§ 19-665. Insurance.

(a)

A permit holder shall procure and keep in full force and effect no less than the insurance coverage required by this section through a policy or policies written by insurance company that:

(1)

Is authorized to do business in the State of Texas;

(2)

Is acceptable to the city; and

(3)

Does not violate the ownership or operational control prohibition described in this section.

(b)

The insured provisions of the policy must name the city and its officers and employees as additional insureds, and the coverage provisions must provide coverage for any loss or damage that may arise to any person or property by reason of the operation of a dockless vehicle.

(c)

A permit holder shall maintain the following insurance coverages:

(1)

The commercial general liability insurance must provide single limits of liability for bodily injury (including death) and property damage of one million dollars ($1,000,000.00) for each occurrence, with a two million dollars ($2,000,000.00) annual aggregate.

(2)

If a permit holder will utilize motor vehicles in its operations, the business automotive liability insurance must cover owned, hired, and non-owned vehicles, with a combined single limit for bodily injury (including death) and property damage of five hundred thousand dollars ($500,000.00) per occurrence.

(3)

Worker's compensation insurance with statutory limits.

(4)

Employer's liability insurance with the following minimum limits for bodily injury by:

a.

Accident, five hundred thousand dollars ($500,000.00) per each accident; and

b.

Disease, five hundred thousand dollars ($500,000.00) per employee with a per policy aggregate of five hundred thousand dollars ($500,000.00).

(d)

Insurance required under this article must:

(1)

Include a cancellation provision in which the insurance company is required to notify the director in writing not fewer than thirty (30) days before cancelling the insurance policy (for a reason other than non-payment) or before making a reduction in coverage;

(2)

Include a cancellation provision in which the insurance company is required to notify the director in writing not fewer than ten (10) days before cancelling for nonpayment;

(3)

Cover all dockless vehicles during the times that the vehicles are deployed or operating in furtherance of the permit holder's business;

(4)

Include a provision requiring the insurance company to pay every covered claim on a first-dollar basis;

(5)

Require notice to the director if the policy is cancelled or if there is a reduction in coverage; and

(6)

Comply with all applicable federal, state, and local laws.

(e)

No person who has a twenty (20) percent or greater ownership interest in the permit holder may have an interest in the insurance company.

(f)

A permit holder may not be self-insured.

(g)

Any insurance policy required by this article must be on file with and approved by the city prior to the issuance of a permit agreement, must remain in effect during the term of the permit agreement.

(Ord. No. 2018-10-11-0803 , § 1, 10-11-18)