(A) Upon award of the Franchise, prior to commencing construction of the system, and at all times thereafter, the Grantee shall secure and maintain the following liability insurance policy or policies in full force and effect at its sole expense. Prior to the effective date of the Franchise, and thereafter within thirty (30) days of each annual anniversary of the effective date of this Franchise, the Grantee shall file certificates of insurance with the Village Clerk as evidence that the insurance coverage specified below has been obtained.
(1) Commercial General Liability Insurance. Comprehensive or Commercial general liability insurance, including, but not limited to, coverage for bodily injury, personal injury, and property damage shall be maintained at the sum(s) of $1,000,000 per occurrence and $5,000,000 aggregate.
(2) Business Automobile Liability. Comprehensive automobile liability including, but not limited to, non-ownership and hired car coverage as well as owned vehicles with coverage for bodily injury and property damage, shall be maintained at the sum(s) of $1,000,000 per accident.
(3) Property Loss. Fire insurance with coverage for extended perils on the Franchise property used by Grantee in the conduct of Franchise operations in an amount adequate to enable Grantee to resume Franchise operations following the occurrence of any risk covered by this insurance.
(4) Worker's Compensation Insurance. In such coverage, with statutory limits as may be required by the State of Illinois.
(B) The Village and its officers, agents, and employees shall be named insureds, and the policy or policies shall contain cross-liability endorsements. Said insurance shall provide that the insurance provided by the Grantee shall be primary and that any provision of any contract of insurance or other risk protection benefit or self-insurance policy purchased or in effect or enacted by the Village and any other insurance or benefit shall be in excess thereof.
(C) The insurer or insurers shall have Best Insurance Rating of at least A-, or the highest rating attributable to insurance carriers by a recognized rating agency and shall be authorized to write the required insurance, and shall be approved by the State of Illinois.
(D) The policy or policies of insurance shall be maintained by the Grantee in full force and effect during the entire term of the Franchise. All certificate(s) shall contain the following endorsement:
“Should any of the above described policies be canceled before the expiration date thereof, the issuing Grantee will mail 30 day prior written notice to the holder named on the certificate.”
(E) In the event of the cancellation of any insurance policy required herein or upon Grantee's failure to procure said insurance, the Village shall have the right, in addition to such other remedies as it may have under this Franchise Agreement, to procure such insurance and charge the cost thereof to the Grantee.
(F) The Village shall retain the right to re-examine insurance policy coverage limits and where necessary, after consultation with the Grantee, increase the coverage limits during the life of the Franchise Agreement or any extension thereto.
(Ord. 01-2301, passed 12-11-01) Penalty, see § 113.2202