(A) Agencies and network providers. Each agency or network provider applying for a permit shall obtain, maintain, and provide proof of the each of the following types of insurance and coverage limits. These insurance policies shall be underwritten by insurance companies with an A.M. Best Rating of A-VI or better.
(1) Commercial general liability on an occurrence form with minimum limits of $5,000,000 per occurrence and $10,000,000 aggregate. This coverage shall include the following:
(a) Products/completed operations to be maintained for one year.
(b) Personal and advertising injury.
(c) Owners’ and contractors' protective liability.
(d) Explosion, collapse, or underground (XCU) hazards.
(2) Automobile liability coverage with a minimum policy limit of $1,000,000 combined single limit. This coverage shall include all owned, hired and non-owned automobiles.
(3) Workers' compensation and employers' liability coverage. Statutory coverage limits for Coverage A and $500,000 Coverage B employers' liability is required.
(B) Public infrastructure contractors. Each public infrastructure contractor applying for a permit shall obtain, maintain, and provide proof of insurance for the same types of insurance coverages outlined in division (A); however, the policy limits under the general liability insurance shall be $1,000,000 per occurrence and $2,000,000 aggregate. All other coverage provisions outlined in division (A) above shall apply.
(C) The method for proof of insurance is a certified copy of the insurance policy. The city reserves the right to review the insurance requirements and to reasonably adjust insurance coverage and limits when the City Manager determines that changes in statutory law, court decisions, or the claims history of the industry, the agency, network provider, or public infrastructure contractor require adjustment of the coverage.
(D) The city will accept certificates of self-insurance issued by the State of Texas or letters written by the agency in those instances where the state does not issue such letters, which provide the same coverage as required herein. However, certificates of self-insurance must be approved in advance by the Risk Manager for the city.
(E) The agency, network provider or public infrastructure contractor shall furnish, at no cost to the city, copies of certificates of insurance evidencing the coverage required by this section to the city. If the city requests a deletion, revision or modification, the agency, network provider, or public infrastructure contractor shall exercise reasonable efforts to pay for and accomplish the change.
(F) The agency, network provider, or public infrastructure contractor shall file and maintain proof of insurance with the engineering department. An insurance certificate obtained in compliance with this section is subject to city approval, through the city's Risk Manager. The city may require the certificate to be changed to reflect changing liability limits. An agency, network provider, or public infrastructure contractor shall immediately advise the City Attorney of actual or potential litigation that may develop which may affect an existing carrier's obligation to defend and indemnify the city.
(G) Such insurance shall be kept in full force and effect during the period of time for which a permit shall be issued or the space occupied. Insurance coverage must be available on a "per project" basis.
(H) An insurer has no right of recovery against the city. The required insurance policies shall protect the agency or public infrastructure contractor and include the city as an additional insured. The insurance shall be primary coverage for losses covered by the policies.
(I) The policy clause "other insurance" shall not apply to the city.
(J) The agency, network provider, or public infrastructure contractor shall pay premiums and assessments. A company that issues an insurance policy has no recourse against the city for payment of a premium or assessment. Insurance policies obtained by an agency, network provider, or public infrastructure contractor must provide that the issuing company waives all right of recovery by way of subrogation against the city in connection with damage covered by the policy.
(K) Each policy must include a provision that requires the insurance company to notify the city in
writing at least 30 calendar days before canceling or failing to renew the policy or before reducing policy limits or coverages.
(L) Each agency must comply with the insurance requirements in this section, unless the agency's current franchise or license agreement with the city specifically addresses insurance requirements, in which case the franchise or license agreement shall control.
(Ord. O-23-978, passed 7-17-2023)