Chapter 1-6
MINIMUM INSURANCE REQUIREMENTS

Sections:

1-6-01  Minimum insurance requirements.

1-6-01 Minimum insurance requirements.

(a)  Every contractor entering into a contract with the City of Turlock and every applicant for a permit required by the Turlock Municipal Code or use of City building, park or right of way shall procure and maintain for the duration of the contract, permit or use of City property insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work contracted for or permitted.

(b)  Minimum limits of insurance. The contractor or permittee shall maintain limits no less than:

(1)  General Liability: One Million and no/100ths ($1,000,000.00) Dollars per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability Insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to the project or location or the general aggregate limit shall be twice the required occurrence limit.

(2)  Employer's Liability: One Million and no/100ths ($1,000,000.00) Dollars per accident for bodily injury or disease.

(c)  Deductibles and self-insured retention. Any deductibles or self-insured retention must be declared and an acceptable coverage/replacement for such deductible must be approved by the City Attorney. At the option of the City Attorney, either:

(1)  The insured shall reduce or eliminate the deductible or self-insured retention as respects the City, its officers, officials, employees and volunteers; or

(2)  The insured shall procure a bond guaranteeing payment of losses and related investigations, claim administration and defense expenses.

(d)  Acceptability of insurance company. Insurance is to be placed with a primary insurance carrier with a current A.M. Best's rating of no less than A-:VII.

(e)  Verification of coverage. The contractor, permittee or applicant shall furnish the City with verification of insurance coverage on forms approved by the City Attorney. Said verification shall include certificate(s) of insurance and original endorsements signed by a person authorized by the insurer to bind coverage on its behalf. All endorsements are to be received by the City and approved by the City Attorney prior to the commencement of any contract work or permitted activity.

(f)  Exception. An exception to the minimum insurance standards established herein to increase or decrease the monetary policy limits or the required rating of the insurance carrier may be granted in writing jointly by the City Manager and City Attorney upon proof to their satisfaction that:

(1)  If the monetary policy limit is lower than the minimum policy limits established herein, that the risk to the public general welfare and safety is minimized through the imposition of safety conditions; or

(2)  If such services or activity has a substantial or unusual risk to the public general welfare, health and safety, the monetary policy limits shall be increased to cover the possible risk and/or damages that such services or activity may cause; or

(3)  If the insurance for the activity is not available with an insurance company meeting the minimum rating standard established in 1-6-01(d) and a lower insurance rating is acceptable to both the City Manager and the City Attorney.

(744-CS, Added, 05/14/1992)