A. On or before commencement of franchise operations, the grantee shall furnish to grantor certificates of insurance for liability, workers' compensation and property insurance, in the coverage limits provided in the franchise agreement, from appropriately qualified insurance companies, which shall be “admitted” in the state of California. The certificates of insurance shall provide that the insurance is in force and will not be cancelled or modified without thirty days prior written notice to grantor. The certificates of insurance shall be in a form satisfactory to grantor. The grantee shall maintain at its cost throughout the term of the franchise, the insurance required herein, and in any franchise agreement:
B. The policy of liability insurance shall:
1. Name grantor, its officers, agents and employees as additional insureds;
2. Indemnify all liability for personal and bodily injury, death and damage to property arising from activities conducted and premises used pursuant to this chapter by providing coverage therefor, including but not limited to:
a. Negligent acts or omissions of grantee, and its agents, servants and employees, committed in the conduct of cable system operations, and/or
b. Use of motor vehicles;
3. Provide a combined single limit for comprehensive general liability and comprehensive automobile liability insurance in the amount provided for in the franchise agreement.
C. The policy of workers' compensation insurance shall comply with the laws of the state of California.
D. The policy of property insurance shall provide fire insurance with extended coverage on the cable system property used by grantee in the conduct of cable system operations in an amount adequate to enable grantee to resume cable system operations following the occurrence of any risk covered by this insurance.
The certificates of insurance shall indicate the following information:
1. The policy number;
2. The date upon which the policy will become effective and the date upon which it will expire;
3. The names of the primary insureds and any additional insured required by the franchise agreement;
4. The subject of the insurance;
5. The type of coverage provided by the insurance; and
6. The amount or limit of coverage provided by the insurance.
If the certificates of insurance do not provide all of the above information, grantor reserves the right to inspect the relevant insurance policies.
E. The commencement of franchise operations shall not begin until grantee has complied with the forementioned provisions of this section.
F. In the event grantee fails to maintain any of the above described policies in full force and effect, grantor shall, upon three business days notice to grantee, have the right to procure the required insurance and recover the cost thereof from grantee. Grantor shall also have the right to suspend the franchise during any period that grantee fails to maintain said policies in full force and effect. In order to account for increases in consumer prices, no more than once during any five year period, grantor shall have the right to order grantee to increase
the amounts of the insurance provided in the franchise agreement. Such order may be made by grantor after conducting a duly noticed public hearing. Increases in insurance coverage shall be based upon current prudent business practices of like enterprises involving the same or similar risks. (Ord. 02-101 § 12(part), 2002).