(A) Prior to beginning any construction in or installation of the permittee's facilities in the public right-of-way, the permittee shall obtain insurance as set forth below and file certificates evidencing same with the municipality. The insurance shall be maintained in full force and effect until the end of the term of the franchise agreement. In the alternative, the permittee may satisfy this requirement through a program of self-insurance, acceptable to the municipality, by providing reasonable evidence of its financial resources to the municipality. The municipality's acceptance of the self-insurance shall not be unreasonably withheld.
(B) Commercial general liability insurance, including completed operations liability, independent contractors liability, contractual liability coverage, railroad protective coverage and coverage for property damage from perils of explosion, collapse or damage to underground utilities, commonly known as XCU coverage, in an amount not less than $5,000,000.
(C) Liability insurance for sudden and accidental environmental contamination with minimum limits of $500,000 and providing coverage for claims discovered within three years after the term of the policy. Pursuant to the 2006 MPSC decision in Case U-14720, the permittee need not comply with the preceding sentence until the time after the effective date of this chapter that it decides to place any new or existing facilities underground within the public right-of-way in the municipality.
(D) Automobile liability insurance in an amount not less than $1,000,000.
(E) Workers' compensation and employer's liability insurance with statutory limits, and any applicable federal insurance of a similar nature.
(F) The coverage amounts set forth above may be met by a combination of underlying (primary) and umbrella policies so long as in combination the limits equal or exceed those stated. If more than one insurance policy is purchased to provide the coverage amounts set forth above, then all policies providing coverage limits excess to the primary policy shall provide drop down coverage to the first dollar of coverage and other contractual obligations of the primary policy, should the primary policy carrier not be able to perform any of its contractual obligations or not be collectible for any of its coverages for any reason during the term of the franchise agreement, or (when longer) for as long as coverage could have been available pursuant to the terms and conditions of the primary policy.
(Ord. 08-02, passed 4-15-2008)