(a) 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 furnish to the town certificates of insurance, approved by the town, for all types of insurance required under this section. Failure to furnish said certificates of insurance in a timely manner shall constitute a violation of this chapter.
(b) Certificates of insurance obtained by the grantee in compliance with this section shall be filed and maintained with the town clerk during the term of the franchise.
(c) Neither the provisions of this section nor any damages recovered by the town hereunder shall be construed to or limit the liability of the grantee under any franchise issued hereunder for damages.
(d) All insurance policies maintained pursuant to this chapter or the franchise shall contain the following, or a comparable, endorsement:
It is hereby understood and agreed that this insurance policy may not be cancelled by the insurance company nor the intention not to renew be stated by the insurance company until 30 days after receipt by the town manager, by registered mail, of a written notice of such intention to cancel or not to renew.
(e) All contractual liability insurance policies maintained pursuant to this chapter or the franchise shall include the provision of the following hold harmless clause:
The grantee agrees to indemnify, save harmless and defend the town, 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 injury 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 this agreement and performed or caused to be performed by grantee. The foregoing indemnity shall apply except if such injury, death or damage is caused by the negligence or other fault of the town, its agents, servants, or employees or any other person indemnified hereunder.
(f) All insurance policies provided under the provisions of the franchise shall be written by companies authorized to do business in the state, and approved by the state board of insurance.
(g) At any time during the term of the franchise, the town may request and the grantee shall comply with such request, to name the town as an additional named insured for all insurance policies written under the provisions of this chapter or the franchise.
(h) To offset the effects of inflation and to reflect changing liability limits, all of the coverages, limits, and amounts of the insurance provided for herein are subject to reasonable CPI increases at the end of every three-year period of the franchise, applicable to the next three-year period, upon the determination of the town; provided, however, in no event shall the town require amounts in excess of what is customarily provided by cable system operators in North Carolina.
(i) General liability insurance. The grantee shall maintain, and by its acceptance of any franchise granted hereunder specifically agrees that it will maintain throughout the term of the franchise, general liability insurance insuring the grantee in the minimum of:
(1) Five hundred thousand dollars for property damage per occurrence;
(2) One million dollars for property damage aggregate;
(3) One million dollars for personal bodily injury to any one person; and
(4) Two million dollars bodily injury aggregate per single accident or occurrence.
(j) Such general liability insurance must include coverage for all of the following: comprehensive form, premises-operations, explosion and collapse hazard, underground hazard, products/completed operations hazard, contractual insurance, broad form property damage, and personal injury.
(k) Automobile liability insurance. The grantee shall maintain, and by its acceptance of any franchise granted hereunder specifically agrees that it will maintain throughout the term of the franchise, automobile liability insurance for owned, nonowned, or rented vehicles in the minimum amount of:
(1) One million dollars (for bodily injury and consequent death per occurrence.
(2) One million dollars for bodily injury and consequent death to any one person.
(3) Five hundred thousand dollars for property damage per occurrence.
(l) Worker's compensation and employer's liability insurance. The grantee shall maintain and by its acceptance of any franchise granted hereunder specifically agrees that it will maintain throughout the term of the franchise, worker's compensation and employer's liability, valid in the state, in the minimum amount of:
(1) Statutory limit for worker's compensation.
(2) One hundred thousand dollars for employer's liability.
(Ord. No. 04-009, § 6-31, 8-26-2004)