67 Pa. Code § 179.7 - Indemnification, insurance and security
(a)
Indemnification.
Indemnification of the Department for property damage and personal injury will
be governed as follows:
(1) The permittee
shall indemnify fully and if requested, defend the Commonwealth from liability,
loss, injury or damage to persons or property which the Commonwealth, its
officers, agents and employes individually may suffer as a result of claims,
demands, costs or judgments arising against it as a result of the granting of
the permit to the permittee, including claims, demands, costs or judgments
arising as a result of activities of the permittee, its agents, employes or
others at the permit site or work or other actions taken by one or more of them
under or in violation of the permit; or as a result of the failure of one or
more of them to conform to pertinent statutes, ordinances, regulations or other
requirements of a governmental authority in connection with the
permit.
(2) The permittee and its
contractors shall add the Commonwealth as an additional insured to their
insurance policies to secure the permittee's indemnification of the Department
for property damage and personal injury under this subsection. Contractors
shall include pilot car owners.
(3)
The amount of insurance shall be at least $250,000 per person and at least $1
million per occurrence, or other statutory limitations on damages as the
General Assembly may establish. A policy shall guarantee coverage for damage
and injury which occurs during the time the permit is in effect and which is
the result of the granting of the permit to the permittee.
(4) Upon request, the permittee shall deliver
to the Department certificates of insurance evidencing that the coverage
required under this subsection has been obtained. An applicant which provides
satisfactory evidence that it has complied with section 1787 of the act
(relating to self-insurance), Chapter 223 (relating to self-insurance) and 31
Pa. Code Chapter 67, Subchapter B (relating to evidence of financial
responsibility), may be a self-insurer.
(b)
Insurance. The permittee
shall obtain, prior to movement under the permit, a policy of insurance, issued
by an insurer having a certificate of authority and a licensed agent authorized
to transact the business of insurance in this Commonwealth, in accordance with
the following conditions:
(1) The permittee
and its contractors shall obtain insurance for public liability and property
damage, in a form satisfactory to the Department, to cover a loss that may
arise out of operations under the permit.
(2) The amount of insurance shall be at least
$250,000 per person and at least $1 million per occurrence. A policy shall
guarantee coverage for damage and injury which occurs during the time the
permit is in effect and which is the result of the granting of the permit to
the permittee.
(3) Upon request,
the permittee shall deliver to the Department certificates of insurance
evidencing that the insurance coverage required under this subsection has been
obtained. An applicant which provides satisfactory evidence that it has
complied with section 1787 of the act, Chapter 223 and 31 Pa. Code Chapter 67,
Subchapter B, may be a self-insurer.
(4) The permittee's obligations to indemnify
the Department and to obtain insurance to secure indemnification under
subsection (a) and its obligations to restore the highways and bridges and to
obtain security relating to restoration under subsection (c) are separate from
the obligations to obtain insurance for the purposes required under this
subsection. Obtaining insurance under this subsection does not relieve the
permittee of its obligations under subsections (a) and (c).
(c)
Security. The Department
may require the applicant to execute an agreement or provide security, or both,
as a prerequisite to issuance of the permit. The Department's determination as
to the necessity and the amount of security will be based on sizes and weights
of the vehicle or combination and load, as well as the condition of highways,
structures and appurtenances on the permitted routes. If security is required,
it shall be delivered to the Department in a form and amount acceptable to the
Department and shall guarantee restoration of the highways and bridges which
may be damaged by operations under the permit, for at least 1 year after the
expiration of the permit. If the security is executed by a corporate surety
registered and authorized to do business in this Commonwealth, the following
documents are acceptable forms of security:
(1) An individual or blanket bond-Form
M-937C-executed by the permittee and naming the Commonwealth as
obligee.
(2) An irrevocable letter
of credit in a form acceptable to the Department, signed by a bank officer and
naming the Department as sole beneficiary, to be honored on
presentment.
Notes
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