13.22.008 – Insurance
- Required Coverages and Limits. Unless otherwise provided by franchise, license, or similar agreement, each utility occupying right-of-way or constructing any facility in the right-of-way shall secure and maintain the following liability insurance policies insuring the utility as named insured and naming the City, and its elected and appointed officers, officials, agents, and employees as additional insureds on the policies listed in paragraphs 1 and 2 below:
- Commercial general liability insurance, including premises-operations, explosion, collapse, and underground hazard (commonly referred to as “X,” “C,” and “U” coverages) and products-completed operations coverage with limits not less than:
- Five million dollars ($5,000,000) for bodily injury or death to each person;
- Five million dollars ($5,000,000) for property damage resulting from any one accident; and
- Five million dollars ($5,000,000) for all other types of liability.
- Automobile liability for owned, non-owned and hired vehicles with a combined single limit of one million dollars ($1,000,000) for personal injury and property damage for each accident;
- Worker’s compensation with statutory limits; and
- Employer’s liability insurance with limits of not less than one million dollars ($1,000,000) per employee and per accident.
If the utility is not providing such insurance to protect the contractors and subcontractors performing the work, then such contractors and subcontractors shall comply with this Section.
- Commercial general liability insurance, including premises-operations, explosion, collapse, and underground hazard (commonly referred to as “X,” “C,” and “U” coverages) and products-completed operations coverage with limits not less than:
- Excess or Umbrella Policies. The coverages required by this Section may be in any combination of primary, excess, and umbrella policies. Any excess or umbrella policy must provide excess coverage over underlying insurance on a following-form basis such that when any loss covered by the primary policy exceeds the limits under the primary policy, the excess or umbrella policy becomes effective to cover such loss.
- Copies Required. The utility shall provide copies of any of the policies required by this Section to the City within ten (10) days following receipt of a written request therefor from the City.
- Maintenance and Renewal of Required Coverages. The insurance policies required by this Section shall contain the following endorsement:
“It is hereby understood and agreed that this policy may not be canceled nor the intention not to renew be stated until thirty (30) days after receipt by the City, by certified mail, return receipt requested, of a written notice addressed to the City Administrator of such intent to cancel or not to renew.”
Within ten (10) days after receipt by the City of said notice, and in no event later than ten (10) days prior to said cancellation, the utility shall obtain and furnish to the City evidence of replacement insurance policies meeting the requirements of this Section. In the event that the utility fails to obtain or produce evidence of said replacement insurance, any permits issued pursuant to this Chapter shall, without any further notice, be null and void. - Self-Insurance. A utility may self-insure all or a portion of the insurance coverage and limit requirements required by Subsection A. herein. A utility that self-insures is not required, to the extent of such self-insurance, to comply with Subsections A, B, C, and D of this Section. A utility that elects to self-insure shall provide to the City evidence sufficient to demonstrate its financial ability to self-insure the insurance coverage and limit requirements required under Subsection A herein, such as evidence that the utility is a “private self insurer” under the Workers Compensation Act.
- Effect of Insurance and Self-Insurance on Utility’s Liability. The legal liability of the utility to the City and any person for any of the matters that are the subject of the insurance policies or self-insurance required by this Section shall not be limited by such insurance policies or self-insurance or by the recovery of any amounts thereunder.
- Insurance Companies. All insurance provided pursuant to this section shall be effected under valid and enforceable policies, issued by insurers legally able to conduct business in the State of Illinois. All insurance carriers and surplus line carriers shall be rated "A-" or better and of a class size "X" or higher by the A.M. Best Company.