c) Policy shall also include endorsement eliminating “caused by accident” phrase from insuring clause of policy.

(d) Policy must include coverage by special endorsement for any communal activity or recreational facility offered by project, either on project site or elsewhere. This coverage should be included when facility is under supervision and control of authority, either on or off site of project. In event such facilities do not exist at inception of policy term, but are created at a later date, endorsement must be obtained at time such facility is installed. Where communal activity is sponsored or conducted by outside agency or individual, on or off site, there should be an agreement or lease to specify purpose and duration of activity, together with a requirement that said agency or individual will provide adequate insurance protection to cover their liability, which may develop as a result of their activities.