Lincoln Municipal Code Art. VII Insurance

(a) Each licensee shall defend, indemnify and hold harmless the city, its officer, agents, employees, representatives and volunteers from any and all claims, demands, suits, causes of action, damages, costs, expense, losses or liability, in law or in equity, of every kind and nature whatsoever ("claims"), arising out of or in connection with licensee's operations under this chapter, including, but not limited to:

(1) Injury or death to persons, including, but not limited to, licensee's officers, agents, contractors or employees, or damage to property, including loss of use, caused or alleged to be caused in whole or in part by any act or omission of licensee, its officers, agents, contractors, employees, or representatives or anyone for whose acts licensee may be liable;

(2) Injury or damage arising out of invasion of the right of privacy, libel, slander, defamation of any person, firm or corporation, or the violation or infringement of any copyright, patent, service mark, trademark, trade name, or of any other right of any person, firm or corporation;

(3) Injury or damage arising out of anti-competitive practices alleged against the licensee;

(4) Claims, damages or penalties arising out of licensee's failure to comply with the provisions of any statute, regulation or ordinance of the United States, state of California or any local agency applicable to the licensee in its business;

(5) Injury or damage arising out of licensee's failure to comply with the provisions of this chapter relating to procurement and maintenance of insurance;

(6) Injury or damage arising out of licensee's failure to fulfill any of the covenants set forth in this chapter;

(7) Claims, causes of action, proceedings, and judgments, including reasonable attorneys' fees and other reasonable defense costs, arising out of any allegation that the license granted pursuant to this chapter is inconsistent with or fails to meet the requirements of Government Code Section 53066 et seq. or any other state law or the Telecommunications Act of 1996, or any other federal law.

(b) Licensee shall pay and satisfy any judgment or decree that may be rendered against the city, its officers, agents, employees or representatives, or any of them, arising out of any such claims.

(c) Licensee shall reimburse the city, its members, their officials, agents, employees or representatives, for any and all legal expense incurred by any of them in connection herewith or in enforcing the indemnity granted in this section.

Indemnitees may, at their discretion, participate in the investigation and defense of any claims or litigation brought against them at any time, using legal counsel of their choice, and such expense shall be borne solely by licensee. Such participation shall not relieve licensee from its duty to defend, indemnify and hold harmless indemnitees as set forth in this section.

(d) The indemnification obligations of licensee set forth in this section shall apply regardless of any act or omission of the city, its officials, agents, employees, representatives or volunteers which may have contributed to the injury or damage, to the maximum extent allowed by California law.

(Ord. 747B §3(part), 2003)

(a) Each licensee shall file with the application which it files pursuant to the provision of Section 5.36.210 of this chapter, and at all times thereafter maintain in full force and effect at its sole expense, the following insurance:

(1) General Liability. General liability insurance including, but not limited to, protection for claims of bodily injury and property damage liability, personal and advertising injury liability, and products and completed operations liability. Coverage shall be at least as broad as insurance services office commercial general liability coverage form GG 0001 (occurrence). The limits of liability shall be not less than:

a. Each occurrence, $5,000,000.00;

b. Personal and advertising injury, $5,000,000.00;

c. General aggregate, $2,000,000.00;

d. Products and complete operations aggregate, $2,000,000.00.

The policy shall cover contractual liability applicable to the licensee's assumed liability under this contract.

(2) Automobile Liability. Automobile liability insurance providing protection against claims of bodily injury and property damage arising out of ownership, operation, maintenance, or use of owned, hired, and non-owned automobiles. Coverage shall be at least as broad as insurance services office automobile liability coverage form CA 0001, symbol 1 (any auto). The limits of liability shall not be less than:

a. Bodily injury and property damage combined single limit, $1,000,000.00.

If general liability coverage, as required in subsection (a)(1) of this section, is provided by the commercial general liability form, the automobile liability policy shall include an endorsement providing automobile contractual liability.

