The hauler shall obtain, maintain, and submit with the license application certificates of insurance issued by insurers duly licensed by the State of Minnesota providing the following coverage, or a self-insurance plan certified by the Department of Commerce providing equivalent coverage:
(A) Workers compensation insurance.
(1) Worker’s compensation insurance shall be in compliance with all applicable state statutes. Such policy shall include Employer’s Liability Coverage in at least such amount(s) as are customarily issued in Minnesota and an All States or Universal Endorsement, if applicable.
(2) In the event a licensee is a sole proprietor and has elected not to provide workers’ compensation insurance, the licensee shall be required to execute and submit to the department an affidavit of sole proprietorship in a form acceptable to the department.
(B) General liability.
(1) Commercial General Liability Coverage, providing coverage on an “occurrence”, rather than on a “claims made” basis, which policy shall include, but shall not be limited to, coverage for bodily injury, property damage, personal injury, contractual liability (applying to this contract), independent licensees, “XC&U” and products-completed operations liability (if applicable). Such coverage may be provided under an equivalent policy form (or forms), so long as such equivalent form (or forms) affords coverage that is at least as broad. An insurance form (or forms) affords coverage that is at least as broad. An Insurance Services Office “Comprehensive General Liability” policy that includes a “Broad Form Endorsement”, shall be considered to be an acceptable equivalent policy form.
(2) The licensee shall maintain at all times during the period of the license a total combined general liability policy limit of at least $1,000,000 for each occurrence and $2,000,000 aggregate, applying to liability for bodily injury, personal injury, and property damage, which total limit may be satisfied by the limit afforded under its “Commercial General Liability” policy, or equivalent policy, or by such policy in combination with the limits afforded by an “Umbrella” or “Excess Liability” policy (or policies), provided, that the coverage afforded under any such “Umbrella” or “Excess Liability” policy is at least as broad as that afforded by the underlying “Commercial General Liability policy (or equivalent underlying policy).
(3) Such commercial general liability policy and “Umbrella” or “Excess Liability” policy (or policies) may provide aggregate limits for some or all of the coverage afforded thereunder, so long as such aggregate limits have not, as of the beginning of the term or at any time during the term, been reduced to less than the total required limits stated above, and further, that the “Umbrella” or “Excess Liability” policy provides coverage from the point that such aggregate limits in the underlying comprehensive general liability policy become reduced or exhausted.
(C) Automobile liability. Business Automobile Liability Insurance shall be obtained and shall cover liability for bodily injury and property damage arising out of ownership, use, maintenance, or operation of all owned, non-owned and hired automobiles and other motor vehicles utilized by the licensee in connection with performance under this license agreement. Such policy shall provide total liability limits for combined bodily and/or property damage in the amount of at least $1,500,000 per accident, which total limits may be satisfied by the limits afforded under such policy, or by such policy in combination with the limits afforded by an “Umbrella” or “Excess Liability” policy(ies), provided, that the coverage afforded under any such “Umbrella” or “Excess Liability” policy(ies) shall be at least as broad with respect to such business automobile liability insurance as that afforded by the underlying policy. Unless included within the scope of the licensee’s commercial general liability policy, such business automobile liability shall also include coverage for motor vehicle liability assumed under contract.
(D) Evidence of insurance. A licensee shall promptly provide the department with evidence that the insurance coverage required hereunder is in full force and effect at least 20 days prior to the granting of a license by the department. At least 30 days prior to termination of any such coverage, licensee shall provide the department with evidence that such coverage will be renewed or replaced upon termination with insurance that compiles with these provisions. Such evidence of insurance shall be in the form of a “Certificate of Insurance”, or in such other form as the department may reasonably request, and shall contain sufficient information to allow the department to determine whether there is compliance with these provisions. At the request of the department, the licensee shall, in addition to providing such evidence of insurance, promptly furnish the department with a complete (and if so requested, insurer-certified) copy of each insurance policy intended to provide coverage required hereunder. All such policies shall be endorsed to require that the insurer provide at least a 60-day notice to the department prior to the effective date of policy cancellation, non-renewal, or material adverse change in coverage terms. The licensee’s insurance agent shall certify on the certificate of insurance, that he/she has error and omissions coverage.
(E) Insurer policies. All policies of insurance required by this chapter shall be issued by financially responsible insurers licensed to do business in the State of Minnesota, and all such insurers shall be acceptable to the department. Such acceptance shall not be unreasonably withheld or delayed. An insurer with a current A.M. Best Company rating of at least A: VII shall be conclusively deemed to be acceptable. In all other instances, the department shall have 20 business days for the date of receipt of a licensee’s evidence of insurance to advise the licensee in writing of any insurer that is not acceptable to the county. If the department does not respond in writing within such 20-day period, the licensee’s insurer(s) shall be deemed to be acceptable to the county.
(Ord. 22-2, passed 10-25-2022)