Before a contractor shall engage in any work described in this division, he shall file with the city a surety bond in the penal sum of $2,500.00, and a policy of public liability insurance, which policy shall be approved by the city manager. Such policy shall be performable in the county, ensuring the public against any loss or damage that may result to any person or property caused by the negligent or wilful acts of the contractor or his agents or employees in the construction of or growing out of the construction of such work; provided, however, that the maximum amount of recovery in such policy of insurance shall not be less than the following sums for damage caused by the construction or the work: for bodily injury to one or more persons or the death of one or more persons in any one accident, $500,000.00; for the injury or destruction of property in any one accident, $200,000.00 on each property injured or destroyed by the contractor; and a total of $1,000,000.00 for each accidental destruction or injury to all of the property in any accidental destruction or injury to all of the property [sic] in any one accident. All policies of insurance shall contain a provision for a continuing liability thereon up to the full amount thereof, notwithstanding any recovery thereon. It shall be the duty of such contractor and the surety on the bond to give notice to the city by filing a written notice with the city of the expiration of the policy of insurance at least ten days before its expiration. The surety bond shall be payable to the city, and conditioned on the faithful performance of the rules and regulations of this division. The surety on the bond shall be a company authorized to transact business in the state. This bond shall remain in effect for a period of two years.
(1999 Code, sec. 78-94)