SECTION 6. INSURANCE REQUIREMENT AND PERFORMANCE BOND.
(a) During the term of this Contract franchise, Grantee shall obtain and maintain insurance coverage at its sole expense, with insurers rated at least A-VII by AM Best and that are eligible or permitted to do business in the state of Kansas. Grantee shall provide the following insurance:
(1) Workers’ compensation as provided for under any worker’s compensation or similar law in the jurisdiction where any work is performed with an employers’ liability limit for bodily injury of $1,000,000 each accident, by disease policy limits and by disease each employee.
(2) Commercial general liability, written on Insurance Services Office (ISO) policy form CG 00 01 or its equivalent, including coverage for contractual liability and products completed operations liability on an occurrence basis and not a claim made basis, with a limit of Two Million Dollars ($2,000,000) combined single limit per occurrence and in the aggregate for bodily injury, personal injury, and property damage liability. The City shall be included as an additional insured with respect to liability arising from Grantee’s operations under this Contract franchise.
(b) As an alternative to the requirements of subsection (a), Grantee may self-insure and, as such, Grantee has the ability to provide coverage in an amount of One Million Dollars ($1,000,000) per occurrence and Two Million Dollars ($2,000,000) in aggregate, to protect the City from and against all claims by any person for loss or damage from personal injury, bodily injury, death or property damage occasioned by Grantee, or alleged to so have been caused or occurred as respects this Contract franchise. In the event Grantee elects to self-insure its obligation to include City as an additional insured, the following provisions shall apply:
(1) City shall promptly and no later than thirty (30) days after notice thereof provide Grantee with written notice of any claim, demand, lawsuit or the like, for which it seeks coverage pursuant to the section and provide Grantee with copies of any demands, notices, summonses or legal papers received in connection with such claim, demand, lawsuit or the like;
(2) City shall not settle any such claim, demand, lawsuit or the like without the prior written consent of Grantee; and,
(3) City shall fully cooperate with Grantee in the defense of the claim, demand, lawsuit or the like.
(c) Grantee shall, as a material condition of this Contract franchise, prior to the commencement of any work and prior to any renewal thereof, deliver to the City a certificate of insurance or evidence of self-insurance, satisfactory in form and content to the City, evidencing that the above insurance is in force. Grantee shall timely notify the City if the insurance is cancelled or non-renewed and not replaced.
(d) Grantee shall, as a material condition of this Contract franchise, prior to the commencement of any work and prior to any renewal thereof, deliver to the City a performance bond in the amount of Fifty Thousand Dollars ($50,000), payable to the City to ensure the appropriate and timely performance in the construction and maintenance of Facilities located in the Public right-of-way. The required performance bond must be, issued by a surety company authorized to transact business in the state of Kansas, and satisfactory to the City Attorney in form and substance. (Ord. 20252 § 6, 8-11-20.)