A. Coverage Required: Before a permit is issued, the applicant shall furnish to the town evidence that such applicant has a comprehensive general liability and property damage policy that includes contractual liability coverage endorsed with the following limits and provisions, or with such alternative limits and provisions as may be approved by the town:
1. A minimum of one million dollars ($1,000,000.00) combined single limit per occurrence for bodily injury, personal injury and property damage, and not less than one million dollars ($1,000,000.00) in the aggregate. The general aggregate limit shall apply separately to the permit, or the general aggregate limit shall be two (2) times the required occurrence limit. The coverage shall be in the nature of broad form commercial general liability coverage. The town attorney may increase or decrease minimum insurance limits, depending on the potential liability of any project.
2. All policies shall include the town, its employees, officers, officials, agents, volunteers and assigns, as insureds. Any reference to the "town" shall include the town, its employees, officers, officials, agents, volunteers and assigns.
3. The coverage shall be primary insurance as respects the town, its employees, officers, officials, agents, volunteers and assigns. Any insurance or self-insurance maintained by the town, its employees, officers, officials, agents, volunteers and assigns shall be in excess of the permittee's insurance and shall not contribute to or with it.
4. Any failure to comply with reporting provisions of the policy shall not affect coverage provided to the town, its employees, officers, officials, agents, volunteers and assigns.
5. Coverage shall state that the permittee's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability.
6. Underwriters shall have no right of recovery or subrogation against the town, it being the intent of the parties that the insurance policy so affected shall protect both parties and be primary coverage for any and all losses covered by the described insurance.
7. The insurance companies issuing the policy or policies shall have no recourse against the town for payment of any premiums due or for any assessments under any form of any policy.
8. Each insurance policy shall be endorsed to state that the coverage shall not be suspended, voided, canceled or reduced in coverage or in limits, except after thirty (30) days' prior written notice by certified mail, return receipt requested sent to the town.
9. Each policy shall be endorsed to indemnify, save harmless and defend the town and its officers and employees against any claim or loss, damage or expense sustained on account of damages to persons or property occurring by reason of permit work done by the permittee, his/her subcontractor or agent, whether or not the work has been completed and whether or not the right of way has been opened to public travel.
10. Each policy shall be endorsed to indemnify, hold harmless and defend the town, and its officers and employees against any claim or loss, damage or expense sustained by any person occurring by reason of doing any work pursuant to the permit including, but not limited to, falling objects or failure to maintain proper barricades and/or lights as required from the time work begins until the work is completed and right of way is opened for public use.
B. Carrier Rating: Insurance is to be placed with insurers with an AM Best rating of no less than an A carrier, with a rating of "7" or higher.
C. Certificates And Endorsements: The permittee shall furnish the town with certificates of insurance and original endorsements affecting coverage required by the permit. The certificates and endorsements for each insurance policy are to be signed by a person authorized by that insurer to bind coverage on its behalf. The town expressly reserves the right to require complete, certified copies of all required insurance policies at any time. Consequently, the permittee shall be prepared to provide such copies prior to the issuance of the permit.
D. Unsatisfactory Policies: If any of the required policies are, or at any time become, unsatisfactory to the town as to form or substance, or if a company issuing any such policy is, or at any time becomes, unsatisfactory to the town, the permittee shall promptly obtain a new policy, submit the same to the town for approval, and thereafter submit verification of coverage as required by the town. Upon failure to furnish, deliver and maintain such insurance as provided herein, the town may declare the permit to be in default and pursue any and all remedies the town may have at law or in equity, including those actions outlined in this chapter.
E. Subcontractors Included: The permittee shall include all subcontractors as insured under its policies or shall furnish separate certificates and endorsements for each subcontractor. All coverages for subcontractors shall be subject to all of the requirements stated herein.
F. Deductibles And Retentions: Any deductibles or self- insured retentions shall be declared to and approved by the town. At the option of the town, either the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the town, its employees, officers, officials, agents, volunteers or assigns, or the permittee shall procure a bond, in a form acceptable to the town, guaranteeing payment of losses and related investigations, claim administration and defense expenses.
G. Homeowner's Insurance: A property owner performing work adjacent to his/her residence may submit proof of a homeowner's insurance policy in lieu of the insurance requirements of this section.
H. Relief Of Obligation: A provider may be relieved of the obligation of submitting certificates of insurance under the following circumstances:
1. If such company shall submit satisfactory evidence in advance that:
a. It is insured in the amounts set forth in this chapter, or has complied with state requirements to become self-insured. Public utilities may submit annually evidence of insurance coverage in lieu of individual submissions for each permit; and
b. Said coverage provides to the town the same scope of coverage that would otherwise be provided by a separate policy as required by this chapter; or
2. The work to be performed under the permit issued to the applicant is to be performed by the town, in which case insurance or other risk transfer issues shall be negotiated between the town and the applicant by separate agreement. (Ord. 10-02, 2-2-2010)