To the extent allowed by law, the right-of-way user shall be liable to the city for any damage or loss occasioned by any act and/or omission occurring in connection with its excavation, and subject to state law, the right-of-way user shall fully indemnify, hold harmless and defend the city, its councilmembers, officers, employees, agents, representatives and volunteers from and against any and all suits, actions, judgments, losses, costs, demands, claims, expenses (including attorney's fees), damages, and liabilities of every kind to which the city, its councilmembers, officers, employees, agents, representatives and volunteers may be subjected for injury of any type, death or property damage arising from or connected with any such act and/or omission. The city shall promptly notify a permittee, or right-of-way user, at the address set forth in the permit, or last known address, of any claim, suit or demand served upon the city and alleging negligent or wrongful conduct by the permittee or right-of-way user in connection with an excavation.
(Ordinance 02-05-65, sec. 3(4.1), adopted 5/7/02)
(a) 
Right-of-way users shall furnish an original completed certificate of insurance to the department which shall be completed by an agent authorized to bind the named underwriter and their company to the coverage, limits, and termination provisions shown thereon, and which shall furnish and contain all required information referenced or indicated thereon. The original certificate must have the agent's original signature, including the signer's company affiliation, title and phone number, and be mailed directly from the agent to the city. The city shall have no duty to perform under this article until such certificate has been delivered to the department. The certificate holder must be the city as shown in the insurance example (see exhibit A to Ordinance 2022-11-63).
(b) 
The city reserves the right to review the insurance requirements of this section to modify insurance coverage and limits when deemed necessary and prudent by the city based upon changes in statutory law, court decisions, or circumstances surrounding this article, but in no instance will the city allow modification whereupon the city may incur increased risk.
(c) 
Subject to the right-of-way user's right to maintain reasonable deductibles in such amounts as are approved by the city, right-of-way users shall obtain and maintain in full force and effect for the duration of the permit, and any extension thereof, and/or duration of time it maintains facilities in the public right-of-way, at the right-of-way user's sole expense, insurance coverage written on an occurrence basis, by companies authorized and admitted to do business in the state and rated A- or better by A.M. Best Company and/or otherwise acceptable to the city, in the following types and amounts:
Type
 
Amount
1.
Worker's compensation employer's liability
Statutory $500,000.00/$500,000.00/$500,000.00
2.
Commercial general (public) liability insurance to include coverage for the following:
Bodily injury and property damage of $2,000,000.00 per occurrence, $5,000,000.00 general, aggregate or its equivalent in umbrella or excess liability coverage
 
a. Premises/operations
 
b. Independent contractors
 
c. Products/completed operations
 
d. Contractual liability
 
e. Personal injury
 
f. Explosion, collapse, underground
 
g. Broad form property damage, to include fire legal liability
*3.
Business automobile liability:
Combined single limit for bodily injury and property damage of $1,000,000.00 per occurrence or its equivalent
 
