A. The licensee shall indemnify and hold the city harmless from any and all losses, claims, actions, or damages suffered by any person or persons by reason of or resulting from any negligence of the licensee or its agents, employees, or patrons or on account of any act or omission of the licensee in its exercise of its license or use or occupancy of the premises. In the event any suit or action is brought against the city, the licensee shall, upon notice of the commencement thereof, defend the same, at no cost and expense to the city, and promptly satisfy any final judgment adverse to the city or to the city and the licensee jointly; provided, that in the event the city determines that one or more principles of government or public law are involved, the city retains the right to participate in such action. In the event of an ultimate finding of concurrent negligence by the licensee and the city, the licensee’s and the city’s responsibility for the defense costs and for satisfying any judgment, in excess of insurance, shall be proportionate to the percentage of each party’s negligence or that of its agents, employees, representatives and subcontractors. In the event of an ultimate finding of no negligence by the city, the licensee shall have total responsibility for defense costs and for satisfying any judgment. Nothing contained in this section shall be construed as requiring the licensee to indemnify the city against liability for damages arising out of bodily injury to persons or damage to property caused by or resulting from the sole negligence of the city or its officers, employees, or agents.

B. As a condition precedent to obtaining a license, the licensee shall, at no expense to the city, secure and maintain during the full term of this agreement, general comprehensive liability insurance issued by one or more companies authorized to do business in the state of Washington, which insurance shall be subject to the approval of the city attorney as to company, form, coverage, and which insurance must fully protect the city from any and all claims and risks in connection with any activity performed by the licensee by virtue of this agreement and provide the following minimum coverage:

Said policy must specifically name the city of Bellingham as an additional insured party thereunder in the following manner:

The City of Bellingham is an additional insured for all coverages provided by this policy of insurance and shall be fully and completely protected by this policy and for any claim, suit, injury, death, damage or loss of any sort sustained by a person, organization or corporation in connection with any activity upon or use or occupancy of establishments regulated by this section.

The coverages provided by this policy to the City or any other named insured shall not be terminated, reduced, or otherwise changed in any respect without providing at least 30 days prior written notice to the Director.

C. The procuring of the insurance required by this section shall not be construed to limit licensee’s liability hereunder.

D. Licensee shall provide for the prompt and efficient handling of all claims for injury, death, damage or loss arising out of the acts or omissions of licensee during the term of this section. [Ord. 10197, 1991].