(A) No ambulance franchise shall be granted under this chapter, nor shall such franchise be valid after granted, unless the applicant or franchisee has at all times in force and effect liability insurance coverage issued by an insurance company licensed to transact business in this state which meets the criteria set out below.
(B) Liability insurance requirements.
(1) The franchisee shall procure and maintain liability insurance against claims for injuries to persons or damages to property for the duration of the franchise which may arise from or in connection with the performance of services hereunder by the franchisee, their agents, representatives, or subcontractors.
(a) Commercial general liability insurance. The franchisee shall maintain occurrence version commercial general liability insurance or equivalent form with a limit of not less than $1,000,000 each occurrence. If such insurance contains a general aggregate limit, it shall be no less than two times the occurrence limit. Such insurance shall:
1. Include the county, its officials, officers, and employees as additional insureds with respect to performance of the services. The coverage shall contain no special limitation on the scope of protection afforded to the above listed additional insured. Additional insured should read Davidson County, a body politic and corporate of the State of North Carolina, Post Office Box 1067, Lexington, North Carolina 27293-1067.
2. Be primary with respect to any insurance or self-insured retention programs covering Davidson County and its officials, officers and employees. The county's insurance shall be in excess of and not contribute to the insurance required to be maintained by the franchisee.
(b) Business automobile liability insurance. The franchisee shall maintain business automobile liability insurance or equivalent form with a limit of not less than $1,000,000 each accident. Such insurance shall include coverage for owned, hired, and non-owned automobiles.
(c) Workers' compensation and employers' liability insurance. The franchisee shall maintain workers' compensation insurance with North Carolina statutory limits and employers' liability insurance with limits of not less than $1,000,000 each accident.
(d) Medical malpractice liability insurance. The franchisee shall maintain in force for the duration of this contract professional liability or errors and omissions liability insurance or equivalent form with a limit of not less than $1,000,000 each occurrence. If coverage required by this section is written on a claims-made basis, the franchisee warrants that any retroactive date applicable to coverage under the policy precedes the effective date of this franchise and that continuous coverage will be maintained or an extended discovery period will be exercised for a period of three years beginning from the time that services pursuant to this franchise agreement are completed.
(e) Excess liability insurance. The franchisee shall maintain an excess liability insurance policy in the amount of $5,000,000. This excess liability insurance policy shall be excess over the general liability, automobile liability, workers' compensation, and medical malpractice liability insurance coverage.
(2) The franchisee shall:
(a) Prior to commencement of services, furnish the county with properly executed certificates of insurance which shall clearly evidence all insurance required in this section and provide that such insurance shall not be cancelled, allowed to expire, or be materially reduced in coverage except on 30 days prior written notice to the county.
(b) Provide certified copies of endorsements and policies, if requested by the county, in lieu of or in addition to certificates of insurance.
(c) Replace certificates, policies, and endorsements for any such insurance expiring prior to completion of the services.
(d) Maintain such insurance from the time services commence until services are completed.
(e) Place such insurance with insurers authorized to do business in North Carolina and having A.M. Best Company ratings of not less than A:VII. Any alternatives to this requirement shall require written approval of the county's Risk Manager.
(C) The franchisee understands and acknowledges that these liability insurance coverage requirements are minimums and that they do not restrict or limit the hold harmless provisions of this agreement.
(D) Each liability insurance policy must list the county as a party to be notified by the insurance company in the event that the franchisee's insurance is revoked, withdrawn, cancelled, or allowed to lapse, or in the event that there is any change whatsoever in the above-described coverage amounts.
(E) Each liability insurance policy must authorize the insurance company to release any information regarding said insurance policy and the status of said policy to the county, and specifically Davidson County Emergency Medical Services, at any time an inquiry is made.
(F) Each franchisee shall operate as an independent contractor, and the county shall not be responsible for any of the franchisee's acts or omissions while providing services under this chapter. Each franchisee shall hold the county harmless from and against any and all claims, expenses (including attorney fees), costs or liability for negligent or intentional acts or omissions, including willful or criminal conduct, of the franchisee, its employees, agents or other representatives while providing services under this chapter.
(Ord. passed 10-28-14; Ord. passed 2-27-18; Ord. passed 11-12-19; Ord. passed 2-27-23)