On or before commencement of any franchise operations, the franchisee shall obtain or provide satisfactory evidence of having policies of comprehensive general liability, automobile liability, general contractor’s pollution legal liability and worker’s compensation insurance from companies admitted to transact business in the State of California by the Insurance Commission of California, and with a Best’s rating of A:VIII or better.
A. The policy of commercial general and automobile liability insurance shall:
1. Be issued to franchisee and name the city, and its officers, agents, and employees, as additional insureds;
2. Defend and indemnify the insureds against all liability for personal injury, bodily injury, wrongful death and property damage arising from activities conducted pursuant to the franchise by providing coverage therefor, including but not limited to, coverage for acts or omissions of franchisee and the agents, servants and employees thereof, committed in the conduct of franchise operations;
3. Provide combined single limit liability insurance in the amount of six million dollars ($6,000,000);
4. Be noncancelable without thirty (30) days’ prior written notice thereof provided to the City Clerk.
B. The franchisee’s pollution legal liability policy shall:
1. Be issued to the franchisee and name the city, and its officers, agents, and employees, as additional insureds;
2. Defend and indemnify the insureds against all liability for personal injury, bodily injury, wrongful death and property damage (including but not limited to damages and costs relating to site remediation) caused by pollution conditions, including, but not limited to, any release or environmental condition, arising from operations performed by or on behalf of the franchisee;
3. Provide a combined single limit in the amount of ten million dollars ($10,000,000);
4. Provide coverage on an occurrence basis, and not on a claims made basis;
5. Provide coverage for damage to the owned premises of any insured;
6. Be noncancelable without thirty (30) days’ prior written notice thereof provided to the City Clerk.
C. The policy of workers compensation insurance shall:
1. Have been previously approved as to substance and form by the California Insurance Commissioner;
2. Cover all employees of franchisee who in the course and scope of their employment are to conduct or do work pursuant to the franchise operations;
3. Provide for every benefit and payment presently or hereinafter conferred by Division 4 of the Cal. Labor Code upon an injured employee, including the vocational rehabilitation and death benefits;
4. Be noncancelable without thirty (30) days’ prior written notice thereof provided directed to the City Clerk.
D. The franchisee shall file with the City Clerk certified copies of such policies of insurance for each of the required policies with required endorsements executed by the company issuing the policy, certifying that the policy is in force and providing the following information with respect to the policy:
1. The policy number;
2. The date upon which the policy will become effective and the date upon which it will expire;
3. The names of the named insured and any additional insured;
4. The subject of the insurance;
5. The type of coverage provided by the insurance;
6. The amount of limit of coverage provided by the insurance;
7. A description of all endorsements that form a part of the policy.
E. As an alternative to commercial insurance from franchisee, the City Council may approve, in its sole discretion, and based upon satisfactory evidence of sufficient financial responsibility being provided by franchisee, a program of self-insurance or self-insured retention, meeting the following requirements:
1. The city shall be provided at least the same defense of suits and payments of claims as would be provided by the first dollar of commercial insurance.
2. A formal declaration to be self-insured for the type and amount of coverage indicated in this chapter. This can be in the form of a corporate resolution or a certified statement from an authorized representative of the franchisee.
3. The exact wording of the program of self-insurance shall be approved by the City Attorney. The City Council may, in its sole discretion and upon sixty (60) days’ written notice to the franchisee, rescind its approval of the program of self-insurance. In such case, the franchisee shall provide the insurance otherwise required by this section before expiration of the sixty (60) day notice period.
F. The franchisee shall not commence operations until franchisee has complied with the aforementioned provisions of this chapter. The franchisee shall immediately cease operations if the franchisee fails to maintain the policies in full force and effect.
(Ord. 1152, passed 5-17-11)