§ 18-27. Insurance.

(a)

(1)

Worker's compensation insurance meeting Texas' statutory requirements and employer's liability insurance with minimum limits of $500,000.00 for each accident.

(2)

Comprehensive commercial general or excess liability insurance with minimum limits of $5,000,000.00 as the combined single limit for each occurrence of bodily injury, personal injury and property damages. The policy shall provide blanket contractual liability insurance for all written contracts, and shall include coverage for products and completed operations liability, independent contractor's liability; and coverage for property damage from perils of explosion and collapse or damage to underground utilities, commonly known as XCU coverage.

(3)

Automobile liability or excess insurance covering all owned, hired, non-owned vehicles in use by the provider, its employees and agents, with personal protection insurance and property protection insurance to comply with the provisions of the Texas No-Fault Insurance Law, with minimum limits of $5,000,000.00 as the combined single limit for each occurrence for bodily injury, personal injury and property damage.

(4)

At the start of and during the period of any construction, builders all-risk insurance, providing coverage on all building and structures which will be installed or constructed as part of the facilities together with an installation floater or equivalent property coverage covering cables, materials, machinery and supplies of any nature whatsoever which are to be used in or incidental to the construction of the facilities. Upon completion of the construction of the facilities, the provider shall substitute for the foregoing insurance policies: fire, extended coverage and vandalism and malicious mischief insurance on the entire completed system. The amount of insurance at all times shall be representative of the insurable values installed or constructed.

(5)

All policies other than those for worker's compensation shall be written on an occurrence or a claims-made-basis.

(6)

The coverage amounts set forth above may be met by a combination of underlying and umbrella policies, so long as in combination the limits equal or exceed those stated.

(b)

(1)

All policies, except for business interruption and worker's compensation policies, shall name the "City of The Colony, a municipal corporation of the State of Texas, and all associated, affiliated, allied and subsidiary entities of the municipality, now existing or hereafter created, and their respective officers, boards, commissions, employees, agents and contractors, as their respective interests may appear" as additional insureds (herein referred to as the "additional insureds"). Each policy which adds additional insureds hereunder, shall contain cross-liability wording of a similar nature:

(2)

"In the event of a claim being made hereunder by one insured for which another insured is or may be liable, then this policy shall cover such insured against whom a claim is or may be made in the same manner as if separate policies had been issued to each insured hereunder."

(c)

Certificates of insurance for each insurance policy required to be obtained by the person in compliance with this section, shall be filed and maintained with the city secretary's office annually during the term of this article. The provider shall immediately advise the indemnities of any claim or litigation that may result in liability to them.

(d)

All insurance policies maintained pursuant to this article shall contain the following: "At least 30 days prior written notice shall be given to the City of The Colony by the insurer of any intention not to renew such policy or to cancel, replace or materially alter same."

(e)

All insurance shall be effected under valid and enforceable policies, insured by insurers licensed or authorized to do business in the State of Texas or surplus line carriers on the State of Texas Insurance Commissioner's approved list of companies qualified to do business in the State of Texas. All insurance carriers and surplus line carriers shall be rated "A-" or better by A.M. Best.

(f)

The person agrees to indemnify and save harmless the indemnities and additional insureds from and against the payment of any retainage or deductible and from the payment of any premium on any insurance policy required to be furnished by this article.

(g)

In lieu of the foregoing, a person shall provide written proof of a self-insurance program and the financial ability to meet the above-stated requirements.

(h)

The above insurance requirements may be met by Persons with a current franchise or license and persons governed by V.T.C.A., Local Government Code Ch. 283 if the current franchise, license or statutory indemnity adequately provides for insurance or bonds or provides an indemnity in favor of the city.

(Ord. No. 03-1468, § 9, 6-16-2003; Code 1983, § 18-27)