§ 30-36. Insurance.

(a)

Required.

(1)

Simultaneously with the execution of the franchise agreement, the franchisee shall provide proof of general liability insurance insuring against claims for liability and damages. The franchisee shall maintain said insurance throughout the term of the franchise; and said insurance shall include, at a minimum, the following types of insurance coverage in amounts not less than shown:

a.

Worker's compensation. Coverage to apply for all employees for statutory limits in compliance with the applicable state and federal laws. The policy must include employers' liability with a limit of $500,000.00 each accident.

b.

Comprehensive general liability. Shall have minimum limits of $1,000,000.00 per occurrence combined single limit for bodily injury liability and property damage liability. This shall include premises and/or operations, independent contractors, and subcontractors and/or completed operations, broad form property damage, XCU coverage, and a contractual liability endorsement.

c.

Business auto policy. Shall have minimum limits of $1,000,000.00 per occurrence combined single limit for bodily injury liability and property damage liability. This shall include owned vehicles, hired and nonowned vehicles and employee nonownership.

(2)

The insurance coverage obtained by the franchisee in compliance with this section shall be approved by the risk management administrator and the county attorney, and such insurance policies, along with written evidence of payment of required premiums, shall be filed and maintained with the county administrator during the term of the franchise.

(3)

The insurance coverage and policy requirements may be changed and increased from time to time at the discretion of the board of county commissioners to reflect changing liability exposure and limits.

(4)

Nothing herein is intended as a limitation to the extent of any legal liability of the franchisee.

(b)

Insurance policy provisions.

(1)

Resident company and agent. All insurance policies and bonds as are required of a franchisee in this article shall be written by a company or companies authorized and qualified to do business in the state, and have a minimum rating of "A XX" in Best's Rating Guide.

(2)

Certificates and renewals. Certificates and renewals of all coverage required shall be promptly filed by the franchisee with the county administrator. Each policy shall require notice, and the franchisee shall notify the county within 30 days of any cancellation or modification of any insurance coverage required by this article, which notice shall be sent by registered mail to the county administrator or his designee. Renewal certificates shall be filed with the county no less than 30 days prior to the policy expiration date.

(3)

Additional insured. The county shall be included as an additional insured on both the comprehensive general liability and business auto liability policies.

(4)

Premium payment. Companies issuing the insurance policies shall have no recourse against the county for payment of any premiums or assessments, and same shall be the sole responsibility of the franchisee.

(5)

When effective. No franchise granted under this article shall be effective unless or until each of the foregoing policies' certificates of insurance as required in this section have been delivered to the county.

(6)

Not waiver. Neither the provisions of this section, nor the acceptance of any bonds by the county pursuant to this article, nor any damages received by the county thereunder shall be construed to excuse performance by a franchisee or limit the liability of a franchisee for damages to the full amount of the bonds or otherwise.

(Ord. No. 88-90, § 11; Ord. No. 96-15, § 2, 3-26-96)