Pipeline company shall procure and maintain at all times, in full force and effect, a policy or policies of insurance to provide coverages as specified herein, naming the town as an additional insured and covering all public risks related to the use, occupancy, condition, maintenance, existence or location of the public rights-of-way and the construction, installation, operation, maintenance or condition of the pipeline, including the transportation of gas through the pipeline, as follows.
(A) Primary liability insurance coverage.
(1) Commercial general liability. Five million dollars per occurrence, including coverage for the following:
(a) Premises liability;
(b) Independent contractors;
(c) Products/completed operations;
(d) Personal injury;
(e) Contractual liability; and
(f) Explosion, collapse and underground property damage.
(2) Property damage liability. One million dollars per occurrence.
(3) Automobile liability. One million dollars per accident, including, but not limited to, all owned, leased, hired or non-owned motor vehicles used in conjunction with the rights granted under an agreement.
(4) Workers’ compensation. As required by law; and employer’s liability of $1,000,000 per accident.
(B) Requirements and revisions to required coverage. The town may, not more than once every five years during the term of an agreement, revise insurance coverage requirements and limits required by the agreement. Pipeline company agrees that within 90 days of receipt of written notice from the town, pipeline company will implement all such revisions reasonably requested by the town. The policy or policies of insurance shall be endorsed to provide that no material changes in coverage, including, but not limited to, cancellation, termination, non-renewal or amendment, shall be made without 30 days’ prior written notice to the town. The policies and certificate of insurance provided to the town shall contain the following language:
“Cancellation Clause
Should any of the above described policies be cancelled before the expiration date therefore, the issuing insurer will provide 30 days’ written notice to the named certificate holder.”
(C) Underwriters and certificates. Pipeline company shall procure and maintain its insurance with underwriters authorized to do business in the State of Texas and who are reasonably acceptable to the town in terms of solvency and financial strength. Within 30 days following adoption of an agreement by the City Council, pipeline company shall furnish the town with certificates of insurance signed by the respective companies as proof that it has obtained the types and amounts of insurance coverage required herein. No construction shall commence until such certificates are received. In addition, pipeline company shall, on demand, provide the town with evidence that it has maintained such coverage in full force and effect.
(D) Deductibles. Deductible or self-insured retention limits on any line of coverage required herein shall not exceed $50,000 in the annual aggregate unless the limit per occurrence or per line of coverage, or aggregate is otherwise approved by the town.
(E) No limitation of liability. The insurance requirements set forth in this section and any recovery by the town of any sum by reason of any insurance policy required under an agreement shall in no way be construed or affected to limit or in any way affect pipeline company’s liability to the town or other persons as provided by the agreement or law.
(Ord. 326, passed 7-14-2011) Penalty, see § 154.999