89-35 AMENDING CITY CODE - INSURANCE REQUIREMENTS - CHAPTERS 37, 39, 57 AND 59

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■ . - � ;, . RISK MANAGII�NT DIVZSION MEMOBAlIDUM NO. 89-033 April 4, 1989 MEMO T0: Daniel R. So�erfeldt, Assistant City Manager FROM: �Jerry Bauer, Risk Manager SUBJECT: INSIIRANCS BEQUIBF�NTS FOR LICENSEES , It has come to my attention through recent discussions with the City's non-health insurance broker and local insurance agents, and through review of insurance contracts and certificates submitted by applicants for street con- struction and excavation ].icenses, that the majority of insurance carriers have adopted a new Insurance Services Off ice (ISO) form of general liability insurance policy that: (1) no Ionger stipulates separate limits of coverage for bodily in�ury and property damage losses, - (2) provides up to $1,000,000 coverage per occurrence on the primary policy, and (3) sets aggregate limits for premises and operations and contractors' , protective coverages where no such limits formerly existed. In order to bring City Code into line with current ISO policy form, I reco�end that the insurance requirements in Chapter 37 (Street Excavation) , Chapter 39 (Sub-Sidewalk Space), Chapter 57 (House Moving) , and Chapter 59 (Sign Hangers) be revised to require liability limits in a minimum amount of $1,000,000 per occurrence and $1,500,000 aggregate for bodily injury and property damage losses. To date, I have been told by the insurance agents for at least seven lo- cal contractors that current ordinance requirements impose a burden of an ad- ditional $500 to $1500 in excess insurance premiums..per contractor, which could be eliminated by this proposed change. I have attached reco�ended revisions of the sections of those chapters of the Code that would be affected by this change. If you have any questions about these recommendations, please let me know. Thank you for your consideration in this matter. GJB/dly attachments i