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City of Portland

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16.40.730 NEMT Company Insurance Requirements.

A.  In order to provide protection to the public, the NEMT Company shall provide levels of insurance in accordance with all requirements of Chapter 16.40.

B.  Providing NEMT Services. The NEMT Vehicle shall be covered by a general commercial liability and primary automobile insurance policy provided by the NEMT Company. Evidence of insurance requirements shall be received and approved by the City prior to an NEMT Company receiving an NEMT Company permit.

C.  Additional Insured and Notification of Policy Changes. The NEMT Company shall provide certificates of insurance naming the City of Portland, its officers, agents, and employees as an additional insured party and give at least 30 calendar days’ notice to the Director before a policy is canceled, expires, or has a reduction in coverage. Insurance coverage requirements include commercial general liability, primary commercial vehicle insurance, workers’ compensation, and employers’ liability insurance (as required by state law).

D.  Insurance Requirements. Insurance requirements of this section shall be satisfied by insurance issued by a licensed insurer or an eligible surplus lines insurer in the state of Oregon.

E.  Commercial Business Insurance. NEMT Company permit holders shall secure and maintain a Commercial General Liability policy reflecting limits of no less than $1 million per occurrence and $2 million aggregate for covered claims arising out of, but not limited to, bodily injury and property damage, in the course of the permit holder’s work under a PFHT permit.

F.  Automobile Insurance. All NEMT Company permit holders shall provide the City with a copy of a valid commercial auto liability policy with the following coverage:

1.  Combined single limit of not less than $500,000 per occurrence for claims arising out of, but not limited to, bodily injury and property damage incurred from the business use of any scheduled, non-owned, and hired automobile in the course of the vehicle’s use as a PFHT vehicle.

G.  Certification of Auto Insurance. NEMT Companies shall provide proof of current, valid insurance for Director certification that all affiliated NEMT Vehicles operating for such company and satisfying the minimum requirements in the event the insurance maintained by the driver has lapsed or does not provide the required coverage.

H.  Insurance Limits Subject to Statutory Changes. The insurance limits are subject to statutory changes as to maximum limits of liability imposed on municipalities of the State of Oregon during the permit’s term;

I.  Subject to Approval by the City Attorney’s Office. The adequacy of insurance coverage outlined in this section is subject to the review and approval by the City Attorney’s Office.

J.  Continuous and Uninterrupted Coverage. The permit holder shall maintain continuous, uninterrupted coverage for the duration of the permit. Any lapse in insurance coverage, even if it is later backdated by the insurance company, is subject to a civil penalty.

K.  Insurance Rating. All insurance companies issuing policies within this section shall be rated by A.M. Best Company and carry at least a rating of A.M. Best A- or better.

L.  Additional Policy Conditions: Policies required under Sections 16.40.730 and/or 16.40.130 must also contain, include, provide for, or comply with the following:

1.  Independent Contractors/Owner-Operators. If an independent contractor/owner-operator relationship exists with a permit holder and the independent contractors/owner-operators provide services under the permit holder’s permit, then the permit holder and the City require the same insurance coverage and limits and conditions as outlined in Subsections 16.40.730 D. – H. The same certificate of liability and additional insured endorsement requirements will apply.

2.  Alternatives to insurance, such as self-insurance, may occur only if the level of coverage and the terms, conditions, and obligations meet the same or higher requirements as found in Subsections 16.40.730 D. – H., and only if the public safety and well-being is not endangered thereby. The adequacy of proposed alternative insurance coverage shall be approved by the City Attorney’s Office before such alternative insurance may become effective.

M.  Failure to comply with any provision in Section 16.40.730 is a Class B violation subject to penalties provided in Sections 16.40.930 to 16.40.950.