§ 5-6. Insurance and bond.

(a)

Every contractor or subcontractor granted a certificate of registration under the terms of this article shall be required to maintain, at all times, with a casualty insurance company authorized to do business in this state, contractors liability insurance with minimum limits of not less than one hundred thousand dollars ($100,000.00) for one (1) person and three hundred thousand dollars ($300,000.00) for more than one (1) person, in any one accident, and public property damage insurance with a minimum limit of not less than twenty-five thousand dollars ($25,000.00) for any one (1) accident.

(b)

At the time application is being made and before a certificate of registration can be issued, the contractor shall file with the building official a certificate signed by a qualified agent of the casualty insurance company stating that a policy has been issued to the licensee for employees' liability insurance or workmen's compensation insurance, public liability insurance, public property damage insurance and any other insurance required by state or federal law; the minimum limits for each; the policy number; the name of the company; the effective date of the policy; the expiration date of such policy; together with a statement and a copy of an endorsement placed on such policy requiring thirty (30) days written notice by registered mail to the building official if it becomes necessary to cancel the policy for any reason.

(c)

In the event of a cancellation of a policy of any person hereunder, the certificate of registration of such contractor shall automatically be revoked. The certificate of registration may be reinstated by the building official when the certificates of insurance in compliance with this section have been furnished.

(d)

The person shall also file with the building official a bond in the amount of ten thousand dollars ($10,000.00) executed by good and sufficient surety payable to the city and consumer conditioned on the person observing and complying with all valid zoning and building regulations and ordinances of the city. Any claim or action asserted by the consumer against the bond shall be in the name of the consumer and not by the city "for use and benefit of" the consumer.

(Ord. No. 93-31, 10-11-93; Ord. No. 94-20, § 2, 7-11-94)