§ 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.
Source The provisions of this § 179.7 adopted June 4, 1976, effective June 5, 1976, 6 Pa.B. 1287; amended August 5, 1977, effective August 6, 1977, 7 Pa.B. 2192; amended April 25, 1980, effective July 1, 1980, 10 Pa.B. 1686; renumbered May 16, 1981, 11 Pa.B. 1678; amended January 20, 1984, effective March 21, 1984, 14 Pa.B. 224; readopted December 2, 1988, effective December 3, 1988, 18 Pa.B. 5364; amended May 14, 1993, effective August 13, 1993, 23 Pa.B. 2334. Immediately preceding text appears at serial page (133019).
Cross References This section cited in 67 Pa. Code § 179.13 (relating to permit services); and 67 Pa. Code § 179.14 (relating to single-trip special hauling book permits for oversize movements).
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