§ 19-129. Liability insurance required.

(a)

Before any private security business license or private security officer permit shall be issued, the applicant shall have in effect a policy or policies of general liability insurance issued by an insurance carrier which is licensed to do business in the state, has and maintains a local officer or agent in the state upon whom service of process may be had, and carries a Best's policyholder rating of B+ or better.

(b)

For the purposes of this section, the term "liability insurance" means a policy of insurance under which an insurance company obligates itself to handle claims under the coverage of the policy and to indemnify the permit holder or the license holder, its employees and agents, and all additional named insureds, as applicable, and to pay to the claimant all amounts owing up to the limit of coverage.

(c)

A certificate of insurance evidencing the coverage required by this section shall be submitted to the license administrator and shall be approved by the license administrator and by the risk manager.

(d)

At the request of the license administrator, the applicant shall furnish the actual policy of insurance.

(e)

The certificate of insurance shall contain a provision that coverages afforded under the policies will not be cancelled unless at least ten days' prior written notice has been given to the city.

(f)

The policy of insurance shall meet the following requirements:

(1)

Be written on an occurrence basis;

(2)

Name the city as an "additional named insured" to the extent of its interest;

(3)

Indemnify the permit holder, the license holder, the license holder's employees and agents, and the unified government, as appropriate, against claims for damages because of bodily injury, including death, of any person and claims for damages because of injury to or destruction of tangible property, including loss of use;

(4)

Contain a limit of liability of at least $500,000.00 for all damages arising out of bodily injury, including death, and all property damage sustained by any one person in any one accident; and

(5)

Contain a provision for continuing liability under the policy to the full amount of the policy notwithstanding any recovery.

(g)

If an applicant for a private security officer permit is employed by a private security business and shows evidence that he is covered under a policy of insurance, meeting all the requirements of this section, maintained by the employer, such private security officer need not maintain separate individual insurance. If such individual private security officer leaves the employ of such private security business, the private security officer must obtain substitute insurance that meets all the requirements of this section before again acting as a private security officer, and he must present evidence of such insurance to the chief of police or his permit will be revoked.

(h)

If, at any time, in the judgment of the license administrator, such policy is deemed insufficient for any cause, the license administrator may require the permit holder or the license holder to replace such policy with another to be approved by the license administrator and by the risk manager.

(i)

The private security officer permit and the private security business license shall be suspended automatically for any period that required insurance is not maintained in force and shall be reinstated only if the license holder shall furnish another policy acceptable to the license administrator.

(Code 1988, § 19-227; Ord. No. 65892, § 1, 4-7-1994)