Chapter 1.07 — INSURANCE AND INDEMNIFICATION REQUIREMENTS

A. The City Council finds that the issuance of licenses, permits and other approvals pursuant to the provisions of this Code creates a risk to the City as a result of issuing those licenses, permits and approvals, which are primarily for the benefit of the applicant, licensee or permittee. This is especially true for projects for which discretionary City approvals are necessary and for which, in addition to other legal requirements, environmental review by the City is required pursuant to CEQA because, among other things, substantial City time and effort are expended in complying with CEQA’s requirements and other legal requirements necessary before granting such approvals.

B. Judicial challenges arising from or related to the issuance of licenses, permits and other
approvals, especially the City’s CEQA determinations for projects requiring discretionary
approvals, are costly and time consuming. In addition, project opponents often seek an
award of attorneys’ fees or costs in such challenges. As project applicants, licensees, and
permittees are the primary beneficiaries of such approvals, it is appropriate that such
applicants, licensees and permittees should bear the expense of defending against any such
judicial challenge, and bear the responsibility for any costs, attorneys’ fees, and damages
which may be awarded to a successful challenger.
(Ord. 2006-26 § 1 (part), 2006; Ord. 2023-22 § 22, 2023)

In this chapter the following words or phrases shall have the following meanings:

“Application” means an initial written request required by the City which commences the City’s processing of the project that requires a discretionary approval and approval of a CEQA document.

“CEQA” means the California Environmental Quality Act and the State CEQA Guidelines (California Public Resources Code Section 21000 et seq. and 14 CCR Section 15000 et seq.) and any action taken pursuant thereto including, but not limited to, an environmental impact report, subsequent environmental impact report, supplemental environmental impact report, mitigated negative declaration, negative declaration, addendum to an environmental impact report or negative declaration, statutory exemption, categorical exemption, or a determination that no CEQA document is required.

“Project” means any amendment, modification permit, use permit, variance or other City-issued permit that requires discretionary approval in accordance with this Code. (Ord. 2006-26 § 1 (part), 2006; Ord. 2023-22 § 23, 2023)

For any license, permit or approval issued pursuant to this Code, the City may add as a condition of approval a requirement that the applicant, licensee, or permittee obtain insurance that will substantially protect the City from liability. The Risk Manager shall have the authority to determine all insurance requirements including, but not limited to, certificates, language, type, amount, endorsements, and waivers of subrogation. Insurance required by the Risk Manager or as otherwise provided for under the provisions of this Code shall be governed by the following

Downloaded from https://ecode360.com/NE4559 on 2026-09-25

City of Newport Beach, CA § 1.07.025 GENERAL PROVISIONS § 1.07.040

requirements:

A. Each certificate of insurance shall require approval by the Risk Manager;

B. Insurance furnished must contain a condition that it cannot be modified or cancelled
without at least thirty (30) days’ written notice to the City;

C. All insurers shall be authorized by the California Insurance Commissioner to transact the
business of insurance in the State, with an assigned policyholders’ rating and financial size
category class determined to be appropriate by the Risk Manager; and

D. Any other requirements the Risk Manager deems necessary to protect the interests of the
City.
The City Manager or Risk Manager may waive any of the requirements set forth in this section
if they determine the requirement is unnecessary to protect the interests of the City.
(Ord. 2023-22 § 24, 2023)

A. For any license, permit or approval issued pursuant to this Code, the City may add as a condition of approval a requirement that the licensee, permittee, or applicant defend, indemnify, release and hold harmless the City, its City Council, boards and commissions, officers, agents, volunteers, and employees, from and against any and all claims, demands, obligations, damages, actions, causes of action, suits, losses, judgments, fines, penalties, liabilities, costs and expenses (including without limitation, attorney’s fees, disbursements and court costs) of every kind and nature whatsoever which may arise from or in any manner relate (directly or indirectly) to the license, permit, or approval. This indemnification shall include, but not be limited to, damages awarded against the City, if any, costs of suit, attorneys’ fees, and other expenses incurred in connection with such claim, action, or proceeding whether incurred by licensee, permittee, or applicant, the City, and/or the parties initiating or bringing such proceeding.

B. Any applicant for a discretionary permit under any provision of this Code which also requires a determination under CEQA shall be provided notice of the provisions of this chapter. Any project approval may, in the discretion of the approving body, be conditioned to indemnify the City according to the provisions of this chapter, as follows: Defend, indemnify, release and hold harmless the City, its City Council, boards and commissions, zoning administrator, officers, agents, volunteers, and employees from and against any and all claims, demands, obligations, damages, actions, causes of action, suits, losses, judgments, fines, penalties, liabilities, costs and expenses (including without limitation, attorney’s fees, disbursements and court costs) of every kind and nature whatsoever which may arise from or in any manner relate (directly or indirectly) to the project, the project’s approval based on the City’s CEQA determination and/or the City’s failure to comply with the requirements of any Federal, State, or local laws, including, but not limited to, CEQA, General Plan and zoning requirements. This indemnification shall include, but not be limited to, damages awarded against the City, if any, costs of suit, attorneys’ fees, and other expenses incurred in connection with such claim, action, or proceeding whether incurred by the applicant, the City, and/or the parties initiating or bringing such proceeding. (Ord. 2006-26 § 1 (part), 2006; Ord. 2023-22 § 25, 2023)

Downloaded from https://ecode360.com/NE4559 on 2026-09-25

City of Newport Beach, CA § 1.07.040 NEWPORT BEACH CODE § 1.07.050

Any indemnification required under the provisions of this chapter shall be subject to the following:

A. The City shall promptly notify the applicant, licensee or permittee of any claim, action, or proceeding related to any license, permit or approval or that is brought to attack, set aside, void or annul a discretionary project approval, and/or approval of a related CEQA document;

B. The City shall retain the right to participate in the defense of the claim, action or proceeding, including selection of defense counsel;

C. The applicant, licensee or permittee shall not be required to pay or perform any settlement unless the settlement is approved by the applicant, licensee or permittee; and

D. The applicant, licensee or permittee shall indemnify the City for all of the City’s costs, fees, and damages which the City incurs in enforcing the indemnification agreement. (Ord. 2006-26 § 1 (part), 2006; Ord. 2023-22 § 26, 2023)

The applicant, licensee or permittee shall pay to the City upon demand any amount owed to the City pursuant to the indemnification requirements prescribed in this chapter. (Ord. 2006-26 § 1 (part), 2006; Ord. 2023-22 § 27, 2023)

Downloaded from https://ecode360.com/NE4559 on 2026-09-25

City of Newport Beach, CA § 1.08.010 GENERAL PROVISIONS § 1.08.055