a. Owned/leased vehicle
 
b. Nonowned vehicles
 
c. Hired vehicles
*4.
Professional liability (claims made from)
$1,000,000.00 per claim to pay on behalf of the insured all sums which the insured shall become legally obligated to pay as damages by reason of any act, malpractice, error or omission in professional services
*5.
Contractor's pollution liability coverage
$1,000,000.00 written on a claims made form with a two year extended reporting period
*6.
Pollution liability motor carrier and trucker coverage endorsing the upset, overturn and remediation of a load in transport
Combined single limit for bodily injury and property damage of $1,000,000.00 per occurrence written or an occurrence form
*If applicable.
(d) 
The city shall be entitled, upon request and without expense, to receive copies of the policies and all endorsements thereto as they apply to the limits required by the city, and may make a reasonable request for deletion, revision, or modification of particular policy terms, conditions, limitations or exclusions (except where policy revisions are established by law or regulation binding upon any party to the policy or the underwriter of such policy). Upon such request by the city, the right-of-way user shall exercise reasonable effort to accomplish such changes in policy coverage, and shall pay the cost thereof.
(e) 
Right-of-way users shall ensure that all insurance contracts and certificate of insurance contain the following required provisions:
(1) 
Name the city and its councilmembers, officers, employees, volunteers, agents and representatives as additional insured with respect to the operations and activities of, or on behalf of, the named insured performing in the right-of-way under provision of this article, with the exception of the professional liability, workers' compensation and liability policy;
(2) 
Right-of-way user's insurance shall be deemed primary with respect to any insurance or self-insurance carried by the city;
(3) 
Provide for an endorsement that the "other insurance" clause shall not apply to the city of the city where the city is an additional insured shown on the policy;
(4) 
Workers' compensation and employers' liability will provide for a waiver of subrogation in favor of the city.
(f) 
Right-of-way user shall notify the city in the event of any notice of cancellation, nonrenewal or material change in coverage and shall give such notices not less than 30 days prior to the change, or 10 days notice for cancellation due to nonpayment of premiums, which notice must be accompanied by a replacement certificate of insurance. All notices shall be given to the city at the following address:
Right-of-Way Manager
Department of Public Works
City of Frisco
11300 Research Road
Frisco, Texas 75033; or
Emailed to ROWTech@friscotexas.gov
(g) 
Nothing herein contained shall be construed as limiting in any way the extent to which the right-of-way user may be held responsible for payments of damages to persons (including death) or property resulting from the right-of-way user's, or its subcontractors', performance of the work performed in the public right-of-way.
(h) 
The city owned utilities shall not be required to provide the insurance specified herein.
(i) 
With respect to the right-of-way user's obligation to comply with the requirements for commercial general (public) liability insurance coverage to include pollution coverage, the city may allow the right-of-way user to self-insure upon annual production of evidence that is satisfactory to the city. With respect to the right-of-way user's obligation to comply with the requirements for automobile liability insurance and for worker's compensation insurance, a right-of-way user may self-insure, provided the right-of-way user tenders satisfactory evidence of self-insurance as contemplated by the State Motor Vehicle Financial Responsibility Law, V.T.C.A., Transportation Code sec. 601.124, and the Texas Workers' Compensation Act, V.T.C.A., Labor Code sec. 407.001 et seq., as amended.
(Ordinance 02-05-65, sec. 3(4.2), adopted 5/7/02; Ordinance 2022-11-63 adopted 11/15/2022; Ordinance 2025-05-30 adopted 5/20/2025)
Before a permit shall be issued, the applicant shall execute and deliver to the city, to be kept on file with the city, a good and sufficient bond of performance or assurance, in the sum of $10,000.00 to be approved by the city and conditioned that the person making the application shall promptly adjust, pay and settle all legitimate claims for damages that may result by reason of carelessness or negligence in the manner of performing such work or by reason of any defects therein caused or arising from careless, negligent or imperfect construction thereof, and to hold the city, its councilmembers, officers, employees, volunteers, agents, and representatives, free and harmless from liability on all such claims for damages to the performance or assurance bond which shall cover the cost of repairs in or upon the street, sidewalk or other public place where the work is to be done that may become necessary by reason of such cut or excavation having been made. The bond shall be maintained until the work is accepted by the city. With respect to the right-of-way user's obligation to comply with the requirements for a performance/assurance bond, the city may, in the city's sole discretion, allow the right-of-way user to self-insure such obligation upon production of evidence that is satisfactory to the city.
(Ordinance 02-05-65, sec. 3(4.3), adopted 5/7/02)
In lieu of a bond of performance or assurance required for each permit issued under the performance/assurance bond section of this article, the applicant may maintain a one-time bond of performance or assurance with the right-of-way manager in the sum of $100,000.00 for the purposes specified in section 78-174, and shall have on file, with the city, an approved bond of performance or assurance in like amount, being then in full force and effect, against which claims shall not have been presented aggregating more than $100,000.00; provided, further, that section 78-174 shall not apply to applications for permits to make cuts, openings or excavations in any street, plaza or other public place paved under contract with the city, unless the contract of maintenance and the maintenance bond therefor shall have expired. The bond shall be maintained until the applicant is no longer working in or on the right-of-ways.
(Ordinance 02-05-65, sec. 3(4.4), adopted 5/7/02)
Any defects of workmanship or material relating to work done by an excavator during the initial project or becoming known, or which should have been known, during the guarantee period (the two years) shall be known as maintenance or repair work, and both the excavator and the sureties and/or the contractor's bond shall be fully liable for any default of such contractor under this section. In the event of a failure in the restoration of an excavation, the right-of-way user shall, at its sole expense, have one opportunity to repair, in a timely manner, the section of the restoration that has failed, which repair shall be in accordance with the standards set forth in this article. In the event of any subsequent failure of that section of the restoration, the city retains the right and option to terminate the right-of-way user's guaranty, upon written notice to the right-of-way user. In such event, the right-of-way user shall reimburse the city for its direct costs associated with the repair of the failure of the restoration work.
(Ordinance 02-05-65, sec. 3(4.5), adopted 5/7/02)
In the event the right-of-way manager reasonably believes the contractor's or right-of-way user's solvency is threatened, the right-of-way manager may, at any time, make written demand on a contractor and/or right-of-way user for bonds, and the contractor and/or right-of-way user shall immediately furnish such additional bond or bonds to the city.
(Ordinance 02-05-65, sec. 3(4.6), adopted 5/7/02)