§ 1004-2.416. Insurance requirements.

(a)

Insurance. Before beginning any franchise operations, a grantee shall obtain, and provide satisfactory evidence of having obtained, policies of liability and workers' compensation insurance and pollution liability insurance from companies that are authorized to transact business in the state of California by the Insurance Commissioner of California and have a minimum rating of or equivalent to A-:VIII in Best's Key Rating Guide, Comprehensive Liability Insurance, provided, however, that a grantee that uses its facilities to transport only potable water is not required to provide evidence of pollution liability insurance.

(b)

Liability Coverage. Each liability insurance policy obtained by a grantee must:

(1)

Be issued to the grantee and name the county and the county's officers, agents, and employees, as additional insureds;

(2)

Provide coverage for the grantee's liabilities assumed under this ordinance, including without limitation, the grantee's obligation to indemnify the county and the county's officers, agents, and employees for all liability for personal and bodily injury, death and damage to property arising from activities conducted pursuant to the franchise, and the acts or omissions of the grantee, and its agents, servants and employees, committed in the conduct of franchise operations. The coverage must provide a combined single limit liability insurance in the amount of ten thousand dollars, subject to self-insured retention in an amount and form that is appropriate and prudent for operations substantially similar to those of grantee, and subject to approval by county in its sole discretion, and may not be cancelled unless at least thirty days' prior written notice is provided to the road commissioner by grantee or its insurance provider, provided, however, that the amount of liability coverage required of a grantee that uses its facilities to transport only potable water shall be five million dollars.

(c)

Workers' Compensation. Each workers' compensation insurance policy obtained by the grantee must:

(1)

Cover all of the grantee's employees who in the course and scope of their employment conduct or perform work pursuant to the franchise operations;

(2)

Provide for every benefit and payment presently or after conferred by Division 4 of the California Labor Code upon an injured employee, including vocational rehabilitation and death benefits;

(3)

Provide for every benefit and payment under any option of the Longshore and Harbor Workers' Compensation Act (33 U.S.C. sections 901 et seq.); and

(4)

Be noncancellable without forty-five days' prior written notice to the road commissioner.

(5)

In lieu of the policy of workers' compensation insurance required by this section, a grantee may substitute and provide a certificate of consent to self-insure, issued by the Board of Industrial Relations of the state of California.

(d)

Pollution Coverage. Each pollution liability insurance policy obtained by the grantee must:

(1)

Provide limits of coverage of five million dollars per occurrence and ten million dollars aggregate, or other equivalent insurance as determined acceptable by the county; and

(2)

Be issued to the grantee and name the county, the county's officers, agents, and employees, as additional insureds by endorsement form acceptable to the county.

(e)

Evidence of Coverage. Before beginning any franchise operations, and for five years after the termination or expiration of a franchise, a grantee shall file with the road commissioner either certified copies of the required liability, workers' compensation, and pollution liability policies, or a certificate of insurance for each of the required policies executed by the company issuing the policy, certifying that the policy is in force, with any necessary endorsements, including without limitation, cancellation notification endorsements. The grantee shall provide the road commissioner with renewal certificates throughout the term of the franchise. The grantee shall provide all of the following information with respect to the policy:

(1)

The policy number;

(2)

The date upon which the policy will become effective and the date upon which it will expire;

(3)

The names of the named insured and any additional insureds;

(4)

The additional insured endorsement form(s);

(5)

The self-insured retention endorsement (if applicable);

(6)

The subject of the insurance;

(7)

The type of coverage provided by the insurance;

(8)

The amount of limit of coverage provided by the insurance; and

(9)

Copies of all endorsements that form a part of the policy and are applicable to the grantee's operations under this ordinance.

(f)

Compliance. No franchise operation may commence until the grantee has complied with the provisions of this section. All franchise operations must be suspended during any period that the grantee fails to maintain these policies in full force and effect. In no event shall the county's self-insurance program be used to respond to or cover any grantee liability.

(g)

Self Insurance Program. In lieu of any insurance required by this Section 1004-2.416, county may, upon application by a grantee, permit a grantee to substitute a self administered claims program (self-insurance) covering the risks assumed under a franchise. A grantee permitted to substitute a program of self-insurance shall provide county with a letter evidencing and describing the self administered claims program, duly executed by an authorized officer of the grantee, and shall notify county in writing thirty days prior to the termination of the self administered claims program.

(Ord. No. 2013-19, § II, 8-13-13)