A. On or before commencement of franchise operations, the grantee shall obtain policies of liability, worker's compensation and property insurance from companies admitted and authorized to transact business in California by the Insurance Commissioner of California.
B. The policy of liability insurance shall:
1. Be issued to grantee and name grantor, its officers, officials, agents, and employees as additional insureds;
2. Indemnify for 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 coverage for:
a. Negligent acts or omissions of grantee and its employees, committed in the conduct of franchise 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; such insurance policy shall be subject to the review and approval of grantor's legal counsel;
4. Be noncancelable without thirty (30) days' prior written notice thereof directed to grantor; and
5. Contain such other provisions as required by the franchise.
C. The policy of workers' compensation insurance shall:
1. Have been previously approved as to substance and form by the California Insurance Commissioner;
2. Cover all employees of grantee who in the course and scope of their employment are to conduct the franchise operations;
3. Provide for every benefit and payment presently or hereinafter conferred by Division 4 of the Labor Code of the state upon an injured employee, including vocational rehabilitation and death benefits; and
4. Contain such other provisions as required by the franchise.
D. Grantee shall file with the city clerk prior to commencement of franchise operations either certified copies of these insurance policies or a certificate of insurance for each of the required policies executed by the company issuing the policy or by a broker authorized to issue such a certificate, certifying that the policy is in force and providing the following information with respect to said policy:
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 named insureds and any additional insured required by this chapter or the franchise agreement;
4. The subject of the insurance;
5. The type of coverage provided by the insurance; and
6. Amount or limit of coverage provided by the insurance.
E. Conduct of franchise operations shall not commence until grantee has complied with the aforementioned provisions of this section, or with the specific insurance provisions that the grantor and grantee agreed to in the franchise agreement.
F. In the event grantee fails to maintain any of the above-described policies in full force and effect, grantor shall, upon forty-eight (48) hours 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. (Ord. 9527 § 1 (part), 1995: prior code § 3825)