§ 40-293. Insurance; bond.

(a)

Permittee shall maintain in effect certain insurance coverage and shall furnish certificates of insurance, in duplicate form, before beginning its performance under it permit. All policies except Professional Liability and Worker's Compensation must name the city as an additional insured. All liability policies must be issued by a company with a Certificate of Authority from the State Department of Insurance to conduct insurance business in Texas or a rating of at least B+ and a financial size of Class VI or better according to the current year's Best's Key Rating Guide, Property-Casualty United States. Permittee shall maintain the following insurance coverage in the following amounts:

(1)

Commercial General Liability insurance including Contractual Liability insurance: $500,000 per occurrence; $10,000,000 aggregate;

(2)

Worker's Compensation including Broad Form All States endorsement: Statutory amount;

(3)

Professional Liability: $1,000,000 per claim; $1,000,000 aggregate; and

(4)

Automobile Liability insurance: $1,000,000 combined single limit per occurrence.

Aggregate limits are per 12-month policy period unless otherwise indicated. All insurance policies must require on their face, or by endorsement, that the insurance carrier waives any rights of subrogation against the city. Permittee shall give 30 days written notice to the city before a policy may be canceled or non-renewed. Within the 30-day period, permittee shall provide other suitable policies in lieu of those about to be canceled or non-renewed so as to maintain in effect the required coverage. The director of the department of administration and regulatory affairs, or its successor department, may adjust the above liability limits as reasonably necessary.

(b)

Each permittee shall furnish a bond in an amount determined by the director to be adequate to cover the cost of removal of his facilities, closure of the well bore, and restoration of the public street to its condition prior to the installation.

(c)

The bond and evidence of insurance need not be furnished with the application; however, they shall be furnished to the director prior to the issuance of the permit. The proof of insurance shall include a covenant extending through the term of the permit that the insurer will provide the director ten days' prior written notice in the event of cancellation or nonrenewal thereof.

(Ord. No. 91-1157, § 1, 8-14-91; Ord. No. 2012-522, § 7, 5-30-2012, eff. 7-1-2012)