§ 19-331. Insurance

(a) Franchisee shall obtain and maintain at all times during the term of the franchise comprehensive general liability insurance and comprehensive automotive liability insurance protecting franchisee in an amount of not less than one million dollars ($1,000,000.00) per occurrence, combined single limit, including bodily injury and property damage and not less than one million dollars ($1,000,000.00) aggregate for each personal injury liability, products-completed operations and each accident. Such insurance shall name the city, its council members, officers, employees, agents and contractors as additional insured as respects to any liability arising out of franchisee's performance of work under the franchise, or suitable additional insured endorsement acceptable to the city attorney. Coverage shall be provided in accordance with the limits specified herein. Claims-made policies are not acceptable. When an umbrella or excess coverage is in effect, coverage shall be provided in following form. Such insurance shall not be canceled or materially altered to reduce coverage until the city has received at least thirty (30) days' advance written notice of such cancellation or change. Franchisee shall be responsible for notifying the city of such change or cancellation.

(b) Franchisee shall file the required original certificate(s) of insurance with endorsements with the city subject to the city attorney's prior approval which shall clearly state:

(1) Policy number; name of insurance company; name, address and telephone number of the agent or authorized representative; name, address and telephone number of insured; project name and address; policy expiration date; and specific coverage amounts;

(2) That thirty (30) days prior notice of cancellation is unqualified as to the acceptance of liability for failure to notify the city; and

(3) That franchisee's insurance is primary as respects to any other valid or collectible insurance that the city may possess, including any self-insurance retentions the city may have and any other insurance the city does possess shall be considered excess insurance only and shall not be required to contribute with this insurance.

(c) Franchisee shall comply with all applicable provisions of the Workers' Compensation Insurance and Safety Acts of the State of California, the applicable provisions of Divisions 4 and 5 of the California Labor Code and all amendments thereto; and all similar state or federal acts or laws applicable; and shall indemnify and hold harmless city from and against all claims, demands, payments, suits, actions, proceedings and judgments of every nature and description, including attorney's fees and costs presented, brought or recovered against city, for or on account of any liability or failure to obtain workers' compensation insurance. Franchisee shall furnish evidence of workers' compensation and employer's liability insurance with limits of at least statutory coverage to city in such form as is acceptable to the city attorney.

(d) Any insurance provider of franchisee shall be admitted and authorized to do business in California and shall be rated at least A:X in A.M. Best & Company's Insurance Guide. Insurance certificates issued by non-admitted insurance companies are not acceptable.

(e) Prior to the execution of the franchise, any deductibles or self-insured retentions must be stated on the certificate(s) of insurance which shall be sent to and approved by the city attorney. "Cross-liability," "severability of interest" or "separation of insured" clauses shall be made a part of the comprehensive general liability and comprehensive automobile liability policies.

(Ord. No. 96-16, § 2, 1-6-97)