(3) Workers' Compensation. Workers' compensation insurance, with coverage as required by the state of California (unless the licensee is a qualified self-insurer with the state of California), and employers liability coverage. The limits of employer's liability shall not be less than:

a. Each accident, $1,000,000.00;

b. Disease each employee, $1,000,000.00;

c. Disease policy limit, $1,000,000.00;

(4) Excess or Umbrella Liability. Excess or umbrella liability providing excess coverage at least as broad as the underlying coverage for general liability, automobile liability and employers liability with a limit of $4,000,000.00 per occurrence and in the aggregate.

(b) The licensee's general liability, automobile liability, and excess or umbrella liability policies, shall contain the following provisions:

(1) The city, its officers, agents, employees, representatives and volunteers, shall be covered as additional insureds as respects liability arising out of the activities performed by or on-behalf of the licensee, products and completed operations of the licensee, premises owned, occupied, or used by the licensee, or automobiles owned, leased, hired, or borrowed by the licensee. The policy shall contain no special limitations on the scope of coverage afforded to the commission, its members, their officials, agents, employees, representatives or volunteers;

(2) The licensee's insurance coverage shall be primary insurance as respects the city, its officers, agents, employees, representatives or volunteers. Any insurance or self-insurance maintained by city, its officers, agents, employees, representatives or volunteers shall excess of the licensee's insurance and shall not contribute with it.

(3) Any failure to comply with reporting or other provisions of the policies on the part of the licensee, including breaches of warranties or unintentional misrepresentations, shall not affect coverage provided to the city, its officers, agents, employees, representatives or volunteers.

(4) The licensee's workers' compensation and employer's liability policies shall contain an endorsement that waives any rights or subrogation against the city, its officials, agents, employees, representative or volunteers.

(5) Each insurance policy shall state that coverage shall not be suspended, voided, canceled by either party, reduced in scope or in limits, nonrenewed, or materially changed unless the insurer provides 30 days advance written notice by certified mail to the city manager prior to such change. The insurer shall provide ten days advance notice by certified mail to the city manager in the event of cancellation due to nonpayment of premium.

(6) All of the licensee's insurance coverage, except as noted below, shall be placed with insurance companies with a current A.M. Best's rating of at least A-VII.

Exceptions:

a. Underwriters at Lloyd's of London;

b. Workers' compensation which is provided through a State Compensation Insurance Fund;

c. Licensee's qualified workers' compensation self-insurance under California law.

(7) The city will accept licensee's self-insurance of its general or automobile liability risks only if the licensee has a minimum net worth of at least $10,000,000.00.

(8) The licensee shall furnish the commission with certificates of insurance, including copies of all endorsements specifically required hereunder, signed by a person authorized by the insurer to bind coverage on its behalf, as evidence of the coverage required by this section.

(9) For unforeseen risks, the city, at its discretion, may increase the amounts and types of insurance coverage required hereunder at any time during the term of the contract by giving written notice to the licensee. Licensee shall immediately procure such insurance or increase the amounts of insurance coverage, and provide certificates of insurance as required in subsection (b)(8) of this section.

(10) The form and substance of the insurance required of the licensee shall be subject to the approval of city attorney. Any acceptance of insurance certificates by the city shall in no way limit or relieve licensee of licensee's duties and responsibilities set forth in this chapter.

(11) The failure of the city to enforce in a timely manner any of the provisions of this section shall not act as a waiver to enforcement of any of these provisions at any time during the term of the franchise.

(Ord. 747B §3(part), 2003)

Each licensee shall cause each insurance policy obtained by it to provide that the insurance company waives all right of recovery by way of subrogation against the city and its officers, agents, employees, representatives or volunteers in connection with any damage covered by any policy, whether for nonpayment of premium, or otherwise, and whether at the request of the licensee or for other reasons, except after 30 calendar days advance written notice mailed by the insurer to the city manager.

(Ord. 747B §3(part), 2003)