§ 34-8. Insurance and indemnification.

(a)

Insurance.

(1)

Requirements. Prior to commencement of construction, but in no event later than 60 days after the effective date of the franchise and thereafter continuously throughout the duration of the franchise and any extensions or renewals thereof, the grantee shall meet the insurance requirements of the city as established by the city's chief financial officer. The city shall reserve the right to inquire periodically into the adequacy of any grantee's insurance coverage and, from time to time, the city may require, and the grantee shall furnish, reasonable changes in such policies to reflect changing liability limits and/or to compensate for inflation.

(2)

No liability limit. None of the provisions of this chapter or any insurance policy required herein, or any damages recovered by the city hereunder, shall be construed to excuse the faithful performance by or limit the liability of grantee under this chapter or the franchise for damages either to the limits of such policies or otherwise.

(3)

Financial security requirements. Any and all companies providing insurance required by this chapter must meet certain minimum financial security requirements set forth below. These requirements conform to the ratings published by A.M. Best & Co. in the current Best's Key Rating Guide - Property Casualty. The ratings for each company must be indicated on the Acord Certificate of Insurance Form.

a.

Best's Rating not less than B and current.

b.

Best's Financial Size Category not less than Class XIII.

c.

Companies must be authorized to conduct and transact insurance contracts by the Insurance Commissioner, State of Georgia; furthermore, all bid, performance and payment bonds must be a U.S. Treasury Circular 570 listed company.

(4)

Additional insured. The city shall be covered and named as an additional insured for all insurance policies written under the provisions of this chapter or the franchise. Confirmation of this shall appear on all said policies and certificates of insurance.

(5)

Commercial general liability insurance. The grantee shall purchase, and will maintain throughout the term of the franchise, general liability insurance insuring the grantee in the minimum of:

a.

$1,000,000.00 for property damages per occurrence;

b.

$2,000,000.00 for property damage aggregate;

c.

$5,000,000.00 for personal bodily injury or death to any one person; and

d.

$10,000,000.00 bodily injury or death aggregate per single accident or occurrence,

(6)

Policy inclusions. Such general liability insurance must include coverage for all of the following: commercial form, premises-operations, explosion and collapse hazard, underground hazard, products/completed operations hazard, contractual insurance, broad form property damage, and personal injury.

(7)

Automobile liability insurance. The grantee shall purchase, and will maintain throughout the term of the franchise, automobile liability insurance for owned, non-owned, hired, or leased vehicles in the minimum amount of:

a.

$1,000,000.00 for bodily injury and consequent death per occurrence;

b.

$1,000,000.00 for bodily injury and consequent death to any one person; and

c.

$500,000.00 for property damage per occurrence.

(8)

Workers' Compensation and Employer's Liability Insurance. The grantee shall purchase and will maintain throughout the term of the franchise, worker's compensation and employer's liability, valid in the state, in the minimum amount of:

a.

Statutory limit for Workers' Compensation;

b.

$100,000.00 for bodily injury by accident/disease, each accident;

c.

$100,000.00 for bodily injury by accident/disease, each employee; and

d.

$500,000.00 for bodily injury by accident/disease, each policy limit.

(9)

Subcontractors. If grantee employs any subcontractor who does not obtain insurance in his or her name, then the grantee will either cover such subcontractor by obtaining endorsements to be attached to its policies or require the subcontractor to obtain the necessary insurance coverage. In no event will the subcontractor be allowed to commence work on the project covered by the franchise unless and until certificates of insurance for the necessary types of insurance are provided.

(10)

Self-insurance. Grantee shall be allowed to provide in above-referenced types and amounts of insurance through self-insurance. The city shall have the right to request reasonable information to assure itself that grantee has the necessary financial resources to self-insure. The city shall not unreasonably withhold approval from grantee to self-insure.

(b)

Indemnification. The grantee agrees to indemnify, save harmless and defend the city, its agents, servants, and employees, and each of them against and hold it and them harmless from any and all lawsuits, claims, demands, liabilities, losses and expenses, including court costs and reasonable attorney's fees for or on account of any injury or losses to any person, or any death at any time resulting from such injury, or any damage to any property, which may arise or which may be alleged to-have arisen out of or in connection with the work covered by the franchise and performed or caused to be performed by the grantee; provided, however, the grantee shall not be liable for the negligent acts of the city and its employees. The grantee shall also pay for the cost to the city of defending in any court any action brought against the city arising out of the operations of the grantee hereunder. The grantee shall carry insurance in the above-described amounts to protect the parties hereto from and against all claims, demands, actions, judgments, costs, expenses and liabilities which may arise or result directly or indirectly from or by reason of such loss, injury or damage. All insurance required shall be written with a company or companies approved by the city and shall remain in full force and effect for the entire term of the franchise. Grantee shall provide to the city certificates of insurance evidencing that the insurance required herein is in full force and effect.

(Ord. No. 2009-51.1(94-O-1777), § 8.0, 11-28-94)