The grantee shall, at the time of ownership or construction of any system, equipment, lines, and/or buildings independent of its use of the existing transmission and distribution system, obtain and maintain in full force and effect, for the entire effective period of this chapter, the following insurance covering all insurable risks associated with its ownership and use of its electric system:
(a) A comprehensive general liability insurance policy, including completed operations. Liability, independent contractors liability, contractual liability coverage and coverage for property damage from perils of explosion, collapse or damage to underground utilities, commonly known as XCU coverage, in an amount not less than five million dollars ($5,000,000).
(b) An automobile liability insurance policy to cover any vehicles used in connection with its activities under this chapter, in an amount not less than two million dollars ($2,000,000).
(c) Workers' compensation and employer's liability insurance with statutory limits. The City shall be named as an additional insured in all applicable policies. All insurance policies shall provide that they shall not be canceled or modified unless thirty days prior written notice is given to the City. The grantee shall provide the City with a certificate of insurance evidencing such coverage as a condition of this chapter and shall maintain on file with the City a current certificate. All insurance shall be issued by insurance carriers licensed to do business by the State of Michigan or by surplus line carriers on the Michigan Insurance Commission approved list of companies qualified to do business in Michigan. All insurance and surplus line carriers shall be rated A+ or better by A.M. Best Company.
(Ord. 2000-02. Passed 1-18-00.)