§ 8.06.300. Insurance.

(a)

Each franchisee shall maintain, at its own expense, insurance coverages, as provided in the franchise agreement or as established from time to time by the administrator. All such insurance shall remain in effect, uninterrupted, through the term of the franchise agreement.

(b)

Minimum insurance coverage shall include the following items, in amounts to be determined by the administrator: comprehensive general liability and insurance services office covering broad form comprehensive general liability automobile liability; worker's compensation insurance as required by the Labor Code of the state of California and employer's liability insurance.

(c)

The city in its capacity as such, its officers, agents and employees shall be named as primary insureds in such policies. All such policies shall contain a provision requiring that written notice be mailed to the administrator by the insurer not less than 30 days in advance of the cancellation, modification or reduction of the insurance, or failure to renew such insurance, whether by the insurer or insured, and whether for nonpayment of premium or otherwise. Certificates of insurance shall be filed with the administrator prior to the issuance of any permit.

(d)

Any act, omission or circumstance which results in the holder of a franchise being out of compliance with the requirements of this section during the term of the franchise shall constitute grounds for the immediate suspension of the franchise, without advance notice or hearing, pending re-establishment of compliance by the franchisee with the requirements of this chapter.

(Ord. 732B §1(part), 2003)