(A) Each construction permit shall be conditioned upon the permittee obtaining all insurance required under this section and approval of such insurance by the city's Risk Manager. No permittee shall allow any contractor or subcontractor to commence work on a contract or sub-contract until all similar such insurance required of the same has been obtained and approved by the city's Risk Manager.
(B) The insurance required under this chapter must be obtained and maintained for the entire period the operator of the utility system has facilities in the public rights-of-way and for a period thereafter as specified in the minimum coverages described below. If the operator, its contractors or subcontractors do not have the required insurance, the city may order such entities to stop operations until the insurance is obtained and approved.
(C) For permittees that are entering the market, the insurance certificates described in this chapter shall be filed prior to the commencement of construction and once a year thereafter and as provided below in the event of a lapse in coverage. For incumbent providers, the insurance certificates shall be filed within sixty (60) days of the effective date, annually thereafter and as provided below in the event of a lapse in coverage.
(D) The insurance certificates described in this chapter shall contain a provision that coverages afforded under these policies will not be canceled until at least thirty (30) days' prior written notice has been given to the city. Policies shall be issued by companies authorized to do business under the laws of the State of Kentucky. Financial ratings must be no less than “A” in the latest edition of Best's Key Rating Guide.
(E) If any insurance certificate described in this chapter indicates that the insurance shall terminate or lapse during the period in which the utility system is under construction or in operation, maintenance or repair, the operator of the utility system shall furnish, at least thirty (30) days prior to the expiration of the date of such insurance, a renewed certificate of insurance as proof that equal and like coverage has been or will be obtained prior to any such lapse or termination during the balance of the period in which the utility system in under construction or in operation, maintenance or repair.
(F) A permittee and an operator, including their respective contractors or subcontractors engaged in work on their behalf in, on, under or over public rights-of-way shall maintain the following minimum insurance. The city, its council members, officers, employees, agents and contractors shall be named as an additional insured on each of the policies listed in this chapter.
(1) Comprehensive general liability insurance policy with a minimum limit of not less than one million dollars ($1,000,000.00) per occurrence (combined single limit) for bodily injury and property damage and not less than one million dollars ($1,000,000.00) aggregate for each personal injury liability, products-completed operations, premises operations, blanket contractual and owners' and contractors' protective and each accident;
(2) Comprehensive automobile liability insurance policy for owned and non-owned, leased and rented vehicles with a minimum limit of not less than one million dollars ($1,000,000.00) per occurrence (combined single limit) for bodily injury and property damage and not less than one million dollars ($1,000,000.00) aggregate for each personal injury liability, products-completed operations and each accident;
(3) Fire all-risk replacement cost insurance policy in the amount of one million dollars ($1,000,000.00) per occurrence;
(4) Business interruption insurance policy in amounts deemed reasonable and acceptable to the city's Risk Manager; and
(5) Worker's Compensation and Employers' Liability insurance policy providing statutory coverage (Coverage A and Coverage B) or coverage in an aggregate amount of one million dollars ($1,000,000.00) written in accordance with the laws of the State of Kentucky, providing coverage for all employees of the permittee/operator and requiring an “all states” endorsement if the permittee/operator is domiciled outside the State of Kentucky and the policy is written outside the State of Kentucky. The permittee/operator shall furnish the city with a certificate showing proof of such coverage.
(G) Insurance coverage shall be provided in accordance with the limits specified and the conditions indicated therein. Claims-made policies are not acceptable. When an umbrella or excess coverage is in effect, coverage shall be provided in “following form.” Such insurance shall not be canceled or materially altered to reduce coverage until the city has received at least thirty (30) days prior written notice of such cancellation or change. The permittee/operator shall be responsible for notifying the city of such change or cancellation.
(H) The permittee/operator shall file the required original certificate(s) of insurance with endorsements with the city's Risk Manager, subject to the city's prior approval, which shall clearly state:
(1) The policy number; name of insurance company; name, address and telephone number of the agent or authorized representative; name, address and telephone number of insured; project name and address; policy expiration date; and specific coverage amounts;
(2) That thirty (30) days prior written notice of cancellation is unqualified as to the acceptance of liability for failure to notify the city; and
(3) That the insurance is primary with respect to any other valid or collectable insurance that the city may possess, including any self-insured retentions the city may have and any other insurance the city possesses shall not be required to contribute with this insurance.
(I) All contracts shall require the contracting party to furnish a certificate of insurance for one million dollars ($1,000,000.00) of commercial general liability insurance or professional liability insurance, if required, naming the city as an additional insured. Any insurance carrier of the permittee shall be admitted and authorized to transact insurance business in the State of Kentucky and shall be rated at least “A” in Best's Key Rating Guide. Insurance certificates that are issued by non-admitted insurance companies are not acceptable.
(J) The certificate(s) of insurance with endorsements and notices shall be filed with the city. These insurance requirements shall be subject to review annually, performed by the city's Risk Manager. If the city's Risk Manager should require any change in coverage, notice thereof shall be given to the permittee in writing and the permittee shall comply with such notice within thirty (30) days of receipt thereof.
(K) Prior to the execution hereof, any deductibles or self-insured retentions must be stated on the certificate(s) of insurance, which shall be sent to and approved by the city, acting by and through its Risk Manager. “Cross liability,” “severability of interest” or “separation of insureds” clauses shall be made a part of the comprehensive general liability and comprehensive automobile liability policies.
(Ord. 2003-08, passed 3-17-